After years of declining sales, the music industry has seen revenue increases the past few years thanks to growth in streaming. Do you think the industry has finally found a way to adapt to the changes in ways people consume music? Do you think that revenue will continue to increase, flatten, or decline in the coming years? Limit: 6 responses
Austin Pappolla (1/2)
ReplyDeleteYes, I do believe that the music industry has found a way to adapt to the changes in ways people consume music. All you have to do is look at the overwhelming popularity of services such as Spotify, Apple Music, and YouTube. These streaming services all provide the means for artists to generate potential revenue. According to Igor Bonifacic of engadget.com, Spotify and Apple Music alone generated $7 billion in revenue. Not to mention that streaming in general was responsible for 83% of the industry’s total revenue (Bonifacic). Known artists get paid handsomely so they still benefit perfectly fine from all of this as well. In the modern day, CDs and even digital download to a certain extent have become somewhat outdated. Most people simply pay a subscription or go on YouTube on their personal devices to get all the music they want without any hassle. Going back to Spotify and Apple Music, they generated $75.5 million subscriptions in the United States alone last year (Bonifacic). And this does not account for the millions of people who use the free version of Spotify with built-in ads. The music industry knows that the way people find and listen to music has changed and they have fully adapted with the times given the various options out there. In my opinion, the revenue will continue to rise. As older generations continue to adapt to technology, these services will find themselves getting new consumers constantly. And as older generations get on plans, they might let their kids do it too. Also, streaming services are still relatively new in their lifetime. Spotify was only introduced a little over a decade ago. YouTube and Apple Music came out in 2015. The most popular music trend before streaming services was digital downloading through methods such as the iTunes and CDs. These types of methods were introduced in the 90s and early 2000s. Streaming services still have plenty of time before they could top out.
Austin Pappolla (2/2)
ReplyDeleteBut with technology ever-changing, they may be able to maintain relevance for decades to come. But it isn’t just optimism that makes me think the numbers are going to keep rising. Streaming services are continuing to perform better than expected. The numbers speak for themselves. According to an article written by Tim Ingham on the Rolling Stone, Spotify netted a $60.4 million operating profit in quarter 3 of 2019. This would far exceed the projections placed on them to the point where they earned 30 times their predicted high point (Ingham). This was before the pandemic struck too. Since then, they’ve seen even greater growth thanks to more people wishing for a cure for boredom and simply having the time try and invest in new things. The exposure and overall love for these services is at an all-time high. Todd Spangler of variey.com highlighted how Spotify in particular saw all record highs in the 4th quarter of 2020. Not only did they add a record 30 million new premium subscribers, but also saw their total number of users jump up to new highs thanks to a record 74 million new users joining the platform (Spangler). Could Spotify and other services see a slight decrease in revenue after the pandemic is fully over? It is certainly a possibility. Some users may no longer have a use for it thanks to the pandemic subsiding. There’s also the fact that some people’s urges for music will be satisfied by live performances. But at the same time, there is a distinct possibility that those who gave it a try are now hooked and have no intention of stopping. The versatility of these services makes them very appealing. They don’t just offer music. Podcasts have been trending greatly these last few years. But there is also audiobooks, meditation guides, self-help materials, comedy, and even poetry. Music streaming services have become an all in one audio entertainment platform. And as more trends come about, they will likely adapt and pick them up to give consumers yet another reason to use their services.
Works Cited
Bonifacic, Igor. "Streaming Music Made Up 83 Percent of the Record Industry's Revenue In 2020." Engadget, 26 Feb. 2021, https://www.engadget.com/riaa-music-revenue-report-2020-204907874.html. Accessed 11 March. 2020.
Ingham, Tim. “Spotify is Profitable. How Did That Happen?” Rolling Stone, 12 Nov. 2019, https://www.rollingstone.com/music/music-features/spotify-profitable-how-happen-910456/. Accessed 11 March. 2020.
Spangler, Todd. "Spotify Hits 155 Million Paid Subscribers in Q4, Says Podcast Listening Nearly Doubled." Variety, 3 Feb. 2021, https://variety.com/2021/digital/news/spotify-q4-2020-results-podcast-1234899086/. Accessed 11 March. 2020.
Media Trends Blog 5
ReplyDeleteThe boom of music streaming services from companies like Apple and Spotify have launched music into a new universe. Radio is slowly fading, and paid services are becoming the new normal. I believe that the music industry is merely leaning on these new resources in order to cater to consumers and squeeze the profit to new heights. While I think things stacked up for major labels nicely, they are not the sole reason for this intense rise in music consumption.
