Concert-Induced Streaming: The Dynamic Effect of Concert Demand on Recorded Music Consumption

Abstract

The relationship between live and recorded music sectors has long been of interest to scholars. However, to date, the effect that live music demand has on the consumption of recorded music remains relatively less explored. This article seeks to address this gap by examining the dynamic effect of individual concert demand on the consumption of recorded music. Using daily, country-specific streaming data provided by Spotify, information on artist touring behavior, and a robust difference-in-differences estimator and event study techniques, this paper contributes new evidence regarding the effect that concert demand has on track-level streaming volumes. Estimates suggest that while concert activity stimulates pre-concert and post-concert streaming, it may also result in lower long-run consumption, offsetting the initial positive effects. These findings contribute to the literature on the links between each sector of the music industry and the effect of digitization, and have important implications for a number of industry participants. This is a single-authored paper.