The impact of COVID-19 on music consumption and music spending

Abstract

COVID-19 induced restrictions ordered by governments around the world have been an exogenous shock to the music industry, which we divide into two affected groups: 1) live music events and 2) recorded music. While the impact on live music events is rather obvious, it is unclear how the current pandemic is affecting the recorded music market. Hence, we study consumers’ pre- and post-pandemic shifts in consumer spending (in euros) and music consumption (in hours) across live music events, as well as the digital and physical submarkets of recorded music, in the world’s fourth largest music market, Germany. Relying on an online bi-annual panel capturing five waves between winter 2018/19 and winter 2020/21, we find that the COVID-19 pandemic is accelerating the continuous trend towards digitalization of the music landscape with premium streaming being the biggest beneficiary. However, total monthly consumer spending on music decreased by more than 45% compared to pre-pandemic, with live music events and physical sales being the most severely affected. Surprisingly, music consumption in hours also decreased during the lockdown even though consumers spent more time at home.

Sustaining Innovation: Digital Live Music Models in a Post-COVID-19 Trinidad and Tobago

“…Important to note is the fact that those in support of these features are more likely to financially support online concerts embodying them. In this regard, this attribute presents an interesting parallel with the results of studies conducted on the U.S. market by MRC (2021b) in April 2020, as well as in Germany by Denk et al (2022) during the winter period of 2020/21, which revealed participation in livestreams, albeit with a limited willingness to financially contribute to them. Considering this, online concert promoters in both T&T and more developed nations can conduct beta tests on a phased basis to see how well fans adapt before engaging in a wider roll-out of these immersive features.…”

“…Although livestreamed concerts were new to many music fans, 28% of people said they would pay to watch them online (MRC, 2021b). Similarly, in Germany, an online panel survey conducted by Denk et al (2022) in winter 2020/21, found that 34% of respondents had watched a live music stream with an average willingness to pay €7.10. As physical live music experiences re-opened in 2021, however, preliminary data showed declines in online viewership (MRC, 2021a).…”

Data augmentation techniques for classification of music genre

“…This shift has resulted in substantial financial benefits for the music industry, with significant revenue growth reported by Chinese music platforms in 2018, witnessing a remarkable 20% increase in a single year, platforms have collectively amassed 180 million monthly users as of the year 2020 [1]. The shift is especially noteworthy in the post-Covid era, as premium music streaming platforms like Spotify and Apple Music have observed a rise in annual subscriptions [2].…”

Social, Economic, and Technological Barriers of the Music Industry in Cebu Province Through the Lens of Management Functions

“…These revenue streams contribute to the long-term viability and expansion of the industry. However, the industry is undergoing digitalization, accelerated by the COVID-19 pandemic, leading to shifts in consumer behavior and operational dynamics (Denk et al, 2022). Technological advancements in artificial intelligence and digital platforms have transformed the music ecosystem, presenting opportunities and challenges (Bernstein, 2004).…”