How Has Lockdown Affected The Music Industry?

    Although billions of people are turning to digital music as a way to calm and entertain themselves during this time of crisis, the music industry has been struggling as a result of the coronavirus pandemic and widespread lockdown measures. The industry has lost more than £10 billion from sponsorships alone during the six-month lockdown period in many countries. The £50 billion global music industry depends on sales of tickets, streaming, physical sales, royalties, and digital downloads for revenue. With the declining physical sales, music streaming had already become a significant proportion of recorded music revenue before the pandemic. 

Digital Music Sales Down 

     In the wake of the COVID-19 outbreak, sales of physical copies were down by approximately one-third due to lockdown measures and closure of retail stores. Reduced discretionary spending also caused the sales of digital music to fall by around 11%. The lockdowns and reduced revenue have contributed to the lower advertising spending in the music industry. In digital ad spending, we saw about a one-third reduction. 

Distribution And Live Events 

     The lockdown has also affected the distribution side of the industry because many artists delayed their releases to later months of 2020 or 2021. Because there are still ongoing bans on gatherings, revenue of live performance has been reduced to nearly zero. With many European countries experiencing a resurgence of the COVID-19 pandemic, it seems that the post-pandemic scenario is still not within reach. Even when the outbreak is finally under control, it will still be a challenge to rebuild consumer confidence. This means that when concerts, amusement parks, sports events and cinemas reopen, people will still be reluctant to come. 

New Ways To Engage 

     During the prolonged lockdowns, the music industry is looking for new ways to engage with its audience. Using services like Instagram TV, Twitch, YouTube and others, artists can interact with fans from home. Performers are using live streaming equipment to hold events digitally. Monetisation methods can be integrated with streaming platforms to direct revenue to artists, producers and recording companies. Labels and musicians are looking for new ways to re-establish long-term connections with their audience. The involvement of post-production engineers, composers, and songwriters may remain unchanged. However, labels and musicians will have closer links to online streaming platforms, event promoters and venue operators. With the right strategy, online streaming can be an effective way to reach customers, even when the pandemic is finally fully under control. 

Contact Beatstream 

    To learn more ways that the COVID-19 crisis has affected the music industry, feel free to message me on Twitter, Instagram, or LinkedIn. 

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