Analysis of Customer Behavior Factors on Subscription-Based Music Services

Piracy is a problem that has been faced by various companies, one of which is music service software. Even though piracy gives a benefit to consumers, the losses obtained by the producer cannot be ignored. To overcome these problems, there are music services that can provide services easily and cheaply for consumers, commonly called the Subscription Based Music Service (SBMS). Although there is a service that can replace pirated products (SBMS), there is no guarantee that consumers will use it. This study aims to determine the factors that influence consumers in using SBMS music services. To achieve that, the Structural Equation Modeling method is used with AMOS software. The research was conducted in two countries, Indonesia and Germany with the aim to find out whether or not different countries affect consumer behavior. From the results of research in Indonesian and German respondents, the most influencing factor in the desire to use SBMS is the interest in the application. It can be concluded that the more music users know the service features and services provided by SBMS, the music users will be encouraged to use SBMS.


Introduction
Indonesia has a huge population of growth each year. According to Head of Badan Kependudukan dan Keluarga Berencana Indonesia (BKKBN), Surya Chandra Surapaty, population growth in Indonesia reached 1.49%, equivalent to 4.5 million people each year. On the other hand, population growth accompanied by increasing public income will encourage the Indonesian economy to become better [1]. It is known that economic growth in Indonesia in quarter II-2017 against quarter II-2016 experienced a growth of 5.01% [2].
High economic growth in Indonesia is influenced by several economic sectors. One sector that has a significant impact on the economic sector is the Creative Economy sector. This sector has a rapid increase in the Gross Domestic Product (GDP) in the last six years. However, a different thing happened to one of the sub-sectors of the creative economy, the music industry. The Creative Economy Agency said that the contribution of music GDP to the creative economy in 2016 reached 0.48%, significantly different compared to the culinary subsector which contributed the largest GDP with the amount of 41.40% [3].
In order to discuss this obstacle, National Music Day discussion is organized by Asosiasi Artis, Penyanyi Dan Pemusik Indonesia (PAPPRI) on March 9, 2017, it was mentioned that there were three problems faced by the Indonesian music industry, namely Participation from government, the absence of old age guarantees for musicians Indonesia and the vulnerability of music piracy to musicians [4]. According to the International Federation of the Phonographic (IFPI), music piracy continues to increase. 40% of music listeners access without permission. This number increased by 35%. In order to combat piracy, the music industry has changed its sales business model using the Subscription Based Music Service strategy [5].
Subscription Based Music Servicing (SBMS) is a channel for distributing music services through streaming, internet radio broadcasts, and downloads. SBMS is an affordable alternative service and an important channel for the music industry to distribute their work online to other electronic devices that are increasingly easily connected digitally and globally. This concept has been used widely in several countries. One example of a country that has succeeded in implementing it is the German State. Germany has a piracy rate of less than 2% [6]. In addition, there are other countries that have implemented the SBMS concept but still have a high level of piracy. An example is Indonesia, which is the country that has the highest piracy rate in Asia [7]. It can be concluded that the existence of an alternative SBMS does not guarantee that music users will use it [5].

The Problem
Based on the description explained in the background above, the formulation of the problem that can be concluded is the increasing number of consumers using pirated music services, this will have an impact on the music industry's low GDP for the creative economy, even though SBMS music services have provided a solution for music users who want to listen to music legally easily.
Based on a preliminary study, it was found that the reason most consumers use pirated music services is that it does not cost 55%. Another reason is that the access is easier, influenced by the environment and not too familiar with non-pirated online music services. While the most reason consumers intend to use SBMS music services is because freedom in accessing music is 36.7%. Another reason is because of good sound quality, respect for music creators, and the awareness that using pirated music services is wrong.

The Objective
Based on the formulation of the problem above, the purpose of this study is to know the difference in customer behavior of music application users towards Subscription-Based Music Service in Indonesia and Germany.

