Currently in America, as the\u00a0coronavirus pandemic forces millions to work from home commutes have virtually disappeared. With them, the drive-time pop music and talk radio habits of many Americans have changed dramatically.<\/p>\n
Instead of listening in the car, people are calling on digital assistants like\u00a0Amazon\u2019s Alexa and\u00a0Apple\u2019s Siri to fire up some music while they cook. That\u2019s not only affecting the types of audio services people are listening to, but also the type of music they\u2019re listening to.<\/p>\n
Working from home means more time for entertainment: in the last two weeks of March, 60% of people are engaging with more entertainment, according to MRC Data and Nielsen Music. About a quarter of those surveyed added at least one new subscription service, and 38% of that group added a new music subscription service.\u00a0But they\u2019re not using these services to listen to the same things.<\/p>\n
On\u00a0Spotify\u00a0there\u2019s been a shift away from new pop songs as album releases have slowed \u2014 streams of the top 200 U.S. songs fell 28% from mid-March to mid-April. Older songs have been on the rise, reflecting both the decline in new releases, and a hunger for the comfort of familiar songs, such as the oldies featured on Spotify\u2019s new \u201cAt Home\u201d playlists.<\/p>\n
The week of March 13, when stay-at-home orders began across the nation, Pop, rap, R&B and Latin music saw greater drop-offs than the average trend, according to Alpha Data. In contrast, classical, folk and children\u2019s music all saw an increase in streams. Spotify reports that there\u2019s been an increase in cooking and housework-themed playlists as people shift away from party lists designed for get-togethers.<\/p>\n
The rise of listening at home is also tied to a surge in smart speaker usage, which is up 34% in April, according to eMarketer. And 18- to 29-year-olds are using smart speakers more than any age group \u2013 42% say they\u2019re using these devices more. That benefits the services most connected to speakers \u2014 Spotify, Amazon Music and Apple Music.<\/p>\n
On the flip side, radio broadcasters like\u00a0iHeartMedia\u00a0and\u00a0SiriusXM\u00a0are likely to suffer. IHeartMedia is the owner of terrestrial radio stations, and faces a drop in advertising dollars as other sectors — like travel — struggle. SiriusXM is another service frequently used in cars, but fewer people are driving under lockdowns and new car sales are likely to drop in the coming recession. In an effort to attract new listeners, SiriusXM launched a free streaming service through its websites and apps that was available up until May 15.<\/p>\n
The coronavirus is also having ripple effects on the podcast industry.<\/p>\n
In the U.S., the time spent listening to podcasts is declining \u2014 the number of \u201cPodcast Listens,\u201d defined as a one-minute play over a 24-hour period, is down 20%, according to\u00a0Voxnest data. That\u2019s largely attributed to the lack of commutes. But in Europe, podcast listens have increased by 53%, as those audiences embrace the format from home.<\/p>\n
The podcast industry will feel the decline in brand advertising, which comprises 40% of podcast ads. But on the flip side, the direct response ad market, which comprises the lion\u2019s share of podcast ad revenue, is expected to remain healthier. Another advantage of podcasts: it\u2019s easier to record a podcast at home than it is to produce music with high production value, so there\u2019s plenty of new content to keep listeners hooked.<\/p>\n
The open question is whether these trends reverse once new albums drop and people start commuting again.<\/p>\n
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