Streaming technology and its impact on the music industry A logistic regression analysis of willingness to pay for digital music and premium subscriptions to streaming music platforms

Abstract

When it comes to digital transformation, one of the fastest and most radical revolutions ever happened, is that of the record industry. Part of this transformation took place thanks to the introduction of a digital technology, well-known today under the name of streaming. This research project aims to investigate how streaming as digital technology has upset and is still changing the music industry and the record market. Following an in-depth study of the previous literature on the subject, this study focuses on addressing the relationship between the spread of music streaming platforms and piracy, through illegal downloads on online P2P sites. The analysis is supported by the implementation of a survey that sought the willingness to pay for digital music, in particular for a subscription to streaming platforms. A sample of 849 people aged between 18 and 35 years, both Italian and foreign, was analyzed. The methodology used for the data analysis is based on an empirical analysis using a binary logistic regression model. This study, through the survey carried out and the subsequent analysis of the data collected, aims to establish a relationship among different variables that influence the willingness to pay (WTP) for a premium subscription to a music platform and the willingness to abandon (WTA) the use of P2P sites of illegal download leading to a greater understanding of the phenomenon of piracy in order to be able to reduce its use and spread, which has been threatening the entire record industry and the revenues of record labels and artists for centuries.