Music Industry is facing a dramatic change because of streaming music library and record labels. The IFPI has reported that global recorded music revenues have hit $19.1 billion.
Here are 10 trends that will reboot the music industry in the coming years:
Radio is Taken Over by Streaming
Streaming is getting popular among the younger audience and podcast are looking like a Netflix moment for radio and start stealing older audiences.
Deflation in Streaming
Inflation has outpaced streaming music. Netflix has stayed ahead of inflation; Spotify and co. have fallen behind because Netflix provides exclusive content for lower rates.
Deep catalogue has been the investment fund of labels for years, but with most catalogue streams coming from music made in this century, the catalogue values have turned upside-down.
Labels as a Service(LAAS)
Labels need to get ahead of this trend by better communicating the soft skills and assets they bring to the equation.
Value Chain Disruptor
LAAS is a part of a wider trend of value chain disruption with multiple stakeholders trying to expand their roles.
Tech major bundling
Music is going to become just one part of content offerings from tech majors, and it will need to fight for supremacy, especially in the ultra-competitive world of the attention economy.
Streaming – YouTube especially – propelled Latin music onto the global stage and soon we may see Spotify and T-Series combining to propel Indian music into a similar position
Now, new streaming-era artists increasingly do not want to be constrained by the album format, but instead want to release steady streams of tracks to keep their fan bases engaged
Labels will have to accelerate their shift to post-album economics, figuring out how to drive margin with more fragmented revenue despite having to invest similar amounts of money into marketing and building artist profiles.
The Search for Another Format
In 1999 the recorded music business was booming, relying on a long-established, successful format that did not have a successor. 20 years on, we are in a similar place with streaming.
Music Gateways is a good place to choose your music from. It is available with music library, record label and streaming. You can choose from almost unlimited songs of many categories.