Creating competitive advantage in music streaming: A niche analysis of the Turkish market

This thesis explores the dynamics of creating competitive advantage in digital music markets. To this end, a model based in competitive advantage, cultural proximity and long tail effect theories is tested through a case study focused on the Turkish music streaming market. The competition structure of Turkish digital music market includes both global platforms Spotify and YouTube, and local alternatives fizy and TRT Dinle. A cross-sectional descriptive study was conducted using primary data collected from 347 valid questionnaire responses. As the regression analysis following factor analysis presented limited explanatory power, niche analysis was implemented to find out the details of competitive dynamics in the Turkish digital music market. The results suggest that while global platforms dominate in usage, local services demonstrate relatively stronger user satisfaction in specific dimensions including music diversity, ease of use, and optional features. Regression results point the recommendation system as the only gratification factor significantly associated with users' willingness to pay, emphasizing the major role of personalized content in valuing music platform. The niche breadth and overlap analysis show that global platforms compete within similar user segments, whereas local platforms cater to more distinct, culturally specific expectations. A comparative analysis with South Korean market, another emerging market with a strong player like Melon, offers additional insights and policy recommendations for the stakeholders in the emerging markets. Overall, the results emphasize the growing strategic importance of user experience design and personalization in developing and sustaining competitive advantage.