In part one of our blog to see how streaming saved the music industry, we saw that in the decade that followed 2000 the music industry was brought to its knees by illegal downloading. Since then the industry has bounced back and downloading revenues are high.
But just is where all this new money going to?
There is a great deal of money circling around today’s blossoming music industry, but not on private jets or lavish drug parties. There is a niche of certain types of music and artists that are experiencing boom times, whilst others have still fallen by the wayside. In one way, streaming has saved the music industry, but it became dramatically different to what it used to be.
The Change in the Balance of Power
Things today in the music industry have changed most unexpectedly, in the last two years amazing new developments such as Napster have radically changed traditional ways of how business is operated. So where is all the money being distributed? Young new artists and bands in the past were rarely paid a penny until they produced their first album, and even then, it had to be a success if they received any reimbursement. But today there are plenty of opportunities for new and upcoming bands to make money from day one.
Go Live to Succeed
Artists that are successful live will get an immediate following, and often clips are posted on social media. This is instant marketing and free. An artist named Jones from London has been streamed on Spotify over seventy million times, which equates to some serious money. There are many thousands of artists just like Jones all over the world, and just about as little as five years ago they would probably be seeking other employment.
This was always the promise of music downloading and streaming. It always had the potential of going viral and achieving great revenues. The biggest problem to the industry is an age old one, and that is piracy. But Spotify made a pledge to eradicate piracy, and the way they went about it was to find out a fair price for downloads.
However, the artists only receive a minuscule amount of money for each stream, and a debate has been rolling on about how much it actually should be. There was a recent report by Rolling Stone magazine that highlighted that the bigger record labels and music stars get a far higher rate than many others. This is no different to the old days which were unfair too, and the industry does not have seemed to have learned from its old mistakes.
The Future of the Music Industry
No matter how the cake is cut or the way the revenues are split and distributed, it does not alter the fact that the future of the whole music industry for the time being is in streaming. There is not any foreseen return to the past of highly priced CD’s or records. In any industry you have to develop and change with new technologies, the music industry is no different and by embracing streaming it has survived to live another day.