BARRIERS THAT PREVENT THAI ADULTS FROM LISTENING TO MUSIC VIA ONLINE MUSIC STREAMING
BY
MR. SUPPATIN THIPPAYAWAT
AN INDEPENDENT STUDY SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE PROGRAM IN MARKETING (INTERNATIONAL PROGRAM) FACULTY OF COMMERCE AND ACCOUNTANCY THAMMASAT UNIVERSITY ACADEMIC YEAR 2017 COPYRIGHT OF THAMMASAT UNIVERSITY
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BARRIERS THAT PREVENT THAI ADULTS FROM LISTENING TO MUSIC VIA ONLINE MUSIC STREAMING
BY
MR. SUPPATIN THIPPAYAWAT
AN INDEPENDENT STUDY SUBMITTED IN PARTIAL FULFILLMENT OFTHE REQUIREMENTS FOR THE DEGREE OF MASTER OF SCIENCE PROGRAM IN MARKETING (INTERNATIONAL PROGRAM) FACULTY OF COMMERCE AND ACCOUNTANCY THAMMASAT UNIVERSITY ACADEMIC YEAR 2017 COPYRIGHT OF THAMMASAT UNIVERSITY
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Independent Study Title BARRIERS THAT PREVENT THAI ADULTS FROM LISTENING TO MUSIC VIA ONLINE MUSIC STREAMING Author Mr. Suppatin Thippayawat Degree Master of Science Program in Marketing (International Program) Major Field/Faculty/University Faculty of Commerce and Accountancy Thammasat University Independent Study Advisor Professor Paul G. Patterson, Ph.D. Academic Year 2017
ABSTRACT
As Thailand is entering the 4.0 era, the government has begun to actively engage in the development of infrastructure in preparation for the emergence of new technologies. Under the influence of smartphones and 4G internet, along with the introduction of music streaming services, the music-listening behavior of Thai people have shifted towards music streaming channels. Nonetheless, it is still apparent that the majority of Thai adults aged 30 years or above are still listening to music via traditional channels.
This research had the primary objectives to gain a better understanding of the barriers that prevent Thai adults from using music streaming services, while enabling these companies to develop appropriate strategies to educate and capture customers. This study employed a qualitative research method by conducting in-depth interviews on 15 non-music streaming users aged 30 years or above via face-to-face or telephone. The questions in the interview script were semi-structured questions. Moreover, both purposive and snowball sampling methods were exercised to acquire the targeted respondents.
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The key findings of this research provided a profound insight into the barriers that prevent Thai adults from listening to music via online music streaming services. According to the results, such barriers include the fact that they were satisfied with their current music channels and they were not willing to pay for using the full features of music streaming services. Likewise, the technological complexities of downloading and using music streaming services further discouraged many Thai adults from using such services. With that respect, it is significant for music streaming companies to educate Thai adults on how to use music streaming services and create awareness of the advantages of streaming services by employing the concept of value co-creation.
Keywords: Music streaming, Thai adults, JOOX, Spotify
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ACKNOWLEDGEMENTS
Firstly, I would like to express my deepest gratitude to my advisor, Professor Paul G. Patterson, Ph.D., who provided me with valuable advices throughout the entire period of this research from topic selection to report submission. He encouraged me to pursue the topic of my interest, while seeking more knowledge on marketing. His advices and constructive feedback had unquestionably shaped this research to embrace rich knowledge and insights.
Secondly, I would like to express my gratitude to all respondents who cooperated and shared their stories during the interview. This research would not have been successfully completed without their kind cooperation.
Lastly, I would like to thank all my friends and family who have always been there for me, as well as supporting and encouraging me with their unconditional love to complete this master’s degree to the best of my ability.
Mr. Suppatin Thippayawat
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TABLE OF CONTENTS
Page
ABSTRACT (1)
ACKNOWLEDGEMENTS (3)
LIST OF TABLES (6)
LIST OF FIGURES (7)
LIST OF ABBREVIATIONS (8)
CHAPTER 1 INTRODUCTION 1
1.1 Problem Statement and Research Purpose 1
1.2 Scope of Research 2
1.3 Terminologies 2
1.4 Research Objectives 3
CHAPTER 2 REVIEW OF LITERATURE 4
CHAPTER 3 RESEARCH METHODOLOGY 12
3.1 Research Methodology 12
3.1.1 Secondary Research 12
3.1.2 Primary Research 12
3.2 Sampling Method 13
3.3 Data Collection 13
3.4 Data Analysis 14
3.5 Theoretical Framework 14
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3.6 Research Limitations 15
CHAPTER 4 RESULTS AND DISCUSSION 16
4.1 Key Findings from Secondary Research 16
4.2 Key Findings from In-Depth Interviews with 18 Non-Music Streaming Users
CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 23
5.1 Conclusions 23
5.2 Recommendations 24
5.3 Future Research Suggestions 26
REFERENCES 27
APPENDIX 29
APPENDIX A: In-Depth Interview Guide 30
BIOGRAPHY 32
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LIST OF TABLES
Tables Page
4.1 Key Findings from In-Depth Interviews with Non-Music Streaming Users 18
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LIST OF FIGURES
Figures Page
3.1 Theoretical Framework 15
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LIST OF ABBREVIATIONS
Symbols/Abbreviations Terms
B2B Business to business
B2C Business to customer
WOM Word of mouth
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CHAPTER 1
INTRODUCTION
1.1 Problem Statement and Research Purpose
Nowadays, it is evident that internet and technology are progressing and developing at a remarkably fast pace, which subsequently creates new opportunities to the world. Many countries, including Thailand, have begun to incorporate technologies to enhance the quality of life of citizens. As Thailand is entering the 4.0 era that emphasizes on smart industry, smart city, and smart people (Languepin, 2017), the government heavily allocates the budget to infrastructure development. As a result, Thailand is now equipped with broad network coverages in all provinces, while the speed of network has continually increased and the price of 4G data services has become affordable.
