Music subscription case study
investigating the behavioral changes of consumers upon subscription price changes
DOI:
https://doi.org/10.58445/rars.1874Keywords:
music, Elasticity, economicsAbstract
This paper includes an analysis of the elasticity of various well-known music platforms, such as Spotify, Pandora, and YouTube. Elasticity in economics means the impact that a product change has on a change in consumer behavior. In the context of this paper, I analyze how price changes of music subscriptions affect, if any, consumers' demand. All three music platforms include different music subscription programs with differing prices. Consumers may change their behavior as a result of the price increase, such as canceling subscriptions and choosing alternative products. I explore this change in behavior by documenting changes in the share of paid subscribers by music companies. In addition, this paper also explores other impacts and potential spillover effects of subscription changes.
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