BARRIERS THAT PREVENT THAI ADULTS FROM

LISTENING TO MUSIC VIA ONLINE

MUSIC STREAMING

BY

MR. SUPPATIN THIPPAYAWAT

AN INDEPENDENT STUDY SUBMITTED IN PARTIAL

FULFILLMENT OF

THE REQUIREMENTS FOR THE DEGREE OF

MASTER OF SCIENCE PROGRAM IN MARKETING

(INTERNATIONAL PROGRAM)

FACULTY OF COMMERCE AND ACCOUNTANCY

THAMMASAT UNIVERSITY

ACADEMIC YEAR 2017

COPYRIGHT OF THAMMASAT UNIVERSITY

Ref. code: 25605902040178IOA

BARRIERS THAT PREVENT THAI ADULTS FROM

LISTENING TO MUSIC VIA ONLINE

MUSIC STREAMING

BY

MR. SUPPATIN THIPPAYAWAT

AN INDEPENDENT STUDY SUBMITTED IN PARTIAL

FULFILLMENT OFTHE REQUIREMENTS FOR THE DEGREE

OF MASTER OF SCIENCE PROGRAM IN MARKETING

(INTERNATIONAL PROGRAM)

FACULTY OF COMMERCE AND ACCOUNTANCY

THAMMASAT UNIVERSITY

ACADEMIC YEAR 2017

COPYRIGHT OF THAMMASAT UNIVERSITY

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Independent Study Title BARRIERS THAT PREVENT THAI ADULTS

FROM LISTENING TO MUSIC VIA ONLINE

MUSIC STREAMING

Author Mr. Suppatin Thippayawat

Degree Master of Science Program in Marketing

(International Program)

Major Field/Faculty/University Faculty of Commerce and Accountancy

Thammasat University

Independent Study Advisor Professor Paul G. Patterson, Ph.D.

Academic Year 2017

ABSTRACT

As Thailand is entering the 4.0 era, the government has begun to actively engage

in the development of infrastructure in preparation for the emergence of new

technologies. Under the influence of smartphones and 4G internet, along with the

introduction of music streaming services, the music-listening behavior of Thai people

have shifted towards music streaming channels. Nonetheless, it is still apparent that the

majority of Thai adults aged 30 years or above are still listening to music via traditional

channels.

This research had the primary objectives to gain a better understanding of the

barriers that prevent Thai adults from using music streaming services, while enabling

these companies to develop appropriate strategies to educate and capture customers.

This study employed a qualitative research method by conducting in-depth interviews

on 15 non-music streaming users aged 30 years or above via face-to-face or telephone.

The questions in the interview script were semi-structured questions. Moreover, both

purposive and snowball sampling methods were exercised to acquire the targeted

respondents.

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The key findings of this research provided a profound insight into the barriers

that prevent Thai adults from listening to music via online music streaming services.

According to the results, such barriers include the fact that they were satisfied with their

current music channels and they were not willing to pay for using the full features of

music streaming services. Likewise, the technological complexities of downloading

and using music streaming services further discouraged many Thai adults from using

such services. With that respect, it is significant for music streaming companies to

educate Thai adults on how to use music streaming services and create awareness of

the advantages of streaming services by employing the concept of value co-creation.

Keywords: Music streaming, Thai adults, JOOX, Spotify

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ACKNOWLEDGEMENTS

Firstly, I would like to express my deepest gratitude to my advisor, Professor

Paul G. Patterson, Ph.D., who provided me with valuable advices throughout the entire

period of this research from topic selection to report submission. He encouraged me to

pursue the topic of my interest, while seeking more knowledge on marketing. His

advices and constructive feedback had unquestionably shaped this research to embrace

rich knowledge and insights.

Secondly, I would like to express my gratitude to all respondents who

cooperated and shared their stories during the interview. This research would not have

been successfully completed without their kind cooperation.

Lastly, I would like to thank all my friends and family who have always been

there for me, as well as supporting and encouraging me with their unconditional love

to complete this master’s degree to the best of my ability.

Mr. Suppatin Thippayawat

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TABLE OF CONTENTS

Page

ABSTRACT (1)

ACKNOWLEDGEMENTS (3)

LIST OF TABLES (6)

LIST OF FIGURES (7)

LIST OF ABBREVIATIONS (8)

CHAPTER 1 INTRODUCTION 1

1.1 Problem Statement and Research Purpose 1

1.2 Scope of Research 2

1.3 Terminologies 2

1.4 Research Objectives 3

CHAPTER 2 REVIEW OF LITERATURE 4

CHAPTER 3 RESEARCH METHODOLOGY 12

3.1 Research Methodology 12

3.1.1 Secondary Research 12

3.1.2 Primary Research 12

3.2 Sampling Method 13

3.3 Data Collection 13

3.4 Data Analysis 14

3.5 Theoretical Framework 14

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3.6 Research Limitations 15

CHAPTER 4 RESULTS AND DISCUSSION 16

4.1 Key Findings from Secondary Research 16

4.2 Key Findings from In-Depth Interviews with 18

Non-Music Streaming Users

CHAPTER 5 CONCLUSIONS AND RECOMMENDATIONS 23

5.1 Conclusions 23

5.2 Recommendations 24

5.3 Future Research Suggestions 26

REFERENCES 27

APPENDIX 29

APPENDIX A: In-Depth Interview Guide 30

BIOGRAPHY 32

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LIST OF TABLES

Tables Page

4.1 Key Findings from In-Depth Interviews with Non-Music Streaming Users 18

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LIST OF FIGURES

Figures Page

3.1 Theoretical Framework 15

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LIST OF ABBREVIATIONS

Symbols/Abbreviations Terms

B2B Business to business

B2C Business to customer

WOM Word of mouth

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CHAPTER 1

INTRODUCTION

1.1 Problem Statement and Research Purpose

Nowadays, it is evident that internet and technology are progressing and

developing at a remarkably fast pace, which subsequently creates new opportunities to

the world. Many countries, including Thailand, have begun to incorporate technologies

to enhance the quality of life of citizens. As Thailand is entering the 4.0 era that

emphasizes on smart industry, smart city, and smart people (Languepin, 2017), the

government heavily allocates the budget to infrastructure development. As a result,