The development of network coverages in Thailand has disrupted the behaviors of Thai people in listening to music. In the past, Thai people would listen to music via radio or audio files. Nonetheless, the emergence of music streaming services has enabled people to listen to music from anywhere at any time as long as they have access to internet. Yet, in the absence of internet access, people can still listen to music offline from their previously downloaded playlist (Arthur, 2016). Accordingly, the number of music streaming service users is growing on account of the increase in the number of smartphone users and the affordability of data services in terms of price.
Thai people who adopt the use of music streaming services the fastest are those below 30 years of age. These young adults grew up in the digital era and can effortlessly learn or acquire new technological skills. They generally seek for new technologies to enhance their quality of life and are quick to adopt the modern way of listening to music, specifically via music streaming platforms. Furthermore, they enjoy using features of music streaming services and sharing opinions amongst their community.
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Nonetheless, it is evident that not all Thai people, particularly adults aged above 30 years, adopt music streaming services. Despite the fact that they are smartphone users and have access to internet, they still listen to music from traditional sources and have their own reasons of not switching to music streaming platforms. Regardless, they do not express their opinions as freely as those under 30 years of age, which further impedes the identification of factors that prevent them from switching to music streaming platforms.
Accordingly, this research emphasized on studying the barriers that prevent Thai adults from switching to music streaming platforms. The results of this research will facilitate music streaming companies to acquire better understanding of the reasons that prevent Thai adults from using their services and enable them to develop strategies to educate and capture those adult customers.
1.2 Scope of Research
Contemporary Topic in Applied Marketing Self-Study Project
This research will study the barriers that prevent Thai adults from listening to music via online music streaming. The research will focus on three major music streaming platforms in Thailand, namely JOOX, Spotify, and Apple Music. Data will be solely collected from non-music streaming users. This research does not consider the users of independent music streaming platforms as music streaming users.
1.3 Terminologies
Music streaming users:
People who listen to music via music streaming platforms as their main channels.
Non-music streaming users:
People who do not listen to music via music streaming platforms as their main channels.
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1.4 Research Objectives
1) To identify barriers that prevent Thai adults from listening to music via online music streaming platforms. 2) To determine appropriate approaches to educating Thai adults to listen to music via online music streaming platforms.
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CHAPTER 2
REVIEW OF LITERATURE
A review of literatures was conducted as a part of secondary research in order to gain an insight into the present overview of issues pertaining to music streaming. Sources of literatures include online published articles and books from Thammasat University’s library. Insights and relevant information were summarized as follows.
Industry Trends
Digital Music and Its Effects on the Thai Music Industry (Vichaithanaruks, 2015)
Music streaming in Thailand is rapidly growing and such upward trend is anticipated to persist for another 5 to 10 years. Such increased popularity of music streaming is accounted for by the changes in consumer behavior and technological advancement. Alternatively, the number of music downloads has decreased at the rate of 20-30% whereby iTunes is expected to be the only survivor amongst the music download platforms.
JOOX’s Positive Outlook on Live Music Streaming (Leesa-Nguansuk, 2017)
There are numerous opportunities in the Thai music industry, specifically in the aspect of online music streaming. Such opportunities emerge from the rise in demand for 4G mobile broadband and the continual increase in the number of smartphone users, which is currently found to be above 40 million people. Furthermore, the music listening behaviors of Thai people have shifted towards music streaming platforms, as reflected by 80% of the population in Thailand who use music streaming applications. In 2016, JOOX – a music streaming service provider – had a total of seven million active users. Such number is anticipated to reach 15 million active users in 2017. On average, the amount of time spent by users on JOOX is 80 minutes per day.
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Music Streaming Trend (Wanut, 2017)
Music streaming encompasses a subscription to access unlimited songs. In 2015, the revenue from music streaming increased by 60.4%, while the revenue from music downloads decreased by 20.5%. After taking into account both music streaming and downloads, it is apparent that the total revenue of the music industry rose by 17.7%. On the other hand, revenue from sales of CDs and vinyl records decreased by 7.6%. Such observations implied that, in the future, people will no longer download songs or albums or listen to music via traditional channels. Yet, the declining trend of CDs and vinyl records does not indicate that they will become obsolete; rather, they will become limited and hence premium.
