Streaming Set to Attract the Broadest Music Audience of All Time
While streaming has become a revolutionary means for consumers to enjoy their favorite music, there are many market indications that it will soon attract the broadest music audience of all time. In an article and video originally produced by CNBC, the success and sheer potential of streaming are explained by Edgar Bronfman, chairman of the Warner Music Group.
Music was once dominated by the idea of fans physically purchasing albums, but the internet completely changed the market for everyone. Consumers slowly stopped lining up in front of the record store, and instead found themselves behind their keyboard desperately trying to acquire the latest tracks from their favorite artists online.
As the internet expanded, the concept of streaming slowly found a foothold in the music market. While consumers were committed to buying digital tracks and albums from online companies like iTunes, streaming services like Spotify and Pandora offered the opportunity to pay a flat rate for unlimited music every month. This idea became an instant trend for consumers, prompting Apple to create its own streaming service two years ago.
Streaming could prove to be the greatest thing to ever happen to music is terms of audience connection and marketability. While people do not spend as much money on music compared to the days of online and physical purchases, the overall audience for music is expected to greatly expand. Bronfman notes that each consumer may spend “a little bit less than fanatics who were buying albums,” a concept which ultimately, “broadens the distribution base.”
Streaming is especially helpful for up-and-coming artists when considering the immense difficulties which once existed when attempting to enter the music market. Before, artists performed at their best with hopes of being picked up by a prominent record label that had the infrastructure to sell physical records. Today, a talented artist can produce music that instantly reaches millions of consumers through streaming services. In the current system, popularity and marketability become the keys to an artist’s success instead of relying on a connection to a record label.
Despite the countless benefits that streaming offers the music world, there are still some slight financial issues which must be addressed in the coming years. According to Bronfman, “The artists do make more of their money on the road these days. Spotify complains that it pays too much to the content companies. And content companies aren’t making a whole lot of money.” He follows this by stating, “I think that this is a fixed-cost model and until that subscription model grows further, it’s going to be tough to turn a lot of profits.”
While professionals are searching for answers to solve some of streaming’s financial dilemmas, there is no doubt that services like Spotify, Apple Music, and Pandora are connecting more people to music than ever before. “People think back and have a soundtrack to their lives. And songs means stuff to people,” notes Bronfman. “In a way, it’s the most compelling consumer content.”
Given the expected growth of streaming, current and emerging artist will no doubt look to use this platform to engage fans to years to come. [Source]