Thailand is now equipped with broad network coverages in all provinces, while the

speed of network has continually increased and the price of 4G data services has

become affordable.

The development of network coverages in Thailand has disrupted the behaviors

of Thai people in listening to music. In the past, Thai people would listen to music via

radio or audio files. Nonetheless, the emergence of music streaming services has

enabled people to listen to music from anywhere at any time as long as they have access

to internet. Yet, in the absence of internet access, people can still listen to music offline

from their previously downloaded playlist (Arthur, 2016). Accordingly, the number of

music streaming service users is growing on account of the increase in the number of

smartphone users and the affordability of data services in terms of price.

Thai people who adopt the use of music streaming services the fastest are those

below 30 years of age. These young adults grew up in the digital era and can effortlessly

learn or acquire new technological skills. They generally seek for new technologies to

enhance their quality of life and are quick to adopt the modern way of listening to music,

specifically via music streaming platforms. Furthermore, they enjoy using features of

music streaming services and sharing opinions amongst their community.

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Nonetheless, it is evident that not all Thai people, particularly adults aged above

30 years, adopt music streaming services. Despite the fact that they are smartphone

users and have access to internet, they still listen to music from traditional sources and

have their own reasons of not switching to music streaming platforms. Regardless, they

do not express their opinions as freely as those under 30 years of age, which further

impedes the identification of factors that prevent them from switching to music

streaming platforms.

Accordingly, this research emphasized on studying the barriers that prevent

Thai adults from switching to music streaming platforms. The results of this research

will facilitate music streaming companies to acquire better understanding of the reasons

that prevent Thai adults from using their services and enable them to develop strategies

to educate and capture those adult customers.

1.2 Scope of Research

Contemporary Topic in Applied Marketing Self-Study Project

This research will study the barriers that prevent Thai adults from listening to

music via online music streaming. The research will focus on three major music

streaming platforms in Thailand, namely JOOX, Spotify, and Apple Music. Data will

be solely collected from non-music streaming users. This research does not consider

the users of independent music streaming platforms as music streaming users.

1.3 Terminologies

Music streaming users:

People who listen to music via music streaming platforms as their main channels.

Non-music streaming users:

People who do not listen to music via music streaming platforms as their main channels.

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1.4 Research Objectives

1) To identify barriers that prevent Thai adults from listening to music via online

music streaming platforms.

2) To determine appropriate approaches to educating Thai adults to listen to music

via online music streaming platforms.

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CHAPTER 2

REVIEW OF LITERATURE

A review of literatures was conducted as a part of secondary research in order

to gain an insight into the present overview of issues pertaining to music streaming.

Sources of literatures include online published articles and books from Thammasat

University’s library. Insights and relevant information were summarized as follows.

Industry Trends

Digital Music and Its Effects on the Thai Music Industry (Vichaithanaruks, 2015)

Music streaming in Thailand is rapidly growing and such upward trend is

anticipated to persist for another 5 to 10 years. Such increased popularity of music

streaming is accounted for by the changes in consumer behavior and technological

advancement. Alternatively, the number of music downloads has decreased at the rate

of 20-30% whereby iTunes is expected to be the only survivor amongst the music

download platforms.

JOOX’s Positive Outlook on Live Music Streaming (Leesa-Nguansuk, 2017)

There are numerous opportunities in the Thai music industry, specifically in the

aspect of online music streaming. Such opportunities emerge from the rise in demand

for 4G mobile broadband and the continual increase in the number of smartphone users,

which is currently found to be above 40 million people. Furthermore, the music

listening behaviors of Thai people have shifted towards music streaming platforms, as

reflected by 80% of the population in Thailand who use music streaming applications.

In 2016, JOOX – a music streaming service provider – had a total of seven million

active users. Such number is anticipated to reach 15 million active users in 2017. On

average, the amount of time spent by users on JOOX is 80 minutes per day.

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Music Streaming Trend (Wanut, 2017)

Music streaming encompasses a subscription to access unlimited songs. In

2015, the revenue from music streaming increased by 60.4%, while the revenue from

music downloads decreased by 20.5%. After taking into account both music streaming

and downloads, it is apparent that the total revenue of the music industry rose by 17.7%.

On the other hand, revenue from sales of CDs and vinyl records decreased by 7.6%.

Such observations implied that, in the future, people will no longer download songs or

albums or listen to music via traditional channels. Yet, the declining trend of CDs and

vinyl records does not indicate that they will become obsolete; rather, they will become

limited and hence premium.

Interview with Pavit Jitrakorn from GMM Grammy on the Music Industry in

Thailand (matemate, 2017)

The emergence of music streaming does not only impact consumer behaviors,

but also disrupt the business model of record companies that are faced with multiple

challenges, including the increased competition and the change in consumer behaviors.

