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Changing Their Tune: How Consumers' Adoption of Online Streaming Affects Music Consumption and Discovery

Marketing Science, Forthcoming

64 Pages Posted: 23 May 2016 Last revised: 10 May 2017

Hannes Datta

Tilburg University

George Knox

Tilburg University

Bart J. Bronnenberg

Tilburg University, CentER

Date Written: May 9, 2017

Abstract

Instead of purchasing individual content, streaming adopters rent access to libraries from which they can consume content at no additional cost. In this paper, we study how the adoption of music streaming affects listening behavior. Using a unique panel data set of individual consumers’ listening histories across many digital music platforms, adoption of streaming leads to very large increases in quantity and diversity of consumption in the first months after adoption. Although the effects attenuate over time, even after half of a year, adopters play substantially more, and more diverse, music. Relative to music ownership where experimentation is expensive, adoption of streaming increases new music discovery. While repeat listening to new music decreases, users’ best discoveries have higher play-rates. We discuss the implications for consumers and producers of music.

Keywords: digital distribution, online streaming, entertainment industry, music consumption, variety

Suggested Citation

Datta, Hannes and Knox, George and Bronnenberg, Bart J., Changing Their Tune: How Consumers' Adoption of Online Streaming Affects Music Consumption and Discovery (May 9, 2017). Marketing Science, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2782911

Hannes Datta (Contact Author)

Tilburg University ( email )

Tilburg, 5000 LE
Netherlands

George Knox

Tilburg University ( email )

Warandelaan 2
Tilburg, 5000 LE
Netherlands
+31 13 466 8778 (Phone)
+31 13 466 3219 (Fax)

HOME PAGE: http://www.tilburguniversity.edu/webwijs/show/?uid=g.knox

Bart Bronnenberg

Tilburg University, CentER ( email )

Warandelaan 2
Tilburg, 5037 AB
Netherlands
+31 13 466 8939 (Phone)
+31 13 466 8354 (Fax)

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