Research Method
To achieve the objectives of this study (analyzing the factors that influence the intention of using SBMS), 7 dimensions are employed, namely the economic benefit (ECON), hedonic benefit (HED), moral judgment (MOR), interest in music (IM), involvement in application (IA), and Willingness to try SBMS.
The conceptual model is a model diagram that shows the relationship between a variable and other latent variables based on a previous hypothesis. A good conceptual model is a model that can describe specific events, situations, attitudes, beliefs or behaviors that can influence other situations and make an interest in giving influence. Fig. 1 is the conceptual model developed by [5]. The model was adopted in this study because it had similar cases. The model is used to determine the factors that influence the desire to use SBMS services.
In Fig. 1 three variables influence the willingness to try SBMS, namely interest in music, Involvement to application, and attitudes towards online piracy. Interest in music is considered to influence the desire to use SBMS because of the higher one's interest in music, the higher the desire to get almost unlimited music services provided by SBMS [8]. In addition, involvement in the application is used because previous research states that knowledge of a product/service is the main determinant of consumers in making decisions [9]. Attitudes towards online piracy are used because attitude is the best predictor of intention or desire [10]. Attitudes towards online piracy are influenced by three variables, namely hedonic profits, economic benefits, and moral judgment [11,12]. Then in this study, the researcher adds a variable Perceived magnitude of consequences (PMC) which influenced attitudes towards online piracy.
The perceived magnitude of consequences, explains things that will be felt by an individual when making a decision. In the case of attitudes towards pirated music services, consumers will consider what is gained when using pirated music services, with possible fines and penalties for violating copyright law [13]. This variable has a significant influence on the attitude of an individual in certain situations [14]. McCorkle et al (2012) in their study found that there is a relationship between the risks felt by the use of pirated digital goods [15]. Coyle et al (2009) also found that music downloads did not know the known risks of doing music piracy [16]. The indicators used in this study were taken from the research of Borja et al [13] entitled 'The Effect of Music Streaming Services on Music Piracy among College Students'.

Fig. 1. Conceptual Model
Based on the explanation, this study builds 7 hypotheses which will be analyzed using the SEM method • Hypothesis 1: Economic benefits will positively influence attitudes towards digital piracy. • Hypothesis 2: Hedonic benefits will positively influence attitudes towards digital piracy. • Hypothesis 3: Moral judgement will negatively affect attitudes towards digital piracy. • Hypothesis 4: The perceived magnitude of consequences will negatively affect attitudes. • Hypothesis 5: The attitude towards online piracy will negatively affect willingness to try SBMS. • Hypothesis 6: Interest in music will positively influence willingness to try SBMS. • Hypothesis 7: Involvement in the application will positively influence willingness to try SBMS.

Confirmatory Model Analysis
The results of the confirmatory model test in Table 3 and Table 4 show that there are 2 fits index values that fall into the marginal fit category, namely TLI and CFI in both countries. Marginal fit is the condition of the suitability of the model under good fit but can be analyzed because it is still close to the good fit. Furthermore, Table 3 and Table  4 shows that the model has 2 fit index values which are categorized as moderately fit, namely GFI and AGFI in both countries. Moderate fit is a condition of the suitability of the model under the marginal fit, but can still be analyzed because it is still in acceptable criteria. 2 fit index values are in the category of a good fit, namely CMIN / DF and RMSEA. From the explanation, it can be concluded that the structural model can produce the expected level of estimation [17].

Structural Equation Modelling
In this study, the bootstrap method was used due to the normality test performed on both respondents (Indonesia and Germany) indicating the value of the critical ratio from skewness exceeded the 0.05 level, which meant that the data was abnormal. The bootstrap technique is a resampling procedure where the original sample is treated as a population. Hypothesis testing is based on the bootstrap technique with several bootstrap samples of 250 and a 90% corrected confidence bias. From the test results using bootstrap, if the lower and upper values do not include a value of 0, then the hypothesis proposed in the study can be accepted. The recapitulation of the results of the hypothesis can be seen in Table 5. German respondents because there is a value of 0 in the range between the lower and upper.
The hypothetical results of Indonesian respondents indicate that the advantages in terms of cheap prices provided by pirated music will trigger music users to use pirated music, this is because music users are more concerned with prices than the quality of service. On the other hand, in Indonesian respondents, the cheap price benefits provided by pirated music are not a trigger factor for music users to use pirated music.
The results of research on Indonesian respondents are in line with research from research by [5] which states that economic benefits will positively influence attitudes towards digital piracy. This happens because SBMS certainly cannot compete with pirated music services in terms of economy (price). Unlimited services and free of charge provided by pirated music services are not comparable to subscription music services that require regular payments. Although the required fees are relatively not large, music users do not think too much about the quality of pirated music services that are below the quality of SBMS because music users consider prices more. These results are in line with the research of [18] and [19]. Different results were obtained in research on German respondents, economic benefits did not significantly influence attitudes towards digital piracy. This happens because the regulations regarding piracy in Germany are very strict [6] so that the economic benefits provided by pirated music services will have no effect because of the regulations governing them.