The global music industry displays a similar trend to that of Thailand, i.e. digital

channels and music streaming are gaining popularity and account for 50% of the total

revenue of the music industry, whereas physical channels and music downloads are

continuously shrinking and generate only 34% of the total revenue. In addition, it is

found that 74% of Thai people who listen to music via online streaming do not care

about the record companies. As such, the majority of record companies have begun to

shift their focus from B2C to B2B by selling contents to music streaming service

providers. However, these record companies are unlikely to launch their own streaming

platforms due to a large number of existing players in the market with 90% of the

revenue generated from advertisements and 10% from premium subscription fees;

record companies believe that they will not be able to thrive in this highly competitive

market.

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JOOX’s Plan on Transforming into an Entertainment Platform (Positioning,

2018)

JOOX is planning to become more than just a music streaming service provider.

It has devised four missions to transform into an entertainment platform, comprising

of: 1) Produce radio programs; 2) Organize events; 3) Emphasize on karaoke feature;

and 4) Recruit new artists. Across its four missions, JOOX is currently focusing on

offering karaoke feature in its platform, concerning the fact that karaoke can connect a

large number of people together. With respect to the proposed karaoke feature of JOOX,

people can share their karaoke tracks online and those who get the most “likes” will be

displayed on JOOX’s karaoke chart.

Consumer Behaviors

A Study of the Attitudes of Thai People towards Downloading Digital Music

(Arayawutthikul, 2013)

Regarding the piracy issues, the majority of Thai people still download music

illegally despite the launch of the anti-piracy campaign. Nonetheless, Thai people have

gained more awareness on the piracy issues and are willing to support their favorite

artists and record companies, provided that it is effortless to do so and the copyright

acts in Thailand are more effective.

Thailand’s Internet User Profile 2017 (Electronic Transactions Development Agency

(EDTA), 2017)

On average, Generation X spends 5 hours and 48 minutes on internet during the

weekdays, which is 30 minutes higher than during the weekends. Moreover, Generation

X spends, on average, 1 hour and 54 minutes per day watching television shows or

movies or listening to music. It is also found that 46% of Generation X internet users

watch television shows or listen to music online.

On the contrary, baby boomers spend an average of 4 hours and 54 minutes on

internet during the weekdays, which is 42 minutes higher than during the weekends.

Similar to Generation X, baby boomers spend an average of 1 hour and 54 minutes per

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day watching television shows or movies or listening to music. Meanwhile, 33% of

baby boomers who are internet users watch television shows or listen to music online.

Customer Path (Kotler, Kartajaya, & Setiawan, 2017)

In this digital era, there are five stages of customer path, namely aware, appeal,

ask, act, and advocate. Yet, the path does not always follow the sequence. Details of

each stage are explained below.

In the Aware stage, customers passively receive information about brands from

advocacy, brand communication, and personal past experiences. In other words, they

may acquire information about a particular brand from their friends or family,

advertisements, or past experiences when they previously heard about the brand. The

keyword of this stage is “I know”.

In the Appeal stage, customers process the information or message they

received and select only a few brands of which they are attracted to as a consideration

set. The keyword of this stage is “I like”.

In the Ask stage, customers have become interested in the brand and are induced

to search for more information. They may seek for additional information about the

brand from their friends or family, or through the media such as customer reviews and

online forums. They may even acquire information directly from the brand, such as

through official website or product trial. The keyword of this stage is “I am convinced”.

In the Act stage, customers have received sufficient information to make a

purchasing decision. They may purchase the product or service online or at a physical

store and may request for after-sales support when the usage problem occurs. The

keyword of this stage is “I am buying”.

In the Advocate stage, a sense of brand loyalty is instilled in customers. During

this stage, customers adhere to the brand, repurchase the product or service, or even

recommend the brand to other people, i.e. they become the brand advocate. The

keyword of this stage is “I recommend”.

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When Playlists are Not Merely a Music Gathering Place, But the Taste of Listeners

(Wanut, 2017)

In the cassette era, music listeners recorded their favorite songs by using cassette

tapes as a storage tool. After that, they would share their choice of songs to other people

in the form of cassette tapes. However, the trend has shifted to sharing songs in the

form of playlists in response to the increased number of music streaming listeners.

Regardless, it is evident that the traditional music listening channels, specifically radio,

still survive in the digital era. According to the research of Nielsen in 2017, 72% of

music listeners still listen to the radio due to the availability of online radio channels

such as smartphones, websites, and applications and the potential to discover new

songs; 49% of music listeners discover new songs from the radio. Radio listeners

perceive that DJs enhance their experience of listening to music. Cars and homes are

the main places where people listen to music, while offices are less common because

they do not provide music listeners with the same level of privacy. On average, music

listeners have approximately three to four music listening devices, such as mobile

phones, tablets, computers, and car radios. Regarding the behaviors of people in

listening to music, they are somewhat intricate. Music listeners may listen to music on

the radio and switch to online streaming thereafter, or vice versa. One of the prominent

features of music streaming is the variety of playlists that can be tailored to meet the

needs of each music listener. Alternatively, radio has the advantage in the aspect of DJs

who can entertain and enhance the experience of music listeners. With that respect,

music streaming companies have the high potential of capturing radio listeners if they

hire skillful DJs to organize live programs on their platforms.

