Music Venue Landscape: Trends and Predictions
A decline in the number of people streaming music, the collaboration between the gaming and music industry, and support from brands and labels are some trends surrounding the music streaming sector during this COVID-19 crisis.
A Decline in Music Streaming
- In the wake of the coronavirus pandemic, many people across the world have closed businesses while others are working from home. People have a lot of free time in their hands, with a significant amount of time being used for entertainment. Video streaming has experienced a boom from people being confined in their homes, which has lowered the number of audience steaming music.
- In Italy, a country that has been the worst hit by the coronavirus pandemic, video steaming saw a "spike of around 14.5% in the week commencing March 13th." According to BuzzAngle and Alpha Data, audio streaming numbers, on the other hand, saw a decline of 10% on March 6th from the prior week.
- According to a survey by Music Business Worldwide, "global streams from Spotify's Top 200 chart dropped 11% to 226 million plays in the week commencing March 13th (music weeks run from Friday to Thursday). These statistics are a clear indication of the consumer behavior change, which could be attributed to the fact that more people are choosing video streaming platforms as opposed to music as they spend most of their times indoors.
- Music streaming numbers will, however, not stay down for long. Various industries have come forward to save the music streaming sector amidst the coronavirus pandemic. The announcement by Apple Music, for example, to expand into 52 more countries across Latin America, Africa, Europe, and Asia will see a rise in the number of people steaming music.
Collaboration Between the Gaming and Music Industry
- Although collaboration between the gaming and music industry has been in existence for a long time, the coronavirus pandemic has accelerated it. Minecraft, a renowned video game, has hosted various virtual concerts, which included "Nether Meant" and "Second Aether," a DJ festival.
- Fortnite, a multiplayer game, also introduced an in-game concert. The concert, which featured a Travis Scott avatar, "soared over players while the viewer teleported around the venue while seeing psychedelic graphics." The Travis Scott in-game concert saw 12.3 million players participate.
- Owing to the success that has been brought about by the collaboration between the gaming and music industry in the wake of the coronavirus pandemic, this trend is likely to continue long after the pandemic is contained.
Labels and Brands Support
- During this time, when physical concerts have been canceled across the world, artists and event organizers have been significantly affected. While some musicians have paused producing and releasing new songs, there are a few who are still optimistic that they will gain from music streaming platforms.
- Brands and labels have come forward to offer financial support to ensure that the music streaming industry does not stall. Sony Music Global Relief Fund, for example, has provided $100 million to help its members during this coronavirus pandemic, while PPL, the British music licensing company, has also released £23.9 million.
- Apple Music is giving "budding music creators 90 days free access to audio apps Final Cut and Logic Pro". It has also announced that it will release $50 million relief fund for indie distributors and labels.
- Bandcamp is also supporting artists by temporally waiving its fee. The revenue received from this waiver is being directed to artists for their support during this COVID-19 crisis.
- To provide assistance and information to artists who are experiencing financial losses due to the coronavirus pandemic, Covid-19 Music Relief has been launched by Spotify. Brands and labels support is a trend that will be experienced even in the future whenever the music industry is financially affected.