Exploring Willingness-to-Pay (WTP) for Spotify Premium across Legal and Illegal Access Channels among Tech-Savvy Generation in Indonesia

Abstract

This study aims to analyze the factors influencing Willingness-to-Pay (WTP) for both legal and illegal Spotify Premium services, as well as to compare differences in willingness to pay between the two among the tech-savvy generation in Indonesia. The background of this study stems from the prevalence of illegal premium account sales through third parties, driven by high official subscription prices and financial constraints. The conceptual framework of this study was developed from the Theory of Planned Behavior (TPB), which integrates the variables Perceived Value, Price Fairness, Ethical Concern, and Risk Perception. A quantitative approach was used with a purposive sampling technique through the distribution of an online questionnaire to 320 Spotify users residing in Jakarta, Surabaya, and Bandung. Data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS) via SmartPLS 4 and the non-parametric Wilcoxon Signed-Rank Test with SPSS. The results of the study demonstrate that Perceived Value and Price Fairness have a positive and significant influence on the formation of consumer Attitude. Furthermore, Attitude, Perceived Behavioral Control, and Ethical Concern were found to have a positive influence on WTP for legal services while having a negative influence on WTP for illegal services. Risk perception also significantly reduces willingness to pay for illegal channels. Comparative test results confirm a highly significant difference between willingness to pay for legal and illegal channels, with consumers continuing to place a higher value on official channels. In conclusion, even when faced with cheaper alternatives, tech-savvy consumers are willing to pay more for legal services in exchange for data security, service stability, and legitimacy.