Interview with Pavit Jitrakorn from GMM Grammy on the Music Industry in Thailand (matemate, 2017) The emergence of music streaming does not only impact consumer behaviors, but also disrupt the business model of record companies that are faced with multiple challenges, including the increased competition and the change in consumer behaviors. The global music industry displays a similar trend to that of Thailand, i.e. digital channels and music streaming are gaining popularity and account for 50% of the total revenue of the music industry, whereas physical channels and music downloads are continuously shrinking and generate only 34% of the total revenue. In addition, it is found that 74% of Thai people who listen to music via online streaming do not care about the record companies. As such, the majority of record companies have begun to shift their focus from B2C to B2B by selling contents to music streaming service providers. However, these record companies are unlikely to launch their own streaming platforms due to a large number of existing players in the market with 90% of the revenue generated from advertisements and 10% from premium subscription fees; record companies believe that they will not be able to thrive in this highly competitive market.
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JOOX’s Plan on Transforming into an Entertainment Platform (Positioning, 2018) JOOX is planning to become more than just a music streaming service provider. It has devised four missions to transform into an entertainment platform, comprising of: 1) Produce radio programs; 2) Organize events; 3) Emphasize on karaoke feature; and 4) Recruit new artists. Across its four missions, JOOX is currently focusing on offering karaoke feature in its platform, concerning the fact that karaoke can connect a large number of people together. With respect to the proposed karaoke feature of JOOX, people can share their karaoke tracks online and those who get the most “likes” will be displayed on JOOX’s karaoke chart.
Consumer Behaviors
A Study of the Attitudes of Thai People towards Downloading Digital Music (Arayawutthikul, 2013) Regarding the piracy issues, the majority of Thai people still download music illegally despite the launch of the anti-piracy campaign. Nonetheless, Thai people have gained more awareness on the piracy issues and are willing to support their favorite artists and record companies, provided that it is effortless to do so and the copyright acts in Thailand are more effective.
Thailand’s Internet User Profile 2017 (Electronic Transactions Development Agency (EDTA), 2017) On average, Generation X spends 5 hours and 48 minutes on internet during the weekdays, which is 30 minutes higher than during the weekends. Moreover, Generation X spends, on average, 1 hour and 54 minutes per day watching television shows or movies or listening to music. It is also found that 46% of Generation X internet users watch television shows or listen to music online.
On the contrary, baby boomers spend an average of 4 hours and 54 minutes on internet during the weekdays, which is 42 minutes higher than during the weekends. Similar to Generation X, baby boomers spend an average of 1 hour and 54 minutes per
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day watching television shows or movies or listening to music. Meanwhile, 33% of baby boomers who are internet users watch television shows or listen to music online.
Customer Path (Kotler, Kartajaya, & Setiawan, 2017)
In this digital era, there are five stages of customer path, namely aware, appeal, ask, act, and advocate. Yet, the path does not always follow the sequence. Details of each stage are explained below.
In the Aware stage, customers passively receive information about brands from advocacy, brand communication, and personal past experiences. In other words, they may acquire information about a particular brand from their friends or family, advertisements, or past experiences when they previously heard about the brand. The keyword of this stage is “I know”.
In the Appeal stage, customers process the information or message they received and select only a few brands of which they are attracted to as a consideration set. The keyword of this stage is “I like”.
In the Ask stage, customers have become interested in the brand and are induced to search for more information. They may seek for additional information about the brand from their friends or family, or through the media such as customer reviews and online forums. They may even acquire information directly from the brand, such as through official website or product trial. The keyword of this stage is “I am convinced”.
In the Act stage, customers have received sufficient information to make a purchasing decision. They may purchase the product or service online or at a physical store and may request for after-sales support when the usage problem occurs. The keyword of this stage is “I am buying”.
In the Advocate stage, a sense of brand loyalty is instilled in customers. During this stage, customers adhere to the brand, repurchase the product or service, or even recommend the brand to other people, i.e. they become the brand advocate. The keyword of this stage is “I recommend”.
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When Playlists are Not Merely a Music Gathering Place, But the Taste of Listeners (Wanut, 2017) In the cassette era, music listeners recorded their favorite songs by using cassette tapes as a storage tool. After that, they would share their choice of songs to other people in the form of cassette tapes. However, the trend has shifted to sharing songs in the form of playlists in response to the increased number of music streaming listeners. Regardless, it is evident that the traditional music listening channels, specifically radio, still survive in the digital era. According to the research of Nielsen in 2017, 72% of music listeners still listen to the radio due to the availability of online radio channels such as smartphones, websites, and applications and the potential to discover new songs; 49% of music listeners discover new songs from the radio. Radio listeners perceive that DJs enhance their experience of listening to music. Cars and homes are the main places where people listen to music, while offices are less common because they do not provide music listeners with the same level of privacy. On average, music listeners have approximately three to four music listening devices, such as mobile phones, tablets, computers, and car radios. Regarding the behaviors of people in listening to music, they are somewhat intricate. Music listeners may listen to music on the radio and switch to online streaming thereafter, or vice versa. One of the prominent features of music streaming is the variety of playlists that can be tailored to meet the needs of each music listener. Alternatively, radio has the advantage in the aspect of DJs who can entertain and enhance the experience of music listeners. With that respect, music streaming companies have the high potential of capturing radio listeners if they hire skillful DJs to organize live programs on their platforms.
