Understanding Spotify Premium Subscription Intention Among Generation Z: The Moderating Role of Perceived Price in the Technology Acceptance Model

Abstract

This study is motivated by the relatively low conversion rate of users from free to premium music streaming services in Indonesia, despite Spotify's dominant position in the global music streaming market. The research examines the subscription behavior of Generation Z consumers in the Solo Raya region toward Spotify Premium. Specifically, this study aims to investigate the effects of perceived ease of use and perceived usefulness on subscription intention, with perceived price serving as a moderating variable. A quantitative research approach was employed using a survey of 210 respondents selected through purposive sampling. The collected data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) with SmartPLS 4 software. The findings reveal that both perceived ease of use and perceived usefulness have positive and significant effects on subscription intention. However, the moderation analysis indicates that perceived price weakens the relationships between perceived ease of use and subscription intention as well as between perceived usefulness and subscription intention. These findings suggest that although users perceive Spotify Premium as easy to use and beneficial, a high or unfavorable price perception remains a significant barrier that diminishes Generation Z consumers' intention to subscribe. Therefore, adopting a more competitive pricing strategy is essential to maximize the effectiveness of the application's functional attributes in encouraging premium subscription adoption.