Advertising Appeals and Willingness to Pay for a Music Streaming Service

Indianapolis, IN

Even with the rise of music streaming services, illegal downloads are costing the music industry $2.7 billion per year. The purpose of this study is to determine what types of advertising appeals will be most effective at enhancing the willingness to pay for a streaming service, thereby decreasing music piracy. This study examined college students’ willingness to pay for a music service after being exposed to a digital advertisement that employed either a rational, fear, and guilt appeal for a fictitious music streaming service. It was expected that music involvement, or the level at which students perceive, consume, and interact with music in their daily lives, would moderate both their response to the appeal and their willingness to pay for the service. It was hypothesized that people exposed to a rational advertising appeal will be more willing to pay for a music streaming service than people exposed to an emotional advertising appeal. People exposed to guilt-based emotional appeal will be more willing to pay for the music service than a fear-based emotional appeal. In addition, people who have high involvement with music will be more willing to pay for a music streaming service when faced with a rational appeal than an emotional appeal. People who have low involvement with music will be more willing to pay for the music service when faced with an emotional appeal rather than a rational appeal.