Users’ Intention Towards Music Streaming Services: A Case Study of Thailand (Debajyoti & Triyason, 2017) The scope of this research was limited to those who resided in Thailand and had used music streaming services for three months or more. This research concluded that the level of satisfaction and perceived enjoyment had an influence on the intention of music streaming users. It was found that music streaming users solely emphasized on the aspect of enjoyment and did not consider the utility or other benefits they might receive from music streaming services. The higher the level of satisfaction, the higher
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the level of enjoyment experienced by users in listening to music via online streaming services, which subsequently leads to an increase in the level of their intention to use and pay for subscription. Moreover, the research found that users perceived music streaming service providers as an important factor in terms of music collection. They preferred to listen to the songs of both local and international artists. However, they did not consider the song quality as an important element. The majority of users had the intention to use music streaming services on a long-term basis. Accordingly, music streaming service providers should develop strategies to enhance the users’ level of enjoyment and satisfaction in order to sustain their services.
Music Listening Behaviors of Thai People and Key Success Factors of JOOX (Brand Buffet, 2017) JOOX has become successful in Thailand within only one year from its debut in Thai market, whereby such success is supported by five main factors. Firstly, listening to music is one of the popular activities of Thai people. JOOX entered Thai market at the right timing during which the growth of mobile broadband and the number of smartphone users were high. Across all JOOX users in Thailand, 82% of them prefer Thai music, 15% prefer international music, and 3% prefer Asian music. Secondly, JOOX has over five million songs in the music library, comprising of Thai, international, and Asian songs. In addition, JOOX has collaborated with two mobile phone operators in Thailand, namely AIS and DTAC, which enables customers of both operators to try its services. Thirdly, JOOX attracts Thai customers by adopting the freemium model (free and premium) in which users can download JOOX application and listen to music at free of charge but are subject to pop-up advertisements and limited features. To gain access to full features, users need to purchase the VIP account. Fourthly, JOOX offers an array of features that allow users to download songs and store them on mobile phones for offline listening, which saves their internet data usage. Lastly, JOOX is owned by Tencent that has readiness in terms of financial capital. It plans to become more than just a music streaming service provider by expanding its online to offline services, such as organizing concerts, with the ultimate goal to position itself as a music platform.
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Types of Music Streaming Subscribers (Siwarotemarketeer, 2018)
The increased coverage of internet connectivity, advancement of mobile devices, and changes in home theater technology undoubtedly make subscriptions the main revenue generator of streaming platforms. People subscribe to streaming services in order to watch and listen to unlimited movies and music from anywhere at any time. Accordingly, subscribers are the key determinant of the success of music streaming companies, which must be captured by the companies in order to sustain their businesses. Music streaming subscribers can be classified into four main types, as follows:
1. Promotion Abuser is a subscriber who intends to use only the free trial and will cancel the subscription immediately after the end of free trial. Music streaming companies must therefore inform this type of subscriber of the benefits and privileges they will receive from subscription, such as higher sound quality. Likewise, companies should send appreciation messages to them upon their subscription in order to strengthen customer relations and induce them to subscribe on a long-term basis.
2. New Subscriber is a promotion abuser who enjoys using the services and thus converts into a new subscriber. Music streaming companies should provide opportunities for this type of subscriber to express their opinions and rank the music. Likewise, the companies should offer rewards and promotions, such as free temporary VIP upgrade, in order to sustain their subscription and obtain feedback to improve the services.
3. Active User is a subscriber who has been subscribing to music streaming services for a long period of time and has strong attachment to the services. Music streaming companies should thus provide them with new contents and special privileges in return for their loyalty. At the same time, companies may conduct in-depth interviews with active users to obtain recommendations, making them feel important and valued while acquiring useful information for service improvement.
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4. Churned Subscriber is a subscriber who may not renew their subscription after having been a subscriber for a long period of time and may want to switch to other music streaming services. Nonetheless, this type of subscriber will continue to follow news and information of their former music streaming service provider, such as promotions. Accordingly, music streaming companies should provide churned subscribers with positive messages to induce their repurchasing decision.
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CHAPTER 3
RESEARCH METHODOLOGY
3.1 Research Methodology The research on “Barriers that Prevent Thai Adults from Listening to Music via Online Music Streaming” emphasized on examining the behaviors, personal experiences, and perceptions of non-music streaming users. A qualitative study in the form of exploratory research was employed to acquire behavioral and psychological insights. This study consisted of secondary research and primary research, as detailed below.
3.1.1 Secondary Research A secondary research was conducted to gain more understanding of the foundation of the research topic. The sources of secondary research were as follows: Music streaming service providers (JOOX, Spotify, Apple Music): functions, pricing, and features. Related literatures and reports from websites and library: definition of music streaming, overview of the music streaming industry, music listening behaviors of Thai people, and effects of music streaming services on Thailand. Music streaming users’ stories, such as usage experiences, opinions, and feedback, which were obtained from online forums such as Pantip.
3.1.2 Primary Research In-depth Interviews In-depth interview questions were developed from secondary research findings. The objective of in-depth interviews was to understand the music listening behaviors of non-music streaming users, as well as their experiences and perceptions. Other information, such as lifestyles and music preferences, were also analyzed concerning the fact that such information have an influence on the preferred music listening channels of users. In addition, general demographic information were also studied. The
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findings of this research will facilitate music streaming companies to gain deeper insights into the barriers that prevent non-music streaming users from listening to music via online music streaming and identify appropriate approaches to educating non-music streaming users. Interviews were conducted on 15 non-music streaming users. The method of sampling is explained in the following section.
