Assessing the Economic Potential of Music Streaming in an Emerging African Market: A PLS-SEM Analysis

Abstract

This paper assesses the economic potential of music streaming in a developing African economy. It aims to know whether, in emerging African countries, the economic value of music streaming can significantly improve the world’s music market revenue growth. Hence, the study uses two marketing theories, product and marketing concepts, to conceptualize a hypothesized model based on survey data from Nigeria. Specifically, it achieves its objective by analyzing the factors that correlate with premium music streaming using the Partial Least Square Structural Equation Modelling (PLS-SEM). Our findings suggest that music sampling and consumer attitude are crucial for determining purchase intention and premium streaming. Additionally, we find that stringent anti-piracy measures and low streaming costs can influence optimal music purchase intention and premium music streaming behavior. Overall, while the study fosters an understanding of the economic potential of music streaming in emerging African markets, its evidence supports the literature with valuable insights for decision-makers.