Platforms, Promotion, and Product Discovery: Evidence from Spotify Playlists / Luis Aguiar, Joel Waldfogel.

Format:

Book

Author/Creator:

Aguiar, Luis.

Contributor:

National Bureau of Economic Research.

Waldfogel, Joel.

Series:

Working Paper Series (National Bureau of Economic Research) no. w24713.

NBER working paper series no. w24713

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Platforms, Promotion, and Product Discovery

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2018.

Summary:

Digitization has vastly increased the amount of new music produced and available directly to consumers. While this has levelled the playing field between already-prominent and new artists, creators may now be dependent on platform decisions about which songs and artist to promote. With Spotify emerging as a major interactive streaming platform, this paper explores the effect of Spotify's playlists on both the promotion of songs and the discovery of music by new artists, using four approaches. First, we examine songs' streaming volumes before and after their addition to, and removal from, major global playlists. Second, we compare streaming volumes for songs just on, and just off, algorithmic top 50 playlists. Third, we make use of cross-country differences in inclusion on New Music Friday lists, using song fixed effects to explain differences in streaming. Fourth, we develop an instrumental variables approach to explaining cross-country New Music Friday rank differentials based on home bias. Being added to Today's Top Hits, a list with 18.5 million followers during the sample period, raises streams by almost 20 million and is worth between $116,000 and $163,000. Inclusion on New Music Friday lists substantially raises the probability of song success, including for new artists.

Notes:

Print version record

June 2018.