Driving Music Demand in the Age of Streaming: Understanding the Effectiveness of Curated Playlists

Driving Music Demand in the Age of Streaming: Understanding the Effectiveness of Curated Playlists

Abstract:

Music streaming platforms such as Spotify provide access to millions of songs, making curation essential. Playlists, as curated collections, play a key role in driving both consumption and discovery, but the success factors behind their impact on song demand remain insufficiently understood. Using Difference-in-Differences analyses on 204,036 quasi-experiments, where songs are listed and later delisted, we find a significant average listing effect of 12% more streams and a carry-over effect of 3% after delisting. These effects show considerable variability, with some songs seeing increases of up to 30%, while others, particularly those on less popular playlists or with extensive prior playlist exposure, experience only marginal gains. Playlists curated by context—focusing on activities or situations rather than genres or artists—lead to stronger uplifts during listing and carry-over effects due to their focus on diverse listening contexts. While playlists with more predictable or homogeneous song selections tend to generate higher streams during listing, as they align well with listener expectations, these same characteristics reduce the carry-over effect as they limit the potential for new music discovery. These findings advance our understanding of playlist curation strategies and offer valuable implications for artists, labels, and curators aiming to lift long-term song performance.

More information on Prof. Harald van Heerde can be found here

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