As Spotify files to go-public in the New York Stock Exchange in February 2018, amid recent sustained usercount growth

including
in the Southeast Asia region, and apparent shifting consumer preference from one-time payment of digital music towards the
streaming subscription model, it would seem to be a good time to investigate Indonesian consumer preferences & habits
regarding music.

Over the years even here in Indonesia several local brick-n-mortar music store chains have significantly contracted in size, if they
haven’t outright gone out of business. Meanwhile music streaming services such as Spotify and JOOX have become increasingly
familiar to Indonesian consumers.

And what about Indonesian music streaming services, such as Langit Musik and MelOn, are they competitive? And what about
other sources of music: CD’s, cassette tape, FM radio, digital piracy/bootleg?

Survey conducted by DailySocial.id in cooperation with JakPat Mobile Survey Platform on February 2018.

1
 AGE
> 45 2,30%

GENDER
40-45 3,38%

36-39 5,88%

30-35 17,95%

26-29 20,56%

65,73% 34,27% 36,98%

20-25

16-19 11,97%

< 16 0,97%
TOTAL RESPONDENTS: 1955

2
 Q1. Do you listen to music streamed through the Internet? Q2. How often do you listen to streaming music (whether free or pay-to-play) in
the last six (6) months?

NO; 12%

YES; 88% 51,05%

Total Respondents: 1955

26,08%

11,58% 11,29%
Almost 90% of respondents listen to streaming music regularly within the last
six months. And of those regular listeners, most (51.05%) listen to between 1
to 14 hours of streaming per week. We can pretty much say that streaming Less than 1 hour Between 1 to 14 Between 14 to 28 more than 28
music has gone mainstream in Indonesia. At least among smartphone per week hours per week hours per week hours per week
owners. Total Respondents: 1718

4
 Q4. Do you currently use a FREE digital music streaming service from the
following providers? (Multiple answers permitted)

Q3. Do you currently subscribe to a pay-to-play streaming music service?

None of these services 10,65%

BandCamp 3,84%

HypeMachine 4,42%

NO; 48%
ShoutCast 4,77%
YES; 52%
iHeartRadio 7,16%

SoundCloud 26,43%

Google Play Music - streaming radio 51,69%

Total Respondents: 1718

JOOX 68,16%

Total Respondents: 1718

5
 Q5. Do you currently subscribe to a PAID digital music streaming service from
the following providers?

51.86% of respondents subscribe to paid music streaming, so Indonesian

None of these 2,47% consumers are definitely at least beginning to pay for music streaming
services.
Other paid online music streaming service 7,74%
The two top-of-mind paid music streaming services in Indonesia, based on
8tracks 6,29% our survey, are JOOX (at 70.37%) and Spotify (at 47.70%). One interesting to
note is Deezer at 7.74%, where Deezer began their marketing campaign in
Deezer 7,74%
Indonesia somewhere around early 2010, and although they apparently still
12,35%
have some paying customers it seems to be not that many. Local players are
MelOn
also still hanging on, if perhaps barely, with Langit Musik (28.51%) and MelOn
Apple Music 16,50% (12.35%)

SoundCloud 19,75% As for free music service there’s JOOX at 68.16%. This may also perhaps
influence how JOOX is currently the most subscribed paid music streaming
LangitMusik 28,51% service in Indonesia, along with their aggressive preinstallation/bundling on
Indonesian smartphones and their aggressive radio/print advertising
Spotify 47,70% campaign.

JOOX 70,37%

Total Respondents: 891

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 Q6. What consideration made you choose those paid streaming services? Q7. How long have you been subscribed to a paid music
streaming service?

Not any of these reasons 1,01%

More than 2 years 7,97%

I was attracted by their ads on

19,64%
television/radio/billboard/print media
Between 1 year to 2 years 17,17%
The app was bundled with my smartphone
20,20%
when I bought it

Between 6 months to one year 29,97%

All my friends use the service 25,81%

Free access from my cellphone/internet

service provider 56,12% Less than 6 months 44,89%

They have the most complete song

catalogue 87,77%
Total Respondents: 891

Total Respondents: 891

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 Q8. If you do not subscribe to paid streaming music, what/is are your reason(s)?

87.7% of respondents say they choose paid music

Other reasons, but not including reasons streaming due to the completeness of the service’s music
3,87% catalogue. And 56.12% began subscribing because the
already mentioned here
streaming app was preinstalled on their smartphone.

Other reasons
The music available exclusively through paid
8,22%
streaming, are all uninteresting for me.
The cost in data/Internet service for
streaming is too large for me.
The subscription cost for streaming music is
economically unreachable for me.
The songs available through paid streaming,
are all the same with what I can get for free.
10,40% As for why some choose not to subscribe to streaming
music, at 51.39% the most cited reason is because
respondent feel that music subscription feels like a bad
spend or feels wasteful for them. Coming in close at 47.04%,
respondents feel that what is available through free
streaming is already more or less the same as what’s
available on paid streaming.
28,90%
Of the 51.86% of respondents that are subscribed to paid
streaming, 44.89% of them have been subscribed for only 6
34,46% months or less. This means that most paid streaming
subscribers in Indonesia are new subscribers. The market is
definitely still growing.
47,04%

Paying a subscription for music streaming is

wasteful/a bad spending for me. 51,39%

Total Respondents: 827

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 Q9. Have you ever listened to 'conventional' radio stations through web- Q10. If yes, how much time on average do you spend listening to FM radio
streaming/online-streaming, within the past 6 months? through web-streaming, within the past six months?

