VALUE CO-CREATION BY USERS OF MUSIC STREAMING SERVICE: THE CASE OF SPOTIFY IN INDONESIA

• Main Author: Ukhtia Panduputri, Taffy
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/67050
• Institution: Institut Teknologi Bandung

Music streaming service is currently the mainstream media consumption for music in the digital age. They offer experience through the technological means of control, curation, sharing, and exploring music from their platform. This evolution drives consumers to a more central role in their value creation. However, there has been scant attention to investigate the process of value co-creation by users of music streaming service, especially in the perspective of service science, particularly in Indonesia. This research aims to explore the process of how the users of a music streaming service co-create value, and what values are co-created in the process. Using a mono-method case study towards experienced millennial Spotify Indonesia users, qualitative in-depth interviews are conducted to gain insights regarding how their practices, opinions, and experience in using music streaming service. According to service science model, value co-creation process between provider and customers occurred in four phases: co-experience, co-definition, co-elevation, and co-development. The four phases are in upwards motion until service or value are co-created. This research found that in the co-experience phase, users begin to gain interest, sign up to the platform, and respond to value proposition offered by Spotify through playlisting, soundtracking, controlling, music discovery, and connecting with other people. The co-definition phase is indicated by the development of internal model regarding Spotify, comparison with other music streaming alternatives and competitors, as well as the establishing of familiarity and ties with the platform. In the co-elevation stage, users begin to get fluent at the use, subscribing to premium service, and begin to form comments, complaints, and expectation and evaluation. However, the co-development phase in the case of Spotify user is still unobserved because users are not directly interacting with Spotify the provider for their comments and insights. In the case of Spotify, users co-create value in the dimensions of functional, price, social, and emotional value. Functional value is reflected in Spotify’s benefits such as convenience, ease of use, reliability, control, catalogue variety, and algorithm. Price value is regarding the low cost of premium subscription and users’ general dislike towards ads. Social value is realized by socially connecting with people, both in social media and real life. Meanwhile, emotional value is connected to the act of music listening to evoke emotions, feeling of excitement, and gratification from social validation. This research expands on the empirical analysis of service science conceptual model using the underutilized four-phase value co-creation model between customers and providers. It emphasizes users’ role in creating and determining value in their subjective experience. There is also the practical finding of value-in-exchange still being a major factor impacting users’ decision-making process. Limitations from this study is addressed and direction for future research is provided. Keywords: service science, Spotify, streaming service, value co-creation, user