The era of streaming has truly just begun, and once we think we have hit a peak another bombshell is dropped, and the music snowball continues to grow. According to Hollywood Reporter, “Square, the mobile payments firm run by Jack Dorsey, has agreed to acquire a majority stake in Jay-Z's music streaming service Tidal for $297 million, the companies announced Thursday” (Jarvey). I believe that this deal will compare to Facebook buying out Instagram in the near future. The fact that Jay-Z more than tripled his initial investment in Tidal says a lot about how streaming is going to be a foundational part of music going forward.
While we have seen technology improve vastly over the past couple of decades, we still do not have a firm grasp on our full capabilities with the internet. A prime example of this is the rise of social media app Tik Tok. Debuting in 2017, the app overtook the latter half of 2019 and was king throughout the months of lockdown in early 2020. Not only is the app known for its viral dances, but also its promotion of music. The Ringer states that “There were 176 songs that were featured in 1 billion unique video views on the app in 2020 alone” (Schube). Songs being attached to viral routines was and still is the perfect storm for major labels. Artists like Megan Thee Stallion, Doja Cat and SAINt JHN were big winners on Tik Tok, gaining fame and fortune for making catchy hits. With evolving tech, the music industry can branch out streaming in various ways, creating the ultimate revenue stream tree.
Speaking to variety, another thing about technology that helps streaming is that it is interconnected. Streaming can be brought to almost any technological platform, thus boosting numbers and profit for those who work in the industry. For example, Spotify Newsroom released their data for #2020WRAPPED and some big things stood out. Throughout 2020, streaming on Spotify saw and increase of nearly 55% on gaming consoles. It has become easier for music to be consumed since our world is almost reliant on technology. From video games to sporting events to bowling alleys, streaming exists literally everywhere.
Overall, I believe that we have yet to hit the peak of streaming, and there is much more saturation to come in terms of music in the real world. While it is good that we continue to find outlets for artists to share their creative works, at times it can be too much. I hope that labels try to keep a balance and avoid from their typical money hungry ways, but only time will tell.
Works Cited
DeleteJarvey, Natalie. “Square Acquires Majority Stake in Jay-Z's Tidal for $297 Million.” The Hollywood Reporter, 4 Mar. 2021, www.hollywoodreporter.com/news/square-acquires-majority-stake-in-jay-zs-tidal-for-297-million.
Schube, Will. “What Does TikTok’s Annual Report Say About Music in 2021?” The Ringer, 12 Jan. 2021, www.theringer.com/music/2021/1/12/22225880/tiktok-annual-report-streaming-services.
“The Trends That Shaped Streaming in 2020.” Spotify, 1 Dec. 2020, newsroom.spotify.com/2020-12-01/the-trends-that-shaped-streaming-in-2020.
This is Eric Martineau by the way :)
DeleteHarriet Rice
ReplyDeleteWith the loss of live shows and concerts in 2020, the music industry had to adapt quickly. It is reported that overall recorded music revenue increased by 9.2 percent to $12.2 billion in 2020. This growth can be credited to more money coming from streaming services (Bonifacic). This is not the only year that we have seen growth in streaming as this has been the fifth year of growth for streaming. Spotify and Apple music being the top streaming platforms generating $7 billion between the two (Bonifacic). With this, we see that 55,000 new tracks are being uploaded onto streaming services every day which is up from the 40,000 reported in April 2019 (Page, 25). With more time spent at home, musicians are trying to get heard making streaming a competitive platform. 2020 was also the year of TikTok as in September the company claimed 100 million users daily (Page 26). With the fear of TikTok taking over the market I personally see it the other way. On TikTok, there were 176 songs that were featured in 1 billion unique video views on the app in 2020 alone (Schube). New artists or even well-known artists are becoming popular because of this app. Someone who may see a 15-second video on the app will then intrigue to stream the song on Spotify or Apple Music.
Spotify in particular has shown great success through its podcast strategy. As of Q4, “Spotify has 2.2 million podcasts on the platform” (Spangler). Subscribers also jumped to 155 million (up 24%) in the fourth quarter (Spangler). Personally, I have just recently joined the podcast wave and love it. Especially in 2020 people are looking to listen to new things beyond music. We also see Apple Music radio with a rebrand to Apple Music 1 (Perez). The expansion of the radio hits at personalized playlists for users. With the goal of being "a took to connect fans with artists". The newer stations will be painting the picture that they are catering to specific taste and interest which will draw in many (Perez). As a result, Apple Music Radio will help Apple's subscription service stand out (Perez). This rebrand helps demonstrate the music industry constantly adapting and keeping up with how people want to consume their music, radio, or podcasts.
