The music industry has undergone a significant transformation in recent years with the rise of music streaming. According to the International Federation of the Phonographic Industry (IFPI), there has been an 11.5% growth in music streaming revenues to $17.5 billion, with streaming now accounting for more than two thirds (67%) of the global recorded music market. This represents a slight increase from 65% in 2021. While this growth is certainly impressive, it is not without its pros and cons.
One of the most significant advantages of music streaming is that it has made music more accessible than ever before. In the past, fans had to buy physical copies of music, either in the form of CDs or vinyl records. This made it difficult for people to discover new music or listen to a wide variety of artists. With music streaming, fans can access millions of songs from around the world with just a few clicks. This has led to a more diverse and inclusive music industry, where artists from all backgrounds and genres have the opportunity to reach a global audience.
Furthermore, the rise of music streaming has also had a significant impact on the catalog music market. Catalog music refers to older music that is still popular and in demand. Thanks to streaming, fans now have access to a vast library of catalog music, allowing them to discover and enjoy classic songs and albums from the past. This has led to increased revenue for older artists, many of whom are no longer releasing new music. The late David Bowie and the band Fleetwood Mac are just two examples of artists who have benefited from the rise of catalog music streaming.
In addition to these examples, many other older artists have seen a boost in their revenue thanks to the rise of catalog music streaming. This has allowed them to continue earning money from their music, even if they are no longer actively releasing new material. It has also allowed younger generations to discover and appreciate classic music that they may not have otherwise been exposed to.
Another benefit of music streaming is that it has created new revenue streams for artists and record labels. In the past, the only way for artists to make money was through album sales and touring. However, with the rise of music streaming, artists now have the opportunity to earn money from streaming royalties. This has allowed many artists to earn a living solely from their music, without having to rely on other sources of income.
However, there are also some downsides to the rise of music streaming. One of the biggest concerns is that streaming platforms do not always pay artists fairly. While some artists have been able to make a significant amount of money from streaming, others have struggled to earn a livable income. This has led to debates over the fairness of streaming royalties and calls for greater transparency from streaming platforms.
Another issue is that the rise of streaming has led to a decline in physical music sales. While streaming has made music more accessible, it has also contributed to the decline of record stores and other physical music retailers. This has had an impact on the music industry as a whole, as many artists rely on physical sales for a significant portion of their revenue.
Despite the decline of physical music sales, there has been a resurgence of interest in vinyl records. In fact, according to the IFPI, vinyl sales increased by 32.2% in 2021, representing a continued trend towards physical music sales.
In conclusion, the rise of music streaming has had a significant impact on the music industry, with streaming now accounting for over two-thirds of the global recorded music market. While there are certainly benefits to this change, such as increased accessibility, new revenue streams for artists, and increased revenue for older artists through catalog music streaming, there are also concerns about fair compensation for artists and the impact on physical music sales.
Curious about where we got our information for this article on the growth of music streaming? Look no further! We’ve compiled a list of our sources and their URLs in a handy-dandy table. From the International Federation of the Phonographic Industry (IFPI) to Forbes to Rolling Stone, we’ve got you covered. Click away and dive deeper into the world of music streaming and its impact on the industry.
|International Federation of the Phonographic Industry (IFPI)||https://www.ifpi.org/|
|Forbes – “The Resurgence of Vinyl: How an Old Medium Is Driving Music Sales”||https://www.forbes.com/sites/josephdeacetis/2021/06/22/the-resurgence-of-vinyl-how-an-old-medium-is-driving-music-sales/?sh=743c8f7d66b1|
|Rolling Stone – “How Streaming Is Changing the Sound of Pop”||https://www.rollingstone.com/music/music-features/how-streaming-is-changing-the-sound-of-pop-752414/|
|CNBC – “The Pros and Cons of Music Streaming in 2021”||https://www.cnbc.com/2021/12/07/the-pros-and-cons-of-music-streaming-in-2021.html|
|The Guardian – “David Bowie’s back catalogue helps boost UK music sales to 21-year high”||https://www.theguardian.com/music/2016/jan/05/david-bowie-back-catalogue-uk-music-sales-21-year-high|