3.2 Sampling Method This research employed both purposive and snowball sampling methods. The purposive sampling method was initially used to acquire respondents who match the criteria. Meanwhile, the snowball sampling method was subsequently used to inquire qualified respondents to recruit potential respondents who pass the criteria. The criteria in selecting in-depth interview respondents were as follows:
Demographics Age: 30 years old and above Residence: Bangkok, Thailand Have access to internet (4G or above) Smartphone user
Lifestyles
Have not used the three major music streaming platforms in Thailand (JOOX, Spotify, and Apple Music) in the past three months. Listen to music on a daily basis but do not use the aforementioned music streaming platforms as the main channel (not more than once per week).
3.3 Data Collection In-depth interviews were conducted on a total of 15 respondents during January 2018 to March 2018 by either a face-to-face or telephone interview according to the convenience of each respondent. The respondents were informed of the research
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objectives prior to the interview. The duration of each interview was less than 30 minutes. Results were recorded and typed in an electronic form for further analysis.
The questions in the in-depth interviews were semi-structured questions (See Appendix A: In-depth Interview Guide), which comprised of the following elements: music listening behaviors and experiences, perceptions, demographics, and lifestyles. Prompting and probing techniques were employed to acquire more insights and clarification.
3.4 Data Analysis The following steps were used to analyze qualitative data that were collected from in-depth interviews. 1. Transcribe the recordings from in-depth interviews into electronic documents. 2. Organize data, including cleaning, structuring, and familiarizing. 3. Interpret data, including coding, categorizing, and theme applying. 4. Recognize patterns from the interpreted data and verify such data. 5. Represent the data, including storytelling.
3.5 Theoretical Framework The theoretical framework was employed to serve as a guidance for this research. Independent variables consisted of demographics and behaviors of non-music streaming users and attributes of music streaming services. Dependent variables comprised of barriers that prevent Thai adults from listening to music via online streaming.
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Independent Variables
1. Demographic Factors Age Occupation
2. Behavioral Factors Dependent Variables
Music listening time Barriers that prevent Music listening channels Thai adults from Music preferences listening to music via Music listening devices online streaming Perception towards music streaming services Technological
competency 3. Music Streaming Services
Features Pricing
Figure 3.1 Theoretical Framework
3.6 Research Limitations
The sample of this research cannot represent the entire population of non-music streaming users due to the use of non-probability sampling method. Moreover, the sample size is considerably small as a result of time and budget constraints, which cannot represent all demographic profiles of non-music streaming users.
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CHAPTER 4
RESULTS AND DISCUSSION
4.1 Key Findings from Secondary Research
Listening to music is regarded as one of the most popular activities of Thai people. Thai music is ranked first in terms of preference, followed by international music and Asian music, respectively (Brand Buffet, 2017). There are a number of music listening channels for Thai people to choose from, which can be classified into three main groups. The first group consists of physical audio files such as vinyl records, cassette tapes, CDs, and MP3 (Vichaithanaruks, 2015). The second group consists of radio stations, including online radio stations such as radio applications and websites. The third group consists of on-demand music services where users can access music from anywhere at any time, such as YouTube and music streaming service providers (JOOX, Spotify, and Apple Music).
However, the majority of Thai consumers are not willing to pay for listening to music. Some believe that they should not be required to pay for listening to music and that it should be free for everyone. Indeed, this group of consumers is not aware of the capital, efforts, and time invested into producing a song. Alternatively, those who discern the value of music or artists are found to be the only group of consumers who purchase merchandises, such as CDs, to support their artists and acquire ownership in that particular music or song.
In the past when the MP3 format became the mainstream, Thai consumers illegally downloaded songs in the MP3 format for storage and ownership instead of purchasing CDs or legal MP3 files from record companies. During such period, Thai consumers had access to high speed internet and smart phones, which enabled them to download and store MP3 files in an effortless manner.
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Upon the rise in the popularity of MP3 format, music streaming services emerged and influenced the music listening behaviors of Thai people. Music streaming services allow users to listen to music from anywhere at any time, as long as they have a smartphone, tablet, or computer and internet access, while enabling users to download music for offline listening. The downloaded music files can only be used and accessed via the music streaming platform, which means that users have no ownership in the downloaded songs. Music streaming service providers do not allow users to own music but allow them to share their favorite songs to other people in the form of URL.
Music streaming service providers operate by adopting the freemium model, i.e. a combination of free and premium versions. In the free version, users are subject to advertisements and have limited access to the music library. On the contrary, in the premium version, users can download music for offline listening and benefit from higher sound quality with no advertisements.
The growth of the music streaming industry in Thailand is primarily accounted for by the increase in the demand for 4G mobile broadband and number of smartphone users, which currently exceeds 40 million people (Leesa-Nguansuk, 2017). As of present, there are three main music streaming platforms in Thailand, namely JOOX, Spotify, and Apple Music.