Users’ Intention Towards Music Streaming Services: A Case Study of Thailand

(Debajyoti & Triyason, 2017)

The scope of this research was limited to those who resided in Thailand and had

used music streaming services for three months or more. This research concluded that

the level of satisfaction and perceived enjoyment had an influence on the intention of

music streaming users. It was found that music streaming users solely emphasized on

the aspect of enjoyment and did not consider the utility or other benefits they might

receive from music streaming services. The higher the level of satisfaction, the higher

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the level of enjoyment experienced by users in listening to music via online streaming

services, which subsequently leads to an increase in the level of their intention to use

and pay for subscription. Moreover, the research found that users perceived music

streaming service providers as an important factor in terms of music collection. They

preferred to listen to the songs of both local and international artists. However, they did

not consider the song quality as an important element. The majority of users had the

intention to use music streaming services on a long-term basis. Accordingly, music

streaming service providers should develop strategies to enhance the users’ level of

enjoyment and satisfaction in order to sustain their services.

Music Listening Behaviors of Thai People and Key Success Factors of JOOX

(Brand Buffet, 2017)

JOOX has become successful in Thailand within only one year from its debut

in Thai market, whereby such success is supported by five main factors. Firstly,

listening to music is one of the popular activities of Thai people. JOOX entered Thai

market at the right timing during which the growth of mobile broadband and the number

of smartphone users were high. Across all JOOX users in Thailand, 82% of them prefer

Thai music, 15% prefer international music, and 3% prefer Asian music. Secondly,

JOOX has over five million songs in the music library, comprising of Thai,

international, and Asian songs. In addition, JOOX has collaborated with two mobile

phone operators in Thailand, namely AIS and DTAC, which enables customers of both

operators to try its services. Thirdly, JOOX attracts Thai customers by adopting the

freemium model (free and premium) in which users can download JOOX application

and listen to music at free of charge but are subject to pop-up advertisements and limited

features. To gain access to full features, users need to purchase the VIP account.

Fourthly, JOOX offers an array of features that allow users to download songs and store

them on mobile phones for offline listening, which saves their internet data usage.

Lastly, JOOX is owned by Tencent that has readiness in terms of financial capital. It

plans to become more than just a music streaming service provider by expanding its

online to offline services, such as organizing concerts, with the ultimate goal to position

itself as a music platform.

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Types of Music Streaming Subscribers (Siwarotemarketeer, 2018)

The increased coverage of internet connectivity, advancement of mobile

devices, and changes in home theater technology undoubtedly make subscriptions the

main revenue generator of streaming platforms. People subscribe to streaming services

in order to watch and listen to unlimited movies and music from anywhere at any time.

Accordingly, subscribers are the key determinant of the success of music streaming

companies, which must be captured by the companies in order to sustain their

businesses. Music streaming subscribers can be classified into four main types, as

follows:

1. Promotion Abuser is a subscriber who intends to use only the free trial and

will cancel the subscription immediately after the end of free trial. Music streaming

companies must therefore inform this type of subscriber of the benefits and privileges

they will receive from subscription, such as higher sound quality. Likewise, companies

should send appreciation messages to them upon their subscription in order to

strengthen customer relations and induce them to subscribe on a long-term basis.

2. New Subscriber is a promotion abuser who enjoys using the services and

thus converts into a new subscriber. Music streaming companies should provide

opportunities for this type of subscriber to express their opinions and rank the music.

Likewise, the companies should offer rewards and promotions, such as free temporary

VIP upgrade, in order to sustain their subscription and obtain feedback to improve the

services.

3. Active User is a subscriber who has been subscribing to music streaming

services for a long period of time and has strong attachment to the services. Music

streaming companies should thus provide them with new contents and special

privileges in return for their loyalty. At the same time, companies may conduct in-depth

interviews with active users to obtain recommendations, making them feel important

and valued while acquiring useful information for service improvement.

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4. Churned Subscriber is a subscriber who may not renew their subscription

after having been a subscriber for a long period of time and may want to switch to other

music streaming services. Nonetheless, this type of subscriber will continue to follow

news and information of their former music streaming service provider, such as

promotions. Accordingly, music streaming companies should provide churned

subscribers with positive messages to induce their repurchasing decision.

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CHAPTER 3

RESEARCH METHODOLOGY

3.1 Research Methodology

The research on “Barriers that Prevent Thai Adults from Listening to Music via

Online Music Streaming” emphasized on examining the behaviors, personal

experiences, and perceptions of non-music streaming users. A qualitative study in the

form of exploratory research was employed to acquire behavioral and psychological

insights. This study consisted of secondary research and primary research, as detailed

below.

3.1.1 Secondary Research

A secondary research was conducted to gain more understanding of the

foundation of the research topic. The sources of secondary research were as follows:

Music streaming service providers (JOOX, Spotify, Apple Music):

functions, pricing, and features.

Related literatures and reports from websites and library: definition of music

streaming, overview of the music streaming industry, music listening behaviors of Thai

people, and effects of music streaming services on Thailand.

Music streaming users’ stories, such as usage experiences, opinions, and

feedback, which were obtained from online forums such as Pantip.

3.1.2 Primary Research

In-depth Interviews

In-depth interview questions were developed from secondary research findings.

The objective of in-depth interviews was to understand the music listening behaviors

of non-music streaming users, as well as their experiences and perceptions. Other

information, such as lifestyles and music preferences, were also analyzed concerning

the fact that such information have an influence on the preferred music listening

channels of users. In addition, general demographic information were also studied. The

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findings of this research will facilitate music streaming companies to gain deeper

insights into the barriers that prevent non-music streaming users from listening to music

via online music streaming and identify appropriate approaches to educating non-music

streaming users. Interviews were conducted on 15 non-music streaming users. The

method of sampling is explained in the following section.

