Factors of Consumer Choice on the Market of Music Streaming Services

The development of new technologies has influence on the consumption pattern in many industries. Music industry is not an exception. Nowadays there are many ways how people can listen to music: CD, DVD, different sites for digital purchases, pirate websites and streaming services. Streaming services are becoming more popular every day. It changes the whole structure of music industry. The main purpose of the research is to identify the factors of consumer choice on the market of music streaming services among the students in Russia. There are no studies that analyze this problem on Russian market yet. The first step of the research showed that three the most popular streaming services in Russia are Apple Music, Vkontakte, and Yandex.Music. Then in the second step we use 3 logit-models based on these streaming services to identify factors that consumers are guided by when they make a choice. The achieved results show that people, who use streaming services every day, and people, who prefer to use the family tariff, choose Apple Music. Moreover, if the sum of expenditures on hobbies increases, people are more likely to use Apple Music. Then, if consumers use streaming services less than every day, they are more likely to choose Vkontakte and increasing of expenditures on hobbies leads to changing this streaming service. Consumers, who value the function “Music recommendation”, use Yandex.Music.