JOOX is regarded as the leading music streaming platform in Thailand, followed by Spotify and Apple Music. According to Pantip online forum, Thai music streaming users prefer JOOX services due to the relatively high availability of Thai songs as compared to other streaming services. Likewise, JOOX also offers an array of features, including lyrics, karaoke, and music videos – all of which enhance users’ engagement. Another popular music streaming platform in Thailand is Spotify, which has the largest music library across all online streaming services and offers playlists that are tailored by artificial intelligence to meet each individual user’s needs. Thai users perceive that Spotify enables them to discover new songs easily. Apple Music is also popular amongst Thai iOS users who use iPhones and iPads, although it can operate on all platforms, including iOS, Android, Windows, and Mac as long as iTunes is installed. Thai Apple Music users believe that the sound quality of Apple Music is better than that of Spotify and JOOX. Nonetheless, Apple Music is only popular amongst iOS
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users who have iTunes in their devices. Non-iOS users are unlikely to use Apple Music due to its mandatory subscription, which is considered as a major drawback. With its paid-only model, Apple Music can generate revenue solely from paid users and not from advertisements.
4.2 Key Findings from In-Depth Interviews with Non-Music Streaming Users
In-depth interviews were conducted on 15 non-music streaming users, consisting of five males and 10 females with the age range of 30 to 43 years. Regarding the educational level, 13 respondents completed a bachelor’s degree or above and the remaining two respondents had the level of education below a bachelor’s degree. The respondents can be divided into three groups based on their occupation: eight office workers, four business owners, and three freelancers. All respondents listened to music on a daily basis but did not use music streaming as their main channel.
Table 4.1 Key Findings from In-Depth Interviews with Non-Music Streaming Users
Topics Key Findings
Music Listening Time and The most popular time of which the Purposes respondents listen to music was during their commute, which was predominantly by personal car, and working hours. The majority of respondents listened to music in order to facilitate them to perform their daily activities.
“Having music as a background is better than having a quiet atmosphere.” – Bunthida, 39.
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Topics Key Findings
“I need to turn on music as a background. I cannot perform my duties without music as a background, regardless of whether I actually listen to it or not.” – Thanyathorn, 32.
“I listen to music all the time, whether while driving, taking a shower, or working. The only time that I do not listen to music is when I am in a meeting or conference.” – Narongpakorn, 32.
Music Listening Channels, Radio and YouTube were the main music Devices, and Preferences listening channels of the respondents. The majority of respondents perceived audio files, such as MP3 and CDs, as the alternative channels. The majority of respondents listened to music via car radios and smartphones, while some of the respondents listened to music via computers or laptops. Mainstream Thai music and international music were most preferred by the respondents.
“I listen to the radio because I do not need to select the songs by myself and I can discover new music. In addition, listening to DJs on the radio make it more enjoyable than just listening to the music.” – Thanyathorn, 32.
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Topics Key Findings
“I select my favorite song on YouTube and let it run automatically thereafter. If I do not like any song, I will just switch to a different song.” – Pattaraporn, 30.
“I have my own playlist on my smartphone. I regularly update my playlist by adding new songs to it, but not as often as daily.” – Off, 37.
Aware and Appeal All respondents were aware of music (Awareness and streaming services. JOOX was the music Recognition of Music streaming platform that can be most recalled Streaming Services) by respondents, followed by Spotify. The majority of respondents were first aware of music streaming services from the word of mouth (WOM), specifically their friends, as well as from the posts shared by their friends on Facebook’s newsfeed. The channel that was most preferred by the respondents for raising their awareness of music streaming services was Facebook, whether through their friends’ posts or advertisements. An alternative channel preferred by the respondents was radio, since they listened to music on the radio on a daily basis.
“I have heard of JOOX music streaming from a radio program. I can remember the brand because it was mentioned a lot and most of my friends are using it.” – Nantapat, 32.
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Topics Key Findings
“I have heard of JOOX from the younger generation, but not from friends at my age. Its name is similar to that of a car model, which makes me remember it.” – Ankan, 32.
Ask (Information Search Ask and Service Trial) and Many respondents had tried using music Barriers that Prevent Thai streaming services before, with the most Adults from Listening to popular platform being JOOX, followed by Music Via Online Spotify. Meanwhile, some respondents did Streaming not even bother to try using music streaming services. Only a few respondents kept the music streaming application that they downloaded and used such application for specific purposes, such as to create a playlist for offline listening when traveling to places where there is no radio signal or when using the public transport and to respond to friends’ music request. Barriers that Prevent Thai Adults from Listening to Music Via Online Streaming The respondents were satisfied with listening to music via their current channels, including YouTube, radio, and MP3. They did not see the benefits of switching to music streaming, since they were accustomed to their current channels.
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Topics Key Findings The respondents were not willing to pay for the full features of music streaming services, such as ads removal, full access to the music library, and music downloads. The majority of respondents listened to music via YouTube and downloaded their favorite songs in the form of MP3, which enabled them to have ownership in those songs. The respondents who had tried music streaming services decided to discontinue using them because they could not find their favorite songs from such services. Moreover, they did not want to try a different music streaming service; they simply returned to using their original channels.
“I downloaded JOOX once and decided to delete it because their songs did not correspond to my preferences and there were a lot of advertisements, which were annoying. It was difficult for me to find my favorite songs on JOOX.” – Nantapat, 32.
“I think YouTube has all features that are offered by Spotify, despite having a lot of advertisements. YouTube also partners with a video hosting company called VEVO, which has many of my favorite songs.” – Narongpakorn, 32.
“Although JOOX enables users to download music for offline listening, it is not as convenient as 4shared.” – Bunthida, 39.