3.2 Sampling Method

This research employed both purposive and snowball sampling methods. The

purposive sampling method was initially used to acquire respondents who match the

criteria. Meanwhile, the snowball sampling method was subsequently used to inquire

qualified respondents to recruit potential respondents who pass the criteria. The criteria

in selecting in-depth interview respondents were as follows:

Demographics

Age: 30 years old and above

Residence: Bangkok, Thailand

Have access to internet (4G or above)

Smartphone user

Lifestyles

Have not used the three major music streaming platforms in Thailand (JOOX,

Spotify, and Apple Music) in the past three months.

Listen to music on a daily basis but do not use the aforementioned music

streaming platforms as the main channel (not more than once per week).

3.3 Data Collection

In-depth interviews were conducted on a total of 15 respondents during January

2018 to March 2018 by either a face-to-face or telephone interview according to the

convenience of each respondent. The respondents were informed of the research

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objectives prior to the interview. The duration of each interview was less than 30

minutes. Results were recorded and typed in an electronic form for further analysis.

The questions in the in-depth interviews were semi-structured questions (See

Appendix A: In-depth Interview Guide), which comprised of the following elements:

music listening behaviors and experiences, perceptions, demographics, and lifestyles.

Prompting and probing techniques were employed to acquire more insights and

clarification.

3.4 Data Analysis

The following steps were used to analyze qualitative data that were collected

from in-depth interviews.

1. Transcribe the recordings from in-depth interviews into electronic

documents.

2. Organize data, including cleaning, structuring, and familiarizing.

3. Interpret data, including coding, categorizing, and theme applying.

4. Recognize patterns from the interpreted data and verify such data.

5. Represent the data, including storytelling.

3.5 Theoretical Framework

The theoretical framework was employed to serve as a guidance for this

research. Independent variables consisted of demographics and behaviors of non-music

streaming users and attributes of music streaming services. Dependent variables

comprised of barriers that prevent Thai adults from listening to music via online

streaming.

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Figure 3.1 Theoretical Framework

3.6 Research Limitations

The sample of this research cannot represent the entire population of non-music

streaming users due to the use of non-probability sampling method. Moreover, the

sample size is considerably small as a result of time and budget constraints, which

cannot represent all demographic profiles of non-music streaming users.

Independent Variables

1. Demographic Factors

Age

Occupation

2. Behavioral Factors

Music listening time

Music listening channels

Music preferences

Music listening devices

Perception towards

music streaming services

Technological

competency

3. Music Streaming Services

Features

Pricing

Dependent Variables

Barriers that prevent

Thai adults from

listening to music via

online streaming

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CHAPTER 4

RESULTS AND DISCUSSION

4.1 Key Findings from Secondary Research

Listening to music is regarded as one of the most popular activities of Thai

people. Thai music is ranked first in terms of preference, followed by international

music and Asian music, respectively (Brand Buffet, 2017). There are a number of music

listening channels for Thai people to choose from, which can be classified into three

main groups. The first group consists of physical audio files such as vinyl records,

cassette tapes, CDs, and MP3 (Vichaithanaruks, 2015). The second group consists of

radio stations, including online radio stations such as radio applications and websites.

The third group consists of on-demand music services where users can access music

from anywhere at any time, such as YouTube and music streaming service providers

(JOOX, Spotify, and Apple Music).

However, the majority of Thai consumers are not willing to pay for listening to

music. Some believe that they should not be required to pay for listening to music and

that it should be free for everyone. Indeed, this group of consumers is not aware of the

capital, efforts, and time invested into producing a song. Alternatively, those who

discern the value of music or artists are found to be the only group of consumers who

purchase merchandises, such as CDs, to support their artists and acquire ownership in

that particular music or song.

In the past when the MP3 format became the mainstream, Thai consumers

illegally downloaded songs in the MP3 format for storage and ownership instead of

purchasing CDs or legal MP3 files from record companies. During such period, Thai

consumers had access to high speed internet and smart phones, which enabled them to

download and store MP3 files in an effortless manner.

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Upon the rise in the popularity of MP3 format, music streaming services

emerged and influenced the music listening behaviors of Thai people. Music streaming

services allow users to listen to music from anywhere at any time, as long as they have

a smartphone, tablet, or computer and internet access, while enabling users to download

music for offline listening. The downloaded music files can only be used and accessed

via the music streaming platform, which means that users have no ownership in the

downloaded songs. Music streaming service providers do not allow users to own music

but allow them to share their favorite songs to other people in the form of URL.

Music streaming service providers operate by adopting the freemium model, i.e.

a combination of free and premium versions. In the free version, users are subject to

advertisements and have limited access to the music library. On the contrary, in the

premium version, users can download music for offline listening and benefit from

higher sound quality with no advertisements.

The growth of the music streaming industry in Thailand is primarily accounted

for by the increase in the demand for 4G mobile broadband and number of smartphone

users, which currently exceeds 40 million people (Leesa-Nguansuk, 2017). As of

present, there are three main music streaming platforms in Thailand, namely JOOX,

Spotify, and Apple Music.