Hypothesis 2
The results of the Indonesian respondents' output from The hypothetical results of Indonesian and German respondents also show that the pleasure felt by music users when using pirated music will trigger them to use pirated music. This feeling of excitement arose because there was an assumption that using pirated music services was the same as helping the pirated music industry to defeat large industries that it felt did not meet the needs of low-income people.
The results of the research on Indonesian respondents and German respondents are in line with the results of research conducted by [5] stating that hedonic benefits will positively influence attitudes towards digital piracy. Consumers consider using pirated services to be wise in terms of using money. They assume there is no need to spend money to just listen to music services. In addition, consumers use pirated services because they feel greater satisfaction and pleasure than those provided by the subscription service. This is a trigger for the growth of behavior that tends to use pirated services. The results of this study are in line with the research of [12] and [20].

Hypothesis 3
The results of the Indonesian respondents' output from AMOS 22.0 software using the bootstrap technique showed a lower value of 0.01 and upper value of 0.163, while the results of the German respondents' output from the AMOS 22.0 software using the bootstrap technique showed a lower value of -0.309 and upper value 0.143. Based on these results, it can be concluded that hypothesis 3 is accepted in Indonesian respondents because there is a value of 0 between the lower and upper of the output of the bootstrap method, while hypothesis 3 is rejected in German respondents because there is a value of 0 in the range between the lower and upper.
The hypothetical results of Indonesian respondents indicate that music users in Indonesia consider the use of pirated music to be unethical, this assumption is a deterrent factor for music users to use pirated music. In contrast, German respondents did not consider that the use of pirated music was unethical because it turned out that the assumption was covered by the acceptance of such actions in the community.
The results of research by [5] are in line with the results of Indonesian respondents so it can be concluded that moral considerations will negatively affect attitudes towards digital piracy. The results of this study are in line with the research of [5] which states that moral considerations will negatively affect attitudes toward digital piracy. This shows that music users have a strong belief that piracy is a wrong decision and unethical to do. The results of this study are in line with research conducted by [21] and [22]. Different results were obtained in German respondents. The results of research on German respondents are not in line with the research of [5] which states that moral considerations will negatively affect attitudes towards digital piracy. Although a consumer has a strong belief that using pirated music is unethical, consumers still have the intention and the possibility to use pirated music services, if illegal piracy of services, is usual and accepted in the social environment of the consumer. The results of this study are in line with the research conducted by [23].

Hypothesis 4
The results of the Indonesian respondents' output from the Hypothesis results in Indonesian respondents show that music users in Indonesia consider the use of pirated music to be risky because of heavy sanctions for users of pirated music, which is a deterrent factor for music users to use pirated music services. Conversely, German respondents did not consider the risks given because the pirated music was widely spread on the internet and can be accessed anonymously (without knowing who is accessing pirated music).
The fourth hypotheses are accepted in the research of Indonesian respondents so that it can be concluded that the magnitude of the consequences felt by users will negatively affect attitudes towards digital piracy. This shows that using pirated music services is an activity that has serious consequences for the community so that music users will tend to consider the disadvantages that will be gained when using pirated music. The results of this study are in line with the research conducted by [24]. However, different results were obtained in the German research respondents. The magnitude of the consequences felt by users does not significantly influence attitudes towards digital piracy. This happens because there are always internet users who can always provide pirated music through links that are easily spread through social media. If one link is detected and successfully deleted, another link will appear quickly to provide pirated services. With access to links that are very easy to obtain through social media and always there, the magnitude of the consequences that consumers feel for using pirated music services will have no effect. The results of this study are in line with research conducted by [25] and [26].

Hypothesis 5
The results of the Indonesian respondents' output from AMOS 22.0 software using the bootstrap technique showed a lower value of -0.128 and upper by 0.101, while the results of the German respondents' output from the AMOS 22.0 software using the bootstrap technique showed a lower value of -0.333 and upper at -0.076. Based on these results, it can be concluded that Hypothesis 5 is accepted in German respondents because there is a value of 0 between the lower and upper of the output of the bootstrap method, while Hypothesis 5 is rejected in Indonesian respondents because there is a value of 0 in the range between the lower and upper.
Hypothesis results in German respondents indicate that users who consider the use of pirated music are a good thing and use, it will hinder the desire of music users to use pirated music services. In contrast, Indonesian respondents who are accustomed to using pirated music do not necessarily want to use subscription music (SBMS).
In Indonesian research, the fifth hypothesis was rejected so that it can be concluded that attitudes towards digital piracy did not negatively affect the desire to use SBMS services. The results of this study are not in line with research from [5] which states that attitudes towards digital piracy negatively affect the desire to use SBMS services. Indonesian consumers are accustomed to using pirated and original goods simultaneously as long as both are easy to obtain so that attitudes towards pirated music will not necessarily provide a negative relationship to the desire to use SBMS. The results of this study are in line with the research of Tjiptono & Triandewi (2012) [27]. The results of the study on German respondents showed results that were in line with the research of [5] so that it could be concluded that attitudes towards digital piracy negatively affected the desire to use SBMS services in German respondents. Attitude is one of the best predictors of behavior. Therefore, a positive attitude must be consistent with the behavior, while a negative attitude must hold someone to do certain behaviors. This research is in line with research conducted by [10] and [28].

