Since the introduction to the market of streaming services such as Spotify, the music industry has undergone some serious changes. Critics believed, when music streaming first arrived, that the services would undermine the traditional music industry and lead to its decline.
The opposite has, in fact, been true. Last year, digital formats accounted for more than half of the total revenue of the Warner Music Group. Streaming revenue is double that of physical sales of CDs and records, and triple that generated by downloads.
Changes to the charts
Gone are the days when a new release would climb the charts to number one, then fall back out of the charts. New releases are less important to streaming listeners, and the format that they occupy often encourages binging on one artist or album, rather than listening to a mix of tracks.
This means that pop heavyweight Ed Sheeran recently took the dubious honour of occupying ALL of the first sixteen places in the streaming charts!
Music isn’t the golden ticket it once was
Streaming services use complicated formulas to pay artists, based on the number of plays and the ad revenue generated from people listening to their tracks. It’s a fraction of the amount they would have been paid for sales and radio play in years gone by, but the Taylor Swifts and Ed Sheerans of the world are hardly on the breadline!
That music sales in themselves are less of a moneymaker than they used to be could account for the huge, lavish and expensive gigs that many artists rely on for their bread and butter these days – so you could say streaming is encouraging live music.
No-one is pirating music
The music industry has been in decline since 1999, when Napster launched. Quickly followed by other torrent sites like Limewire and The Pirate Bay, pirating music became a huge problem for the music industry during the 00s.
Now more and more people are turning to streaming and moving away from illegal downloads. It means that the music industry is once more being paid for the music we all listen to – which accounts for the fact that the music industry has grown over the last three years, for the first time since 1999.
Millennials have grown up in a culture where subscriptions are the norm – we subscribe to beauty products, washing tablets, films and much more. Music subscriptions may have taken slightly longer than Netflix to take hold, but the model is here to stay now.
Book a music artist
There’s nothing quite like seeing an artist live and, in the flesh, – whether it’s an old favourite or an up and coming new band. It’s a great way to engage guests at an event, whether it’s a corporate occasion or a festival. If you’re looking to book an artist for your event, contact MN2S talent agency to book a celebrity musician.