The top hit, “Anti-Hero” garnered more than 59 million streams in the week following the album drop and the album as a whole is breaking streaming records.
LikeFolio tracked this surge in streaming activity in real-time. You can see the spike in artist engagement on the chart below:
We listened – and wondered – Where are consumers listening?
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An event of this scale serves as a major bellwether for the industry in which it operates.
In this case, music streaming. A snapshot during a major cultural event can be a significant indicator of future demand.
Because the platforms fans turn to when they want to CONSUME this hot content (i.e. spend money) are doing something right.
Our research team analyzed the top streaming sites to quantify consumer behavior and crown a winner. We sampled ~30,000 social media mentions from Oct. 21 (‘Midnights’ album drop) to present and noted WHERE consumers were listening.
But Spotify insists its long-term investments in the user experience will come to fruition in 2023.
On its last earnings call, the company noted: “our Q3 results clearly show that our investments in the product and experience have resulted in strong user growth, retention and increased engagement, but they've also been a drag on near-term margins. Just to remind everyone, this is all consistent with the strategic decisions we communicated in early 2021 and again at Investor Day. So as we've said, we expect this drag on margins to start to reverse in 2023.”
Some of these investments beyond its foray into podcasting and audiobook content include acquisitions like Heardle, a viral music trivia game, and Kinzen a specialist in platform safety.
Spotify has simple but straightforward standards when evaluating moves like this. All investments must 1) improve margins over time or 2) strengthen the platform’s value proposition to its users.
So how can we track if these endeavors are successful?
When it comes to the platform’s value prop, we can track consumer happiness levels. So far, it looks like Spotify is successfully improving the user experience.
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But...if Spotify wants to succeed in its plans for profitability and audio domination, it needs to stay on its toes.
TikTok is proving it may have an edge for new artists. Its freaky-targeted algorithm is helping up-and-coming artists land on the for you page of listeners who are most likely to love it…an enormous draw for the creative community.