JOOX is regarded as the leading music streaming platform in Thailand,

followed by Spotify and Apple Music. According to Pantip online forum, Thai music

streaming users prefer JOOX services due to the relatively high availability of Thai

songs as compared to other streaming services. Likewise, JOOX also offers an array of

features, including lyrics, karaoke, and music videos – all of which enhance users’

engagement. Another popular music streaming platform in Thailand is Spotify, which

has the largest music library across all online streaming services and offers playlists

that are tailored by artificial intelligence to meet each individual user’s needs. Thai

users perceive that Spotify enables them to discover new songs easily. Apple Music is

also popular amongst Thai iOS users who use iPhones and iPads, although it can operate

on all platforms, including iOS, Android, Windows, and Mac as long as iTunes is

installed. Thai Apple Music users believe that the sound quality of Apple Music is better

than that of Spotify and JOOX. Nonetheless, Apple Music is only popular amongst iOS

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users who have iTunes in their devices. Non-iOS users are unlikely to use Apple Music

due to its mandatory subscription, which is considered as a major drawback. With its

paid-only model, Apple Music can generate revenue solely from paid users and not

from advertisements.

4.2 Key Findings from In-Depth Interviews with Non-Music Streaming Users

In-depth interviews were conducted on 15 non-music streaming users,

consisting of five males and 10 females with the age range of 30 to 43 years. Regarding

the educational level, 13 respondents completed a bachelor’s degree or above and the

remaining two respondents had the level of education below a bachelor’s degree. The

respondents can be divided into three groups based on their occupation: eight office

workers, four business owners, and three freelancers. All respondents listened to music

on a daily basis but did not use music streaming as their main channel.

Table 4.1 Key Findings from In-Depth Interviews with

Non-Music Streaming Users

Topics Key Findings

Music Listening Time and

Purposes

The most popular time of which the

respondents listen to music was during their

commute, which was predominantly by

personal car, and working hours.

The majority of respondents listened to music

in order to facilitate them to perform their

daily activities.

“Having music as a background is better than

having a quiet atmosphere.” – Bunthida, 39.

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Topics Key Findings

“I need to turn on music as a background. I

cannot perform my duties without music as a

background, regardless of whether I actually

listen to it or not.” – Thanyathorn, 32.

“I listen to music all the time, whether while

driving, taking a shower, or working. The only

time that I do not listen to music is when I am in

a meeting or conference.” – Narongpakorn, 32.

Music Listening Channels,

Devices, and Preferences

Radio and YouTube were the main music

listening channels of the respondents. The

majority of respondents perceived audio files,

such as MP3 and CDs, as the alternative

channels.

The majority of respondents listened to music

via car radios and smartphones, while some

of the respondents listened to music via

computers or laptops.

Mainstream Thai music and international

music were most preferred by the

respondents.

“I listen to the radio because I do not need to select

the songs by myself and I can discover new music.

In addition, listening to DJs on the radio make it

more enjoyable than just listening to the music.”

– Thanyathorn, 32.

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Topics Key Findings

“I select my favorite song on YouTube and let it

run automatically thereafter. If I do not like any

song, I will just switch to a different song.”

– Pattaraporn, 30.

“I have my own playlist on my smartphone. I

regularly update my playlist by adding new songs

to it, but not as often as daily.” – Off, 37.

Aware and Appeal

(Awareness and

Recognition of Music

Streaming Services)

All respondents were aware of music

streaming services. JOOX was the music

streaming platform that can be most recalled

by respondents, followed by Spotify.

The majority of respondents were first aware

of music streaming services from the word of

mouth (WOM), specifically their friends, as

well as from the posts shared by their friends

on Facebook’s newsfeed.

The channel that was most preferred by the

respondents for raising their awareness of

music streaming services was Facebook,

whether through their friends’ posts or

advertisements. An alternative channel

preferred by the respondents was radio, since

they listened to music on the radio on a daily

basis.

“I have heard of JOOX music streaming from a

radio program. I can remember the brand because

it was mentioned a lot and most of my friends are

using it.” – Nantapat, 32.

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Topics Key Findings

“I have heard of JOOX from the younger

generation, but not from friends at my age. Its

name is similar to that of a car model, which makes

me remember it.” – Ankan, 32.

Ask (Information Search

and Service Trial) and

Barriers that Prevent Thai

Adults from Listening to

Music Via Online

Streaming

Ask

Many respondents had tried using music

streaming services before, with the most

popular platform being JOOX, followed by

Spotify. Meanwhile, some respondents did

not even bother to try using music streaming

services.

Only a few respondents kept the music

streaming application that they downloaded

and used such application for specific

purposes, such as to create a playlist for

offline listening when traveling to places

where there is no radio signal or when using

the public transport and to respond to friends’

music request.

Barriers that Prevent Thai Adults from

Listening to Music Via Online Streaming

The respondents were satisfied with listening

to music via their current channels, including

YouTube, radio, and MP3. They did not see

the benefits of switching to music streaming,

since they were accustomed to their current

channels.

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Topics Key Findings

The respondents were not willing to pay for

the full features of music streaming services,

such as ads removal, full access to the music

library, and music downloads. The majority

of respondents listened to music via YouTube

and downloaded their favorite songs in the

form of MP3, which enabled them to have

ownership in those songs.

The respondents who had tried music

streaming services decided to discontinue

using them because they could not find their

favorite songs from such services. Moreover,

they did not want to try a different music

streaming service; they simply returned to

using their original channels.

“I downloaded JOOX once and decided to delete it

because their songs did not correspond to my

preferences and there were a lot of advertisements,

which were annoying. It was difficult for me to

find my favorite songs on JOOX.” – Nantapat, 32.

