Recorded music revenue has started to recover after decades of decline, thanks to Streaming services. This new trend is helping to spur growth in the music industry, which is a business of relationships. However, it is important to note that piracy is still an issue. To ensure your business’ success, it is critical to avoid piracy and stay up to date on new trends. Below are some of the top trends in music.
Recorded music revenue returned to growth after decades of piracy-driven declines
The record industry has seen its revenue return to growth after decades of piracy-fueled declines. The increase in physical recorded music sales was due in large part to increased streaming. While streaming has helped drive up sales, the revenue share given to rights holders has decreased. Further, the music industry is facing a number of regulatory reviews, which could further reduce the share given to rights holders. While streaming has revolutionized the music industry, it is critical that music companies return more value to the music community to help fund the next wave of innovation and growth.
In a recent study, the Motion Picture Association of America commissioned L.E.K. Consulting to estimate the global losses due to piracy. Unlike the motion picture industry, however, there are no comprehensive industry studies of recorded music piracy, but many of the building blocks are available in industry publications. For instance, the 2006 Global Recording Industry in Numbers from the International Federation of Phonogram Industry estimates that 20 billion songs were illegally downloaded worldwide in 2005.
Streaming services are driving growth
The The VIP Roll emergence of streaming services has changed the way consumers consume television. Instead of watching traditional broadcasts, these services offer live TV, movies, sports, and international content. These services require servers, content, and a user interface. Streaming services are relatively new, but their growth has prompted traditional television networks to try their hand at launching their own services. For example, Disney and NBC Universal have both announced plans to launch their own streaming services.
Streaming services are becoming more popular, and most of these services offer original content, rather than clearinghouse content. This strategy has several advantages, including the potential to keep viewers longer on the website and promote customer retention. Also, streaming services can capitalize on network effects by encouraging viewers to recruit friends and family to sign up for their services.
Streaming services are driving growth in the music industry
The music industry is on the cusp of change. As the streaming industry continues to grow, the future of traditional distribution models is up for grabs. If you think you’ve seen the last of the vinyl era, think again. There’s a new wave of distribution channels and user experiences coming along with streaming.
Streaming services have a huge potential for growth, but they still need to prove their financial viability. Despite a 3% decline in listening time from Q4 2017 to Q2 2020, Spotify grew its paid-streaming subscribers and Monthly Active Users by 29% and 15%, respectively.
Streaming services are a business of relationships
As streaming services become more popular, it is critical to understand consumer preferences and build a connection with them. One way to do that is by personalizing recommendations. This can be as simple as sending a note to your customer or as complex as developing an advanced content recommendation engine based on aggregated customer data. For example, consumers often look for new video content and streaming services can partner with studios to release it ahead of time.
While the growth of streaming services has accelerated, they must be careful to manage their costs and keep their customer bases happy. While many investors assumed that wealthy households would subscribe to multiple streaming services, recent research has shown that household subscriptions are not as sticky as they first thought. While consumers may subscribe for a short period of time because they are intrigued by the new content, they will eventually unsubscribe. This could result in higher marketing costs for streaming companies.
Influence of social media on the music industry
Social media has changed the music industry in a number of ways. First of all, it has opened the doors for niche music. Niche music has been a hugely successful way for many musicians to reach success. In the past, musicians had to appease the masses and work hard for their popularity. Now, talented musicians can be incredibly successful by creating niche music and gaining thousands or even hundreds of thousands of followers.
Another way to use social media for music promotion is by using it as a tool for announcements. Social media allows artists to reach out to their fans directly, and this creates a closer connection. This has also opened up new avenues for music consumption.