Indonesia Music Streaming Usage Report: Price Sensitivity and Platform Competition in a Highly Penetrated Market
2025/11/05
This report, conducted by GMO Research & AI and Z.com Engagement Lab, reveals how music streaming services have become an integral part of daily life in Indonesia. From commuting to working and relaxing, more people now listen to music through platforms such as Spotify, YouTube Music, and Apple Music. To better understand user behavior and attitudes, we analyzed the latest survey data focusing on usage rate, motivations, barriers, habits, and factors influencing platform switching.
Over 70% Have Used Music Streaming — Ad-Free and High-Quality Sound Lead the Way
The survey found that 72.8% of respondents have used music streaming services in the past 12 months — a remarkably high penetration rate.
Key reasons for usage include:
- No ads / uninterrupted playback (53.9%)
- Higher sound quality (48.6%)
- Ability to download music for offline listening (45.0%)
- Recommendations or playlists that suit personal preferences (42.2%)
- More complete music library (39.7%)
- Bundled offers with other services (25.1%)
These results indicate that Indonesian users value a seamless listening experience, superior audio quality, and personalization when choosing their preferred music streaming service.
Why Some Still Don’t Use It: Free Platforms and Pricing Are the Main Barriers
Despite high adoption, 27.2% of respondents have not used music streaming services in the past year. The main reasons include:
- Habitually use free platforms like YouTube (61.0%)
- Free version is sufficient (58.5%)
- Price is too high (26.5%)
- Do not listen to music often / low demand (24.0%)
- Cannot find the music I want (6.1%)
These findings highlight that price sensitivity and the availability of free alternatives remain key obstacles to wider paid adoption in Indonesia.
Usage Habits: Most Stick to One Platform, But Loyalty Is Limited
Among current users:
- 28.2% subscribe to one platform but may switch if a better option is available
- 27.1% previously used multiple platforms but now keep only one
- 26.3% subscribe to only one and have no plans to switch
- 17.4% use multiple platforms for different advantages
This suggests that while most Indonesian users prefer having one “main” platform, loyalty remains conditional — pricing, content, and usability can still drive switching behavior.
Key Factors for Switching Platforms
When considering changing platforms, users cited the following as the top factors:
- Price and plan flexibility (55.6%)
- Completeness of the music library (43.1%)
- User experience (40.9%)
- Exclusive content / special features (36.5%)
- Bundled offers with other services (33.8%)
- Friend recommendation / social influence (31.7%)
This shows that while pricing remains the most influential factor, content variety and user experience are becoming increasingly important in driving platform competition.
Unlocking New Users: Free Trials and Affordable Plans Are the Key
For those who have not yet used music streaming services:
- Free trial period (39.0%) and more affordable pricing plans (36.1%) are the strongest incentives
- More complete music library (17.3%), better sound quality and overall experience (17.3%), and exclusive content (15.3%) also have potential appeal
- However, 24.9% of respondents stated they would not consider using it in the short term under any circumstances
This suggests that offering free trials and flexible pricing can encourage first-time adoption, while improving sound quality and content diversity may help retain users over time.
Pricing Strategy and Content Differentiation Drive Future Growth
Indonesia’s music streaming market has achieved a high level of penetration, but paid adoption is still limited by price sensitivity and the abundance of free options. To sustain growth, platforms must focus on price flexibility, content depth, and user experience — while leveraging free trials and promotional bundles to attract new users.
GMO Research & AI and Z.com Engagement Lab will continue to track Indonesian consumers’ music streaming behavior to identify evolving market trends and consumer needs.
Survey Specifications
* Contents in this report were drafted with input from generative.ai
