Paper Type
Completed Research Paper
Abstract
Freemium is intended to be a promising method that allows content providers to earn money now that Web 2.0 users feel entitled to free software. However, industries that use freemium, like the music industry, still struggle to cover their costs. Despite its practical relevance, no studies have investigated why customers are willing to pay for a service that can also be used for free. Based on the Theory of Planned Behavior, we developed a research model to identify antecedents of consumers’ intentions and attitudes towards the premium version of music services when a free version is available. The results of our survey with 157 participants show that using the free version has a negative impact on users’ intention to pay for the premium version. Our practical implications indicate that music service providers should focus on the premium product and introduce a time-limited freemium.
Recommended Citation
Wagner, Thomas M. and Hess, Thomas, "What Drives Users to Pay for Freemium Services? Examining People’s Willingness to Pay for Music Services" (2013). AMCIS 2013 Proceedings. 16.
https://aisel.aisnet.org/amcis2013/eBusinessIntelligence/GeneralPresentations/16
What Drives Users to Pay for Freemium Services? Examining People’s Willingness to Pay for Music Services
Freemium is intended to be a promising method that allows content providers to earn money now that Web 2.0 users feel entitled to free software. However, industries that use freemium, like the music industry, still struggle to cover their costs. Despite its practical relevance, no studies have investigated why customers are willing to pay for a service that can also be used for free. Based on the Theory of Planned Behavior, we developed a research model to identify antecedents of consumers’ intentions and attitudes towards the premium version of music services when a free version is available. The results of our survey with 157 participants show that using the free version has a negative impact on users’ intention to pay for the premium version. Our practical implications indicate that music service providers should focus on the premium product and introduce a time-limited freemium.