Substitutability and complementarity of broadcast radio and music streaming services: The millennial perspective

Abstract

Digital technologies have redefined how people use audio media, especially for the millennial audience segment. Faced with the challenge from streaming music, many broadcast radio stations have launched their own mobile apps to compete with the new audio services such as Spotify. Guided by the uses and gratifications conceptual framework, this study employed a national survey to investigate millennials’ perceptions of the substitutability and complementarity of broadcast radio, its apps, and music streaming services. The results showed that while radio listeners perceived broadcast radio and its apps as similar products, they regarded music streaming services as distinct from the two. In addition, this study examined motivators behind the diverse perceptions and identified information, escapism, entertainment, and socialization as important. The results suggest that radio stations should take advantage of the mobile technology and offer unique values through their apps, rather than duplicate the offline consumption experience.