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EMAC 2024 Annual


When Consumers Reflect Business Models: The Influence of Digital Platform Remuneration Models on Consumers’ Decision Making and Market Outcomes
(A2024-119690)

Published: May 28, 2024

AUTHORS

Levent Uyar, University of Hamburg; Rouven Seifert, University of Rostock; Michel Clement, University of Hamburg, Germany; Sönke Albers, Kühne Logistics University; Patrik Wikstrom, Queensland University of Technology; François Moreau, Université Paris‐Nord; Frederik Jensen, Université Paris‐Nord; Ola Haampland, Inland Norway University of Applied Sciences

ABSTRACT

Music industry stakeholders debate about the allocation of streaming revenue with a focus on pro rata (PRRM) and user-centric (UCRM) remuneration models but ignore the consumers’ perspective. In this study, we investigate consumers’ response to PRRM and UCRM and monetary consequences for right holders. In Study 1, an online experiment (n=318) indicates that consumers have a strong preference for a UCRM increasing the attractivity and adoption intention of the streaming service. In Study 2, two choice based conjoint experiments (n=2,000) indicate that especially consumers with high volume and variety in music consumption are interested in a UCRM. Priming on fairness increases this choice intention. In Study 3, a simulation of payouts to right holders based on market data from a major streaming service (n= 207,587,552 streams) reveals substantial revenue reallocation e.g., for the urban and classical genres and indicates that the effects vary across consumer clusters.