“I think YouTube has all features that are offered

by Spotify, despite having a lot of advertisements.

YouTube also partners with a video hosting

company called VEVO, which has many of my

favorite songs.” – Narongpakorn, 32.

“Although JOOX enables users to download music

for offline listening, it is not as convenient as

4shared.” – Bunthida, 39.

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CHAPTER 5

CONCLUSIONS AND RECOMMENDATIONS

5.1 Conclusions

Thai adults prefer to listen to music for free

Thai adults perceive that music should be free for everyone. Their current

channels such as YouTube, radio, and MP3 allow them to listen to music at free of

charge and they are satisfied with using such channels, despite having to watch or listen

to the advertisements. Moreover, some of them download their favorite songs in the

form of MP3 by searching on Google or pirate websites such as 4shared and YouTube

downloader.

Thai adults trust WOM

Thai adults are aware of music streaming services from word of mouth (WOM),

specifically their friends, as well as from their friends’ posts on Facebook’s newsfeed.

Their friendship circle encompasses a variety of people of different ages and interests.

Some Thai adults are aware of music streaming services from younger friends, while

some are acquainted to music streaming services from friends who are music experts.

Thai adults have low tolerance for technological complexities

In general, Thai adults do not have high technological competency when

compared to younger generation or technology experts. They have to spend a lot of time

learning new technologies and encounter difficulties when using music streaming

services. They will delete the music streaming application immediately if it does not

meet their expectations, such as not being able to find their favorite songs.

Thai adults are disinclined to switch from their current channels

Thai adults generally listen to mainstream music that can be found on their

current channels, such as YouTube, radio, and MP3. They are already accustomed to

such channels and discern no benefits of switching to a different channel unless the new

channel offers a better solution to listening to music.

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5.2 Recommendations

According to the customer path of music streaming services, many Thai adults

in this study forsake their path since the Ask stage (information search and service trial).

They will discontinue using the music streaming service if it does not meet their

expectation and will return to their current channels. Concerning the fact that each

music streaming service has its own prominent features, it is difficult to tailor their

features to match each customer’s needs. For instance, music streaming service

providers prohibit customers from downloading songs in the form of MP3, since such

act is considered as a breach of contract with music labels and may be subject to legal

proceedings. Nonetheless, music streaming companies can still capture Thai adults by

informing them of potential benefits and values they will receive.

Music streaming companies are unlikely to capture Thai adults by simply

launching radio or online advertisements. The message should be communicated to

Thai adults via direct communication from their friends and family, since Thai adults

trust the message and information received from their friends and family.

Regarding the radio channel, music streaming companies can promote their

services through DJs who host technology-related programs. The majority of Thai

adults listen to the radio on a daily basis, especially while commuting, and spend a lot

of time on the road due to the traffic. According to the results from in-depth interviews,

Thai adults prefer to listen to the DJs when they discuss or update about the technology

trends. Accordingly, DJs can provide brief information about music streaming that

cannot otherwise be provided through advertisements due to the time constraint. DJs

can inform listeners of the overview of music streaming services, including features,

experiences, ways to download streaming applications, and where to obtain additional

information. One of the respondents was aware of music streaming services from a

radio program and tried the service immediately thereafter. Hence, promoting music

streaming services through the use of DJs can be regarded as an effective method.

A more effective way of inducing Thai adults to use music streaming services

is through word of mouth. Music streaming companies should also incorporate the

concept of value co-creation in order to connect their services with Thai adults who do

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not use music streaming services and Thai adults’ intimates who use music streaming

services.

Considering the concept of value co-creation, music streaming companies

should encourage their current users to generate or share information about music

streaming services to their circle of friends that encompasses non-music streaming

users. For instance, users can share their favorite songs or lyrics on the social media.

When non-music streaming users see their friends’ posts in the newsfeed, they will click

on the link that will subsequently lead them to downloading music streaming services.

This method has the tendency to induce non-music streaming users to move from the

Ask stage to the Act stage or even the Advocate stage in the customer path, since

listening to the songs shared by their friends serves as a means of which Thai adults can

interact with their friends. Moreover, they will have a topic to discuss with their friends,

such as inquiring about how to use the music streaming service, which simultaneously

solves the problems of technological complexities; Thai adults tend to believe in and

are patient enough to learn from their intimates.

In order for the music streaming companies to encourage their current users to

act as their endorsers or advocates, they should provide those users with incentives. For

example, JOOX offers a VIP upgrade to users who share songs on the social media for

a limited period of time. Users can share their favorite songs as many times as they

want to become VIP users. As a consequence, the majority of respondents were aware

of JOOX services the most due to their friends’ posts on the social media. Spotify and

Apple Music do not have this incentive.

In the event that music streaming companies do not want to provide incentives,

they must rely on users who are in the Advocate stage of the customer path. These users

are willing to be endorsers or advocates to promote the brand to their circle of friends.

The majority of respondents in this research were aware of and expressed interests in

music streaming services due to their friends who acted as brand advocates by

explaining about the services with true passion and stories, including the drawbacks of

music streaming services. Non-music streaming adult users trust WOM and are willing

to switch to music streaming services as their primary channel.

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5.3 Future Research Suggestions

This research on “Barriers that Prevent Thai Adults from Listening to Music via

Online Music Streaming” can be further studied to acquire more insightful findings.

Suggestions for future research are detailed below.

A quantitative research to identify the segment of non-music streaming users

and their preferred music streaming services.

