Consumer Preferences Towards Commercial Music Downloads

Demand for commercial music download is still marginal compared to the total market volume of the music industry. One reason can be found in the lack of consumer orientation on part of the suppliers. Important attributes of commercial music download platforms that may impinge on the degree of consumer orientation include price, use of DRM, sound quality, repertoire (genres, artists, songs) and range of offer, payment system and pre-listening options. An adaptive conjoint analysis (n = 527) based on consumer preferences towards these attributes was carried out. As a result, eight consumer segments were identified, offering the opportunity for a tailored product and service differentiation based on the varying relative importance of the attributes. Moreover, a significant gap in total utility between existing platforms such as iTunes and the ideal platform could be identified for all consumer groups. Advices for the design of more suitable products are given.