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Streaming: Video is getting a big boost from lockdown, what about music?

Streaming: Video is getting a big boost from lockdown, what about music?

With millions of people quarantined at their homes, video streaming services like Netflix are seeing record surges in demand. The New York Times reported that Netflix's viewership had surged 28% in the last few weeks. So video streaming is doing great, but what about music?

We explored the data from Spotify's top 200 chart for the UK, which has now had significant social distancing for more than 2 weeks, to see if we could find any clues.

Surprisingly the numbers suggest that music streaming won't be able to bank on a big boost as video did. So far the numbers for the last 2 weeks look pretty much exactly the same. If anything, they might actually show a slight fall in how much people have been listening to Spotify.

The data says a lot about how we use music in 2020. The fall is less surprising when you consider that during more "normal" times, the amount of music streamed on Spotify peaks every Friday, before falling substantially over the weekend -- when most people actually have much more free time.

It suggests that people use music streaming as more of a distraction from boredom, say work or commuting, rather than an out-and-out leisure activity in its own right. Sorry Spotify (and artists), it looks like no coronavirus boost for you.

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business

JetBlue is raising its bag fees as fuel costs squeeze airlines

JetBlue will reportedly hike its bag fees, as the cost of jet fuel continues to climb amid the war in Iran. It’s the latest example of carriers finding ways to push rising costs onto travelers.

Last week, United Airlines CEO Scott Kirby said that if fuel prices remain elevated, fares would need to rise another 20% for his airline to break even this year.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.

As CNBC reported, when one airline raises fees, others tend to follow.

Earlier this month, JetBlue hiked its first-quarter outlook for operating revenue per seat mile to between 5% and 7%, saying that strong Q1 demand helped “partially offset additional expenses realized from operational disruptions and rising fuel costs.” Now, the carrier appears to be making moves to further boost revenue to offset those costs.

Earlier on Monday, JetBlue rival Alaska Air lowered its Q1 profit forecast. The refining margins for the carrier’s cheapest fuel option — sourced from Singapore and representing about 20% of Alaska’s overall supply — have spiked 400% since February.

JetBlue did not immediately respond to a request for comment.

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