A group of international researchers observed an overall decline in music streaming on Spotify in the middle of the Covid-19 pandemic compared to streaming figures before the global health crisis, according to a recent study by the journal of marketing research Marketing science concluded.
The pandemic and resulting lockdowns have drastically reduced audio music streaming consumption in many countries as people shift to video platforms, he found. On average, audio music consumption decreased by 12.5% after the World Health Organization (WHO) declared a pandemic in March 2020.
Jaeung Sim, one of the contributing researchers and PhD student at Korea Advanced Institute of Science and Technology (KAIST), illustrated, “On average, audio music consumption decreased by more than 12% after the declaration of the WHO.
He continued, “As a result, during the pandemic, Spotify lost $838 million in revenue in the first three quarters of 2020. Our results show that human mobility plays a much larger role in music audio consumption than we didn’t think so before.”
The results highlight a misconception that listeners actually broadcast Following music while in various states of confinement. But the numbers show the opposite.
“Despite the common expectation that the pandemic would universally benefit online media platforms, we found that it had a negative impact on music streaming services,” remarked researcher Rahul Telang, Professor of Information Systems. information at Carnegie Mellon University.
He added, “Our findings imply that the ever-changing media consumption environment may put music streaming in fiercer competition against other forms of media that deliver more dynamic and vivid experiences to consumers.”
The study, titled Shook the Streaming Star Virus: Estimating the Impact of COVID-19 on Music Consumption, came to its conclusion by analyzing streaming data from Spotify. It looked at the weekly top 200 songs for two years across 60 countries between June 2018 and May 2020, as well as various lockdown policies and detailed information about Google’s daily mobility. Empirical evidence has shown that the COVID-19 outbreak has dramatically reduced music streaming consumption in many countries. It also found that countries with the most declining mobility experienced larger declines in streaming during the pandemic.
See the full study here.
Marketing science is a peer-reviewed, research-driven scientific journal using quantitative approaches to study all aspects of the interface between consumers and businesses. It is published by INFORMEDa leading association in the field of data science.