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CHAPTER 5
CONCLUSIONS AND RECOMMENDATIONS
5.1 Conclusions
Thai adults prefer to listen to music for free Thai adults perceive that music should be free for everyone. Their current channels such as YouTube, radio, and MP3 allow them to listen to music at free of charge and they are satisfied with using such channels, despite having to watch or listen to the advertisements. Moreover, some of them download their favorite songs in the form of MP3 by searching on Google or pirate websites such as 4shared and YouTube downloader.
Thai adults trust WOM Thai adults are aware of music streaming services from word of mouth (WOM), specifically their friends, as well as from their friends’ posts on Facebook’s newsfeed. Their friendship circle encompasses a variety of people of different ages and interests. Some Thai adults are aware of music streaming services from younger friends, while some are acquainted to music streaming services from friends who are music experts.
Thai adults have low tolerance for technological complexities In general, Thai adults do not have high technological competency when compared to younger generation or technology experts. They have to spend a lot of time learning new technologies and encounter difficulties when using music streaming services. They will delete the music streaming application immediately if it does not meet their expectations, such as not being able to find their favorite songs.
Thai adults are disinclined to switch from their current channels Thai adults generally listen to mainstream music that can be found on their current channels, such as YouTube, radio, and MP3. They are already accustomed to such channels and discern no benefits of switching to a different channel unless the new channel offers a better solution to listening to music.
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5.2 Recommendations
According to the customer path of music streaming services, many Thai adults in this study forsake their path since the Ask stage (information search and service trial). They will discontinue using the music streaming service if it does not meet their expectation and will return to their current channels. Concerning the fact that each music streaming service has its own prominent features, it is difficult to tailor their features to match each customer’s needs. For instance, music streaming service providers prohibit customers from downloading songs in the form of MP3, since such act is considered as a breach of contract with music labels and may be subject to legal proceedings. Nonetheless, music streaming companies can still capture Thai adults by informing them of potential benefits and values they will receive.
Music streaming companies are unlikely to capture Thai adults by simply launching radio or online advertisements. The message should be communicated to Thai adults via direct communication from their friends and family, since Thai adults trust the message and information received from their friends and family.
Regarding the radio channel, music streaming companies can promote their services through DJs who host technology-related programs. The majority of Thai adults listen to the radio on a daily basis, especially while commuting, and spend a lot of time on the road due to the traffic. According to the results from in-depth interviews, Thai adults prefer to listen to the DJs when they discuss or update about the technology trends. Accordingly, DJs can provide brief information about music streaming that cannot otherwise be provided through advertisements due to the time constraint. DJs can inform listeners of the overview of music streaming services, including features, experiences, ways to download streaming applications, and where to obtain additional information. One of the respondents was aware of music streaming services from a radio program and tried the service immediately thereafter. Hence, promoting music streaming services through the use of DJs can be regarded as an effective method.
A more effective way of inducing Thai adults to use music streaming services is through word of mouth. Music streaming companies should also incorporate the concept of value co-creation in order to connect their services with Thai adults who do
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not use music streaming services and Thai adults’ intimates who use music streaming services.
Considering the concept of value co-creation, music streaming companies should encourage their current users to generate or share information about music streaming services to their circle of friends that encompasses non-music streaming users. For instance, users can share their favorite songs or lyrics on the social media. When non-music streaming users see their friends’ posts in the newsfeed, they will click on the link that will subsequently lead them to downloading music streaming services. This method has the tendency to induce non-music streaming users to move from the Ask stage to the Act stage or even the Advocate stage in the customer path, since listening to the songs shared by their friends serves as a means of which Thai adults can interact with their friends. Moreover, they will have a topic to discuss with their friends, such as inquiring about how to use the music streaming service, which simultaneously solves the problems of technological complexities; Thai adults tend to believe in and are patient enough to learn from their intimates.
In order for the music streaming companies to encourage their current users to act as their endorsers or advocates, they should provide those users with incentives. For example, JOOX offers a VIP upgrade to users who share songs on the social media for a limited period of time. Users can share their favorite songs as many times as they want to become VIP users. As a consequence, the majority of respondents were aware of JOOX services the most due to their friends’ posts on the social media. Spotify and Apple Music do not have this incentive.
In the event that music streaming companies do not want to provide incentives, they must rely on users who are in the Advocate stage of the customer path. These users are willing to be endorsers or advocates to promote the brand to their circle of friends. The majority of respondents in this research were aware of and expressed interests in music streaming services due to their friends who acted as brand advocates by explaining about the services with true passion and stories, including the drawbacks of music streaming services. Non-music streaming adult users trust WOM and are willing to switch to music streaming services as their primary channel.
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5.3 Future Research Suggestions
This research on “Barriers that Prevent Thai Adults from Listening to Music via Online Music Streaming” can be further studied to acquire more insightful findings. Suggestions for future research are detailed below.
A quantitative research to identify the segment of non-music streaming users and their preferred music streaming services. A qualitative research to study about the evolution of music industry in Thailand and its future outlook.
