New research from Wharton assistant management professor Manav Raj suggests that on digital platforms like Spotify, positioning yourself near a competitor can often be more beneficial than harmful. And this doesn’t just apply to pop stars; Raj’s research suggests that businesses may benefit by positioning themselves alongside competitors who are already attracting high levels of demand on platforms like Amazon or GrubHub as well.
His study examined data from almost 10,000 artists on Spotify between March 2016 and September 2019, showing that when a popular artist releases new music, it often brings attention to related artists, too. This “spillover effect” is especially prevalent on platforms that make it easy for users to explore new content.
(K@W)