Business

The Spotify Effect: Understanding How Algorithms Influence Music Listening

By Loudest Team
February 24, 2024
The Spotify Effect: Understanding How Algorithms Influence Music Listening

Music marketing startup Your Music Marketing (Y2M) has released findings from its analysis of over 25.3 billion Spotify streams across 'several hundred' artists. The report delves into Spotify's algorithmic playlists and mixes, including its radio feature, Daily Mix, Discover Weekly, Release Radar, On Repeat, and Repeat Rewind playlists.

According to Y2M, 18.7% of the analyzed streams, dating back to 2015, originated from these algorithmic playlists. However, over the past year, this percentage has risen to just over 21%. Extrapolating from Spotify's share of the global streaming market, the report suggests that its recommendation algorithms could be responsible for generating "between $858 million and $1.16 billion" in revenues for the music-streaming industry.

Moreover, the study draws comparisons between emerging artists and established musicians. It notes that, on average, emerging artists receive nearly two-thirds of their listens (59.9%) from programmed sources, predominantly user playlists. In contrast, the most popular artists experience a reversal in this trend, garnering around two-thirds (64.2%) of their listens from active sources.

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