A qualitative research to study about the evolution of music industry in Thailand

and its future outlook.

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REFERENCES

Books and Book Articles

Arayawutthikul, N. (2013). A Study of Attitude of Thai People toward Downloading

Digital Music. Bangkok, Thailand: Faculty of Commerce and Accountancy,

Thammasat University. Retrieved November 27, 2017

Kotler, P., Kartajaya, H., & Setiawan, I. (2017). The New Customer Path. In K.

Philip, H. Kartajaya, & I. Setiawan, Marketing 4.0 (p. 64). Haboken: John

Wiley & Sons, Inc. Retrieved March 28, 2018

Vichaithanaruks, W. (2015). Digital Music and Its Effects on the Thai Music Industry.

Bangkok, Thailand: Faculty of Journalism and Mass Communication,

Thammasat University. Retrieved November 27, 2017

Electronic Media

Arthur, C. (2016, December 26). Will Spotify kill the music download? Retrieved

December 12, 2017, from theguardian:

https://www.theguardian.com/business/2016/dec/26/spotify-music-download-

apple-itunes-streaming-vinyl

Brand Buffet. (2017, January 19). Reveal music listening behavior of Thais and the

successful secret of JOOX. Retrieved December 12, 2017, from Brand Buffet:

https://www.brandbuffet.in.th/2017/01/joox-the-way-to-success-in-music-

industry/

Debajyoti, P., & Triyason, T. (2017). User Intention towards a Music Streaming

Service: A Thailand Case Study. The 9th International Conference on

Advances in Information Technology (IAIT-2017), 1-16. Retrieved March 26,

2018, from https://knepublishing.com/index.php/Kne-

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Electronic Transactions Development Agency(EDTA). (2017). Thailand Internet

User Profile 2017. Ministry of Digital Economy and Society. Bangkok:

EDTA. Retrieved December 12, 2017, from

https://www.etda.or.th/publishing-detail/thailand-internet-user-profile-

2017.html

Languepin, O. (2017, November 27). Thailand 4.0, What Do You Need To Know ?

Retrieved December 12, 2017, from Thailand Business News:

https://www.thailand-business-news.com/economics/54286-thailand-4-0-need-

know.html

Leesa-Nguansuk, S. (2017, January 19). JOOX sees future in live music streaming.

Retrieved October 6, 2017, from Bangkok Post: Technology:

https://www.bangkokpost.com/tech/local-news/1182633/joox-sees-future-in-

live-music-streaming

matemate. (2017, November 9). Interview with Pavit Jitrakorn of GMM Grammy

about music industry based on big data. Retrieved November 27, 2017, from

Brandinside: https://brandinside.asia/interview-phawit-chitrakorn-gmm-music/

Positioning. (2018, February 23). JOOX is positioning itself as second screen.

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https://positioningmag.com/1158396

siwarotemarketeer. (2018, February 22). The Academy. Retrieved March 26, 2018,

from Marketeer: https://marketeeronline.co/archives/11800

Wanut. (2017, August 18). Music Streaming is coming, 50% of music industry

happens on digital . Retrieved January 20, 2018, from Marketeer:

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TASTE of listeners. Retrieved January 20, 2018, from Marketeer:

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APPENDIX

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APPENDIX A

IN-DEPTH INTERVIEW GUIDE

General Demographic Information

1. Introduce yourself – name, age, level of education, and occupation

2. Daily lifestyles (weekdays/weekends)

Music Listening Behaviors

3. What time do you listen to music?

3.1. What make you listen to music at that time?

4. Which channels/devices do you listen to music from? (and for how long?)

4.1. Why do you not listen to music from other channels/devices?

4.2. What is your most favorite channel/device?

5. What is your music preference? (mainstream or independent)

5.1. What influence you to listen to this kind of music?

6. Explain your style of listening to music (personal playlist, according to DJ, or

random).

6.1. Why playlist? Why DJ?

6.2. How do you get information about the music you listen to?

Customer Path of Music Streaming Services (Aware, Appeal, Ask, Act, Advocate)

7. (Aware) Have you heard of music streaming before?

8. (Aware) Where/which channel did you hear about music streaming?

8.1. Which channel is the best at providing you with information about music

streaming? Please state your reasons.

9. (Appeal) Which brand can you recall?

9.1. Why can you remember this brand?

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10. (Ask) Have you researched more information about music streaming?

10.1 If yes, from which source? Please state your reasons.

10.2 If no, why not?

11. (Ask) Have you tried using music streaming services before?

11.1 If yes, what do you like and dislike about music streaming services?

11.2 If no, why not?

12. (Act) What factors dissuade you from using music streaming as your main music

listening channel?

12.1 Why do these factors matter to you?

13. (Act) What factors induce you to continue listening to music via the channel(s)

mentioned above?

13.1 Why do these factors matter to you?

13.2 Are there any elements that you dislike regarding those channels?

14. (Act) What factors influence you to use music streaming as your main music

listening channel?

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BIOGRAPHY

Name Mr. Suppatin Thippayawat

Date of Birth May 11, 1990

Educational Attainment 2017 – 2018: Master’s Degree Program in Marketing

(MIM), Thammasat University

2008 – 2012: Bachelor’s Degree in Automotive Design

and Manufacturing Engineering (ADME), International

School of Engineering, Chulalongkorn University

Work Experiences Assistant Manager, A.C.B. Engineering Co., Ltd.

Wireline Field Engineer, Schlumberger Overseas S.A.

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