INVESTIGATING MARKET POTENTIAL FOR STREAMING SUBSCRIPTION MODEL IN EMERGING ECONOMIES : A CASE OF NIGERIA

Abstract

Building on two marketing theories: the product and marketing concept, this study conceptualizes how music sampling, consumers’ income and attitude affect streaming subscription in Nigeria. The aim is to test whether efficient market for streaming subscription could be developed in emerging economies and contribute to growth in the world digital music markets. The study used a binomial logistic regression to analyse 230 observations obtained from a survey data to estimate a conceptual framework. Results show that music sampling positively affect streaming subscription. Conversely, consumers’ income and attitude are both not significant. Subsequently, sensitivity analysis shows that, employed young consumers (18-24 years of age) may not adopt subscription service, but young unemployed consumers have the tendency to embrace the model to cushion unemployment effect on their wellbeing. The implication is that subscription model seems inefficient and yet lucrative for streaming business in Nigeria. A similar research results in other emerging economies may indicate that expected level of revenue growth in the world digital music market is not yet feasible. Hence, a focussed and efficient copyrights management organizations may be required for a potential future. Keywords: consumers’ attitude; consumers’ income; logistic regression; marketing concept; music sampling; streaming subscription service.