Algorithms And Curated Playlist Effect On Music Streaming Satisfaction

Abstract

This research attempts to better understand the use of algorithms by music streaming services Apple Music and Spotify, and determine if their use affects user satisfaction. Both Apple Music and Spotify have integrated algorithms into their service in order to provide individually curated playlist. These playlists are created based on a user's musical taste gathered by interacting with the service. The playlists allow users to discover new music based on what they enjoy. The more a user provides information on the type of music they like, then the better at predicting the algorithms become. The research attempts to answer: does the use of algorithms, analytics, and curated playlists enhance customer satisfaction and music discovery in Apple Music and Spotify? Both companies have invested heavily into their algorithms and it is important to know if they benefit the user. To find the answer to the question, college aged (18-23) individuals were surveyed on their engagement and satisfaction with Apple Music and/or Spotify. Without access to either company's algorithms a proxy for an input to them was used. Results show that for a one degree increase in engagement there was a 37.8% increase in user satisfaction. The more a user interacted with the app and listened to music the more satisfied they would be with the service and curated playlists. With access to their own algorithms and all their users Apple Music and Spotify can come to a more precise conclusion. This research is more for the benefit of other streaming companies or companies interested in joining the streaming industry. With the research results, these companies can understand that investing in algorithms to enhance user experience is beneficial.