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REFERENCES
Books and Book Articles
Arayawutthikul, N. (2013). A Study of Attitude of Thai People toward Downloading Digital Music. Bangkok, Thailand: Faculty of Commerce and Accountancy, Thammasat University. Retrieved November 27, 2017
Kotler, P., Kartajaya, H., & Setiawan, I. (2017). The New Customer Path. In K. Philip, H. Kartajaya, & I. Setiawan, Marketing 4.0 (p. 64). Haboken: John Wiley & Sons, Inc. Retrieved March 28, 2018
Vichaithanaruks, W. (2015). Digital Music and Its Effects on the Thai Music Industry. Bangkok, Thailand: Faculty of Journalism and Mass Communication, Thammasat University. Retrieved November 27, 2017
Electronic Media
Arthur, C. (2016, December 26). Will Spotify kill the music download? Retrieved December 12, 2017, from theguardian: https://www.theguardian.com/business/2016/dec/26/spotify-music-download- apple-itunes-streaming-vinyl
Brand Buffet. (2017, January 19). Reveal music listening behavior of Thais and the successful secret of JOOX. Retrieved December 12, 2017, from Brand Buffet: https://www.brandbuffet.in.th/2017/01/joox-the-way-to-success-in-music- industry/
Debajyoti, P., & Triyason, T. (2017). User Intention towards a Music Streaming Service: A Thailand Case Study. The 9th International Conference on Advances in Information Technology (IAIT-2017), 1-16. Retrieved March 26, 2018, from https://knepublishing.com/index.php/Kne- Social/article/view/1393/3207
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Electronic Transactions Development Agency(EDTA). (2017). Thailand Internet User Profile 2017. Ministry of Digital Economy and Society. Bangkok: EDTA. Retrieved December 12, 2017, from https://www.etda.or.th/publishing-detail/thailand-internet-user-profile- 2017.html
Languepin, O. (2017, November 27). Thailand 4.0, What Do You Need To Know ? Retrieved December 12, 2017, from Thailand Business News: https://www.thailand-business-news.com/economics/54286-thailand-4-0-need- know.html
Leesa-Nguansuk, S. (2017, January 19). JOOX sees future in live music streaming. Retrieved October 6, 2017, from Bangkok Post: Technology: https://www.bangkokpost.com/tech/local-news/1182633/joox-sees-future-in- live-music-streaming matemate. (2017, November 9). Interview with Pavit Jitrakorn of GMM Grammy about music industry based on big data. Retrieved November 27, 2017, from Brandinside: https://brandinside.asia/interview-phawit-chitrakorn-gmm-music/
Positioning. (2018, February 23). JOOX is positioning itself as second screen. Retrieved March 26, 2018, from Positioning: https://positioningmag.com/1158396 siwarotemarketeer. (2018, February 22). The Academy. Retrieved March 26, 2018, from Marketeer: https://marketeeronline.co/archives/11800
Wanut. (2017, August 18). Music Streaming is coming, 50% of music industry happens on digital . Retrieved January 20, 2018, from Marketeer: http://marketeer.co.th/archives/127813
Wanut. (2017, October 09). When playlist does not be just music gathering place but TASTE of listeners. Retrieved January 20, 2018, from Marketeer: http://marketeer.co.th/archives/132575
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APPENDIX
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APPENDIX A
IN-DEPTH INTERVIEW GUIDE
General Demographic Information
1. Introduce yourself – name, age, level of education, and occupation 2. Daily lifestyles (weekdays/weekends)
Music Listening Behaviors
3. What time do you listen to music? 3.1. What make you listen to music at that time? 4. Which channels/devices do you listen to music from? (and for how long?) 4.1. Why do you not listen to music from other channels/devices? 4.2. What is your most favorite channel/device? 5. What is your music preference? (mainstream or independent) 5.1. What influence you to listen to this kind of music? 6. Explain your style of listening to music (personal playlist, according to DJ, or random). 6.1. Why playlist? Why DJ? 6.2. How do you get information about the music you listen to?
Customer Path of Music Streaming Services (Aware, Appeal, Ask, Act, Advocate)
7. (Aware) Have you heard of music streaming before? 8. (Aware) Where/which channel did you hear about music streaming? 8.1. Which channel is the best at providing you with information about music streaming? Please state your reasons. 9. (Appeal) Which brand can you recall? 9.1. Why can you remember this brand?
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10. (Ask) Have you researched more information about music streaming? 10.1 If yes, from which source? Please state your reasons. 10.2 If no, why not? 11. (Ask) Have you tried using music streaming services before? 11.1 If yes, what do you like and dislike about music streaming services? 11.2 If no, why not? 12. (Act) What factors dissuade you from using music streaming as your main music listening channel? 12.1 Why do these factors matter to you? 13. (Act) What factors induce you to continue listening to music via the channel(s) mentioned above? 13.1 Why do these factors matter to you? 13.2 Are there any elements that you dislike regarding those channels? 14. (Act) What factors influence you to use music streaming as your main music listening channel?
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BIOGRAPHY
Name Mr. Suppatin Thippayawat
Date of Birth May 11, 1990
Educational Attainment 2017 – 2018: Master’s Degree Program in Marketing (MIM), Thammasat University
2008 – 2012: Bachelor’s Degree in Automotive Design and Manufacturing Engineering (ADME), International School of Engineering, Chulalongkorn University
Work Experiences Assistant Manager, A.C.B. Engineering Co., Ltd.
Wireline Field Engineer, Schlumberger Overseas S.A.
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