Coronavirus hit the music industry on a large scale, with live event sales suffering the most. This pandemic is expected to cost around 10 billion dollars in business sponsorships, with longer expected delays. To find out more about the music industry’s alterations in response to COVID-19, we invite you to read this article.
Sourced through Scoop.it from: www.weforum.org
The three different influences of COVID-19 on the music industry are:
1. Streaming and sales – After COVID-19 started, physical sales, which account for one-quarter of the music revenue reported, decreased by about one third –not surprisingly when retail stores were closed–while digital sales decreased by around 11%. It applies to discretionary expenditure in general.
Research suggests even that the way people hear music shifts in light of COVID-19. Tencent Music Entertainment (TME) has reported improvements of the pandemic ‘s listening habits in China, with more users using home applications on TVs and mobile devices. Revenues from online music streaming rose 70.0 percent year-over-year in the first quarter of 2020.
Spotify has also made the shift in customer patterns visible during the first quarter of this year, reporting that everyday behaviours are now expressed in the increased popularity of weekend consumption and soothing genres.
With respect to how much music was consumed, the initial data showed a 7-9 percent drop in streaming in some countries – although it seems to be improving. Simultaneously, video streams on-demand music has increased. The reasons for the COVID-19 have increased the emphasis on the news media (especially TV).
2. Distribution – There is a rising number of artists on the distribution side who delay releases until late in the year, partly because of the inability to use tours to promote new releases and the exciting nature of live music. A broad variety of concerts and activities was cancelled.
Although bans on major events persist, live entertainment revenues are virtually zero – cutting the total revenue of the music industry in half. Ticket sales and supplies are estimated to cost the industry more than $10 billion in sponsorships over six months shutdown, with longer delays being even greater.
Furthermore, the post-COVID-19 outlook seems to be difficult, and live music growth projections should be considerably updated. It would be difficult to regain consumer trust in the sector; one survey reveals that less than half US customers, without confirmed vaccine, expect to go to concerts, film, sporting events and amusement parks when reopened. This would have tremendous effects on artists –they produce about 75% of live shows’ profits, even as data shows that the greater 1% of performers are getting an increasing share of live music revenue (60% in 2019 versus 26% in 1982).
3. Advertising – There are also reduced promotional costs globally for the music industry. In the first half of 2020, about 25% of media buyers and advertisers stopped all advertisements, a survey by the Digital Advertising Bureaus showing that another 46% reduced spending. This would impact the advertising music platforms –and thus both total industry sales and individual income for artists – combined with an estimated one third drop in digital ad expenditure. Spotify revealed its lack of marketing targets for the first quarter in view of ad budget adjustments.
To learn more about this article, visit the original source at the World Economic Forum website.
Canyon Entertainment Group is committed to help various artists and fans during this pandemic by hosting a series of virtual concerts. This can help the artists financially during this hard time – and at the same time, the listeners and the fans can stop missing their favorite artists and can listen to their music which COVID-19 halted. For more information contact info(at)canyonenterntainmentgroup.com.