23 Feb How COVID-19 is Affecting the Music Industry
The entertainment and media industry
Like many other segments, the entertaining and media industry has been meaningfully affected by COVID-19, with notably severe effects on movies, live music and promotion sales, as drawn in our current where next media crash. As people turn to music for expressive support and luxury in these rough times, any harmful effect on music listening has been more imperfect. There have, however, been direct inferences for some income streams: the termination or rescheduling of most live music events has hit many artistes; a reduction in physical sales from the end of retail stores has hardened the transformation of records (although this signifies a small component of overall auctions); and there will be some bad impact on synch chances as the manufacture of visual content hollows. The impact on live is predominantly severe for many artists, places, clubs and the industry that sits around that – this is going to take some time to recuperate from and some elements of this part of the manufacturing may never be the same again. The knock-on impact of this on retailing sales is also significant.
In our view, while COVID-19 will harmfully impact some revenue streams, music publication should hold much of its crushed as it has in prior dips, and the verified music sector is more resilient now than before. The sustained trend to on-demand should continue (and may accelerate) which will help to provision the estimate of music rights possessions.
Music streaming during COVID-19 lockdown
As many states have moved into lockdown, it was probable that there would be a increase in music streaming feasting to soundtrack our homebound existence. First signs suggested however that streaming consumption fell relative to pre-COVID-19 levels. The New York Times reported on 6 April that the combined streams of the Top 200 on Spotify in the US slid for the third consecutive week – hitting the lowest point of the year. Spotify established this trend in their recent Q1 2020 results statement, observing an initial weakening in daily active users in hard hit lands, particularly Italy and Spain. One of the drivers of this is that music feasting tends to be an activity that co-exists with others, such as traveling to work, time consumed in cars, and going to the gym. These have been cut back or lost totally during lockdown.
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