How streaming will change the music industry

No Gravitation

Streaming is organically increasing. When I first wrote The Music Industry, an infinite journey way back in early 2014 I concluded the study with the chapter titled The Future, which determined how the industry would be by 2020. One section in that article covered Streaming vs Downloads, the War is open. In fact, for most people it was still unclear that streaming was going to take over from downloads – let alone physical sales. Half-way between 2014 and 2020, there is no doubt anymore about streaming dominating the industry. Plenty of questions remain though.

We are used to stating raw facts, but it is rare that we understand their meaning. Streaming took over from downloads and tons of publications mentioned it, ok. So what? If a $15 billion industry moves from one format to another should we assume that this change of format is the only real novelty? The truth is obviously much different. There are many impacts, direct or indirect. Your favorite artist may start to flop while they were successful before, and that would have nothing to do with him being urban or not. Albums won’t be released at the same date anymore. Albums won’t be in the same format anymore. We aren’t even sure if there will be albums anymore. Your country may not matter soon or, quite possibly become relevant. Marketers won’t promote artists in the same way and they won’t promote the same artists either. You won’t give the same Christmas present to your mother.  Your mother will likely start to know of the artists you listen to. Yes, the impact with the arrival of streaming is that deep.

First, it is changing the industry itself, completely redistributing the cards of the game between various markets. Second, it will require from its actors, both the labels and the artists, to fully revamp their way of working. Third, it will change your way of acting.

It is time to precisely detail all the ongoing and upcoming changes. Here is the beginning of 3 articles that will tell you exactly how the market, its actors and yourself, will evolve in the near future due to the enthronement of streaming consumption.

This first article covers the industry point of view. A lot of things have been said about streaming. People quickly started to rant against it saying platforms weren’t paying artists enough, or that it was an another much hyped fad. At some point, it was truly demonized by some – hi, Miss Swift – although now you won’t hear someone complain about it anymore. So at the end of the day, now that we have more indicators to fully understand its impact, is streaming a good or bad thing for the music industry? How is the business reacting? How will it go during the next few years? What will it change for each country? When streaming reaches its full potential will the industry be effectively dead, or will there be Thriller-esque albums released at a fast pace?

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Gonzalex

Hi MJD, This article was so interesting! To be honest I thought that streaming was killing music industry because of the low pure sales that it generates. But your article starts to change my mind, I think your CSPC will become the basic way to count the popularity of an artist. I have a question, I know you’re not a medium, but do you think, in the future, we will speak about « equivalent sales » (like in the UK) or we will speak about « equivalent stream » (like in France)? Because of the streams increases, speaking of an 10 billions streams album… Read more »

Harry Jameson

Streaming helped Drake become a superstar. His sales prior to streaming becoming so dominant was not impressive

me

I dont think streaming should count really,you have fanatics that will stream their favourite artists non stop that can get software like auto clicker that fakes youtube views.Plus i think everytime a song gets played on radio it should count also if these streaming sites count.What about when warner music took of loads of videos when they had a disagreement with youtube(https://www.cnet.com/news/talks-break-down-warner-music-pulls-videos-from-youtube/).what happens to the loss of streams for those artists.30 seconds to count as one stream is ridiculous it should be the full length of the song.Anyway thank you for your research and sharing your figures.

영배

Thanks, I’ve been looking forward to this. I know that artist CSPC articles are what *most* people come here for, but I wish we could also have more articles like this – your skills as a music business analytic are pretty much unparalleled IMO (speaking as a finance analytic myself, haha). Great job!

Rell

In your introduction, you mention how it will change the music we listen to with our mothers listening to our music and you earlier mentionned the surprising success of “Despacito” as an example of Latin acts taking over with the booming of streaming. How does that happen ? What does it have to do with streaming ?

Jase

How many seconds does a song have to be listened to before it counts as one single stream? Just curious.

Jase

Thank you, MJD!

Karalady

China market have music store like QQ Music, someone famous singer can sold millions copies of digital record in their release day due to stan fans.
Besides, I want to know who’s the next artist, and Barbra popularity analysis please, too! There’s so many discussion about you SCPS artist list in many music sitesor forms, and question where Barbra will rank, her real us and worldwide sales is one of the m ost mysterious in divas

Karalady

I see, I know ur busy in many artist SCPS, I just want to know the total physical records Barbra sold. I read your album sales figure in french form and Fan of music site, but there’s no single sales and the data was out of time, could you give us an approximately estimate of Barbra’s singles and album us&worldwide ? I know you had done some researchs and analysis for barbra before.

Dan

I’m guessing El-vis/ton. Waiting with anticipation 🙂

Karalady

Elvis will be biggest research, may two week?!

Dan

Elton had much longer career, so i wouldn’t be so sure about the length of the research, imo.

Karalady

Elvis may be died earlier, but he has many more greatest hits-album and singles

Karalady

MJD, I know ur busy in many artist SCPS, I just want to know the total physical records Barbra sold. I read your album sales figure in french form and Fan of music site, but there’s no single sales and the data was out of time, could you give us an approximately estimate of Barbra’s singles and album us&worldwide ? I know you had done some researchs and analysis for barbra before.

tom riise

Perhaps it’s Rod Stewart.

Karalady

Thank you so very much

Anthony Blanchard

Hi Dan!

Like it was said by MJD, the artist studied is none of both but is a legend too 🙂

Dan

Hey MJD and Anthony Blanchard!

In that case, i really hope it’s either Lennon or McCartney 🙂

Jack

That’s because they are single sales though not album sales. You download a track from the album and store it on QQ.

They seem quite similiar to korean digital sales in that way (pre 2013 reform)

Jack

Sorry I don’t know how to edit a comment 🙁
It costs 15 yuan to store about 10 tracks (for ANTI) so it’s about 30 cents per track. Not all western albums have been released to the site though. Maybe it’s because of me being nationalistic but I don’t see what’s the difference between this and korean music platforms.
Really hope you might reconsider and possibly take them into account in future?

Jack

I used a VPN and apparently it’s like 1-2 Yuan depending on the track, but it’s not an individual track purchase. Like the number will say 10 million, but it’s 1 million people that have chosen to store the album just 10 million tracks that have been stored. Also it has real time updates so it’s pretty transparent. There’s also Netease Cloud Music and others as well. All 5 of these streaming services have more monthly users than spotify. The only disadvantages is the number of western albums available for purchase because they only blew up in like 2015. Like… Read more »

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