Therefore, I think the increase in podcasts for the streaming service was an excellent idea. as well as the rebrand for Apple Music. Overall, I think the industry has finally found a way to adapt. I think it is crucial for music streaming to continue to utilize other platforms such as TikTok as well. With such a high following on that app, artists can advertise without even knowing which then will promote more streams on other services as a result.
Works Cited
ReplyDeleteBonifacic, I. "Streaming Music Made Up 83 Percent of the Record Industry's Revenue In 2020," Engadget 26 Feb. 2021,
https://www.engadget.com/riaa-music-revenue-report-2020-204907874.html
Page, Will. "The Song Streams Remain the Same." Billboard 19 Dec. 2020.
Perez, Sarah. "Apple Launches Apple Music Radio with a Rebranded Beats 1, Plus Two More Stations." Tech Crunch 18 Aug. 2020,
https://techcrunch.com/2020/08/18/apple-launches-apple-music-radio-with-a-rebranded-beats-1-plus-two-more-stations/
Schube, Will. “What TikTok's 2020 Says About the State of the Music Industry.” The Ringer, The Ringer, 12 Jan. 2021, www.theringer.com/music/2021/1/12/22225880/tiktok-annual-report-streaming-services.
Spangler, Todd. "Spotify Hits 155 Million Paid Subscribers in Q4, Says Podcast Listening Nearly Doubled." Variety 3 Feb. 2021,
https://variety.com/2021/digital/news/spotify-q4-2020-results-podcast-1234899086/
Perratti (1)
ReplyDeleteThe introduction of streaming services to the music industry has ultimately changed the way that people consume music. Unlike radio, streaming platforms provide the user with total control over what and whom they want to listen to, with the ability to stream anywhere. Once music lovers got a taste of this on-demand service, it was only a matter of time before the music industry was forced to step up and adapt to this new form of consumption. The explosion of services like Spotify, Apple Music and YouTube has ultimately become the latest asset for record labels and producers, rather than previous revenue generators such as hard CDs and radio plays. In fact, the Recording Industry Association of America reported earnings of $12.2 billion in 2020, with $10.1 billion of that money coming directly from streaming platforms (Bonifacic). According to the same article, Spotify and Apple Music were the driving forces that led to streaming making up 83% of the recording industry’s revenue. Based on these numbers, it is quite apparent that the music industry recognizes streaming as the future of music consumption, as it is responsible for the majority of their profits. It is apparent that the public views streaming as the future as well, with Spotify reaching 155 million paid subscribers in the fourth quarter of 2020, according to a Variety article (Spangler). Without even including the rates of ad-based streaming options, streaming services like Spotify and Apple Music have seen tremendous success in premium subscriptions alone. With stay-at-home mandates and social distancing added into the equation, the music industry has seen streaming services become even more popular since March of 2020. Then as well, the absence of live concerts and festivals has likely contributed to the rise in streaming at home. The popularity of streaming services is similar to the boom in digital downloading that rose in the early 2000s, which ultimately paved the way for on-demand streaming platforms today. As other fields in media industry like film began to adapt to the rise in SVOD services for their primary source of revenue, it was only a matter of time before the music industry followed suit.
Perratti (2)
DeleteDue to the fast-paced society that we live in, it is unlikely that streaming will lose its charm any time in the near future. According to The Music Network’s article “Music streaming to hit revenue & growth highs over next five years,” the 2020 Streaming Forward report “projects paid subscriptions in the U.S. alone to reach $11.6 billion by 2026” (Eliezer). This optimistic prediction of streaming will likely be proven true as executives develop new designs and features on their platforms. For instance, Spotify’s impressive podcast strategy, which was engaged with by “25% of its total user base,” is a unique streaming feature that sets streaming even further apart from traditional means of consumption (Spangler). The expansion of streaming from more than just music, although seemingly not as popular, is likely going to play a major role in the future of streaming services. Apple Music has begun to develop its podcast feature as well, which will heighten the competition between the two platforms. By examining the numbers and rates in which people consume their content, streaming services like Spotify and Apple Music can tailor their experiences to ensure increased revenue in the future.
Perratti (Works Cited)
DeleteBonifacic, I. "Streaming Music Made Up 83 Percent of the Record Industry's Revenue In 2020," Engadget 26 Feb. 2021, https://www.engadget.com/riaa-music-revenue-report-2020-204907874.html
Spangler, Todd. "Spotify Hits 155 Million Paid Subscribers in Q4, Says Podcast Listening Nearly Doubled." Variety 3 Feb. 2021, https://variety.com/2021/digital/news/spotify-q4-2020-results-podcast-1234899086/
Eliezer, Christie. “Music Streaming to Hit Revenue & Growth Highs over next Five Years.” The Music Network, The Music Network, 31 Aug. 2020, themusicnetwork.com/music-streaming-revenue-highs/.