The music industry has certainly evolved since the olden days of cassettes and record players (albeit record albums are definitely making a comeback). As live events and concerts have come to a halt, fans have moved online and the industry has had to adapt. According to pollstar, artists are using livestreaming on social platforms to easily keep fans engaged where they are.
As one of the greatest music managers, Mark Gillespiewill attest to, right now is one of the most exciting times to be involved in the music industry. A large part of that has to do with how accessible streaming services have made music.
In fact, streaming has been a golden turning point in the music industry, with many seeing their revenues jump significantly while the continued demand for these types of platforms skyrocket.
So how exactly has streaming impacted the music industry so significantly? And is it all positive?
Here are five ways in which the streaming of music has changed the business of music.
- Chart-topping battles have declined
Back in the day, artists would strategically plan the release of new music to give them the best chance of topping the musical charts. Whole teams were dedicated to figuring out what songs should be released from their new albums first, what competitors were releasing songs at the same time, and ways to keep the song relevant for as long as possible. But now, chart-topping battles have been swapped for streaming binges—in which listeners can listen to all the songs of one individual artist for hours on end!
- The payment models have shifted
Before the days of streaming, the payment model for the music industry was pretty straight forward—with a line of all the hands involved who got a portion of the revenue. However, the streaming payment model is different. Artists still get paid, but it follows a complicated advertising model.
- Music has become more accessible
Thanks to streaming, music has been seeing its largest growth in revenue since the early 2000s! The music industry has had its fair share of struggles with the decline of downloads and traditional CD sales. Despite this, the growth of streaming platforms has given the music industry new life and new ways to be successful. A huge means of this comes from streaming subscriptions, in which listeners pay a membership fee to access the music they want to listen to. This will, in part, change the types of deals managers are able to get for artists through these streaming services.
- There is no reason to own music
One of the traditional aspects of the music industry sales funnel was to entice consumers to own music—whether that be through a digital download of a song onto their iPod or a CD. However with changing ways, now there is very little reason for consumers to actually own a song. Instead, it makes more financial sense for them to have a streaming subscription that gives them unlimited access to the music they love. This is one of the largest drivers that is changing the music industry and the types of people involved who will receive a profit from music.
- Artists have more freedom
Back in the day, artists were willing to sell their souls to record labels for the chance to make it big as a music star. This was because the record labels were once the only way to get their music promoted and sold. But now, the new streaming services allow artists to skip the need to have a record label and can rely on their managers to form direct deals through streaming platforms—which would directly look after the promotional side of their music.
Streaming services have significantly changed the music industry—but largely for the better! It gives music managers and artists more direct freedom to sign exclusive deals, get their music out to the masses and engage with their fans.