NO; 45%

YES; 55%
52,47%

35,23%
Total Respondents: 1955

8,20%
4,10%
FM radio stations in Indonesia have been live-streaming their on-air program
Less than 1 hour Between 1 to 14 Between 14 to 28 more than 28
through the Web for several years now. And Indonesians do listen to FM radio
per week hours per week hours per week hours per week
stations streaming on the Web; more than half of our respondents in fact (54.88%).
And of those listening to FM radio streaming, 52.47% listen for around 1 to 14 hours Total Respondents: 1073
per week.
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 Q11. Have you ever bought a music CD/cassette tape within the Q12. If yes, where did you buy the CD/cassete?
past 6 months?

Through other means, but not including any of 5,16%

these mentioned

I HAVE Through other means 9,93%

NOT; 47%
At a music CD website (such as demajors.com, 16,65%
etc.)

Order through social media (such as Instagram, 18,01%

Facebook, Twitter, Kaskus, LINE etc.)
I HAVE;
At an E-Commerce marketplace/website (such as 21,91%
53% Tokopedia, Lazada)

Total Respondents: 1955 At a fast-food restaurant (such as KFC, Texas 25,12%

Chicken)

At a superemarket/minimarket (such as Carrefour, 32,42%

Indonesian consumers do still buy music CDs and cassette tapes. And our Giant, Alfamart, Indomaret etc.)
respondents mostly buy them at traditional music stores (65.14%). Some also buy
at supermarkets & minimarkets (32.42%), and some do buy at fast-food restaurants At an ordinari music store (such as Disc Tarra, 65,14%
Duta Suara, etc.)
(25.12%). Selling CD’s at fast-food restaurants is a gimmick started at around 2005
at a time when CD sales were beginning to get into a really bad slump and it seems
to continue today. Total Respondents: 1027

On the other hand though buying CDs at online websites account for only 16.65%,
even lower than sales through social media at 18.01%. Buying at E-Commerce
websites are higher still at 25.12%. 10
 Q13. Have you ever bought music in the form of one-time digital download
(such as in .mp3, .flac, or .aac format) within the past six months?

I have, from Amazon 6,80%

I have, from another digital music service 23,73%

provider Consumers still buy one-time digital music downloads today, with 59.44%
of respondents reporting having bought a one time digital download within
the past six months.
I have, from iTunes 23,84%
Most of these respondents bought from Google Play Music at 32.33%.

I have, bought from Google Play Music 32,33%

No never 40,56%

Total Respondents: 1955

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 Q14. Have you ever bought a book, film, or music *in digital form* (not physical
form) from any of the following services? (Sept. 2017 & Feb. 2018

6,39%
Microsoft Windows Store 8,37%

7,67%
Steam Store 7,52% Last year we asked respondents whether they have ever
bought digital goods through several services online. The
9,16% percentage seems to have not shifted significantly much
Amazon compared to last year, with the Google Play Store still the
11,13% 2018 2017
top-of-mind online digital goods store for Indonesian
consumers at 47.06% this year. And this includes music
10,95%
Apple iTunes store purchases.
11,13%

Another digital music/book/film service site 17,75%

19,70%

Never, not from any of them 39,59%

42,15%

Google Play store

47,06%
45,39%

Total Respondents: 1955 12

Q15. Within the last six months, have you ever direct-download an .mp3 music Q16. If yes, how many .mp3 song files have you downloaded in the past six
file from an "unofficial source"? months?

I HAVE 6,54%
More than 100 song files
NOT; 19%

13,72%
21 to 100 song files

11 to 20 song files 25,86%

I HAVE;
81% 53,88%
1 to 10 song files

Total Respondents: 1955

Total Respondents: 1574

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Q17. In the past six months, have you ever exchanged music files via instant Q18. Do you like to listen to pirated music in YouTube?
messaging/chat apps?

11,00%
I HAVE I don't like to listen to songs on YouTube
NOT; 33%

19,54%
I like listening to pirated songs on YouTube

I HAVE; I listen to music on YouTube, but *not* 69,46%

67% pirated music

Total Respondents: 1955

Total Respondents: 1955

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It seems Indonesians do still obtain pirated & bootleg music through the Internet, with 80.51% of respondents
reporting having download directly from pirate blogs & websites & 4shared archives etc., within the past six
months. That said though, most of them (53.88%) have downloaded at most 1 to 10 .mp3 files in that six-month
period.

This apparently also includes sharing music via instant messaging (WhatsApp, LINE, etc.) at 67.11% of them.

Respondents also listen to plenty of music on YouTube but tend to mostly avoid pirated music (69.46%).

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Indonesian consumers are definitely quite familiar with digital music streaming today, perhaps aided by how
technology today is at a point where audio streaming is quite economical on a bandwidth per monetary-expenses
calculation for perhaps most Internet consumers. This has also lead to consumers increasingly considering for-
pay a-la-carte music streaming services.

That said only barely over 50% of Indonesian consumers pay for streaming music, and this percentage seems to
still be growing. The market is looking good, in our opinion, and still has room to grow.

Local musicians and music labels/management are also starting to understand that more people consume
popular music through digital than through radio, and are actively pursuing this opportunity. Obviously, considering
how many Indonesian musicians are publishing on Spotify and Joox, today.

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