Hypothesis 6
The results of the Indonesian respondents' output from Hypothesis results in Indonesian respondents indicate that consumers who have a keen interest in music tend to look for good quality music services so they can fulfill the desires of the respondents themselves. This triggers consumers with a high interest in music to try to use subscription music services (SBMS). In contrast, German respondents who have a high interest in music are not triggered to try to use subscription music services. The sixth hypothesis is accepted by Indonesian respondents. The results of this study are not in line with research from [5] which states that interest in music does not significantly influence the desire to use SBMS services. This happens because the more often someone uses music, the greater the intention to listen to music with specific goals in certain situations. To get a good music listening experience, SBMS music services will provide better features so that consumers who have more interest in music will prefer SBMS music services. The results of the research of Indonesian respondents are in line with the research of [29]. Furthermore, the results of research on German institutions actually provide results in line with [5]. Subscription music services that have high prices are a consideration for consumers, so even though subscription music services provide adequate features, prices are still a consideration for consumers.

Hypothesis 7
The results of the Indonesian respondents' output from the AMOS 22 showed a lower value of 0.524 and an upper value of 1.392. Based on these results, it can be concluded that Hypothesis 7 is accepted in Indonesian respondents and German respondents because both show a value of 0 between the lower and upper of the output of the bootstrap method.
Hypothesis results in Indonesian and German respondents indicate that music users who know the features in subscription music services tend to have the desire to try subscription music services. The advantages of subscribing to music services (unlimited access, personal playlist features and more) are attractive for music users to try.
From the results obtained in German and Indonesian respondents, the seventh hypothesis was accepted. The results of this study are in line with research from [5] which states that knowledge and knowledge of SBMS services will positively influence the desire to use SBMS services. In this study it was found that the more music users knew and were interested in SBMS, the more likely the music users would use it. Product involvement and knowledge of a service have been used in previous research and it is stated that the more involved and knowledgeable consumers are about service, the higher the desire to use the service. The results of this study are in line with the research conducted by [7].

Conclusion
The conclusions obtained from the Customer Behavior Factor for Subscription-Based Music Services are as follows.
In Indonesian and German respondents, the desire to use SBMS is built on factors of interest in music, interest in applications and attitudes towards pirated music services, then the attitude towards pirated music services is influenced by economic benefits, hedonic benefits, moral considerations and the magnitude of the consequences felt.
Based on the results of research on Indonesian respondents, economic profit factors, hedonic benefits have a significant positive effect on attitudes towards pirated music services, while moral and large considerations of the perceived consequences provide a significant negative effect on attitudes towards pirated music services. Furthermore, in the desire factor to use SBMS, interest in applications and interest in music have a significant positive effect while attitudes towards pirated music services. This shows that the more music users know and understand an SBMS, the greater the desire to use the music service.
Slightly different results were obtained in the study of German respondents, economic benefits, moral considerations and perceived magnitude of the effect that has no significant effect on attitudes towards pirated music services, while hedonic benefits have a significant positive effect. In the desire to use SBMS, interest in applications and provide a significant positive effect, attitudes towards pirated music services have a significant negative effect, while interest in music has a nonsignificant effect. This shows that the more music users know and understand an SBMS, the greater the desire to use music services, and the more music users respond to pirated music services negatively, then music users will be encouraged to use SBMS.
From the results of research in Indonesian and German respondents, the most influencing factor in the desire to use SBMS is the interest in the application. It can be concluded that the more music users know the service features and services provided by SBMS, the music users will be encouraged to use SBMS [5].

Future Research
This study only focuses on the customer behavior of music users on SBMS without providing recommendations to institutions that manage SBMS. It would be better if further research could focus the research on one SBMS so that it could find out weaknesses and strengths in accordance with certain SBMS and then be able to provide clear recommendations.
This study is only limited to knowing the differences in the results given between German and Indonesian respondents. Subsequent research can be conducted with the aim of generalizing the results of the study, so that the results of the study can be widely used.
This study was limited to the number of respondents who were not balanced between Indonesian and German respondents due to limited access to the German State. Future studies should use a large number of respondents so that they can reach the assumption of normality.