KAIST

Decline in human mobility has stunning consequences for content streaming

< On average, audio music consumption decreased by 12.5% after the World Health Organization’s (WHO) pandemic declaration in March 2020. >

The Covid-19 pandemic and lockdowns significantly reduced the consumption of audio music streaming in many countries as people turned to video platforms. On average, audio music consumption decreased by 12.5% after the World Health Organization’s (WHO) pandemic declaration in March 2020.

Music streaming services were an unlikely area hit hard by the Covid-19 pandemic. New research in Marketing Science found that the drop in people’s mobility during the pandemic significantly reduced the consumption of audio music streaming. Instead, people turned more to video platforms.

“On average, audio music consumption decreased by more than 12% after the World Health Organization’s (WHO) pandemic declaration on March 11, 2020. As a result, during the pandemic, Spotify lost 838 million dollars of revenue in the first three quarters of 2020,” said Jaeung Sim, a PhD candidate in management engineering at KAIST and one of the authors of the research study on this phenomenon. “Our results showed that human mobility plays a much larger role in the audio consumption of music than previously thought.”

The study, “Frontiers: Virus Shook the Streaming Star: Estimating the Covid-19 Impact on Music Consumption,” conducted by Sim and Professor Daegon Cho of KAIST, Youngdeok Hwang of City University of New York, and Rahul Telang of Carnegie Mellon University, looked at online music streaming data for top songs for two years in 60 countries, as well as Covid-19 cases, lockdown statistics, and daily mobility data, to determine the nature of the changes.

The study showed how the pandemic adversely impacted music streaming services despite the common expectation that the pandemic would universally benefit online medias platforms. This implies that the substantially changing media consumption environment can place streaming music in fiercer competition with other media forms that offer more dynamic and vivid experiences to consumers.

The researchers found that music consumption through video platforms was positively associated with the severity of Covid-19, lockdown policies, and time spent at home.

-Publication
Jaeung Sim, Daegon Cho, Youngdeok Hwang, and Rahul Telang,
“Frontiers: Virus Shook the Streaming Star: Estimating the Covid-19 Impact on Music Consumption,” November 30 in Marketing Science online (doi.org/10.1287/mksc.2021.1321)