Ass1: Blog 3 – The rise of music streaming and its battle with royalties (Digital Music Consumption and Data)

From cassette tapes to CD’s, the methods of music consumption have advanced greatly throughout the years and resume to do so today. It is clear that music streaming is the future of music consumption. There are a countless number of companies that already offer their music streaming services in a variety of methods. From the consumer’s perspective, music streaming is a great, efficient way to listen to music. Subscribers can pay a small fee each month to have unlimited access to their favourite artists. However, the artists, producers, song writers and all other professionals involved in the song creation process all suffer from music streaming. Majority of artists on the applications get paid a demoralisingly low amount, if anything. For example, “Lady Gaga’s manager, Troy Carter, came out and stated that Gaga has never gotten paid for the millions of streams she has accumulated on Spotify.” (Evan Stein. 2016).

Screen Shot 2016-11-30 at 15.15.01.png(Amy X, Wang. 2016, The (predicted) rise of streaming music in the US).

Seeing as the industry is slowly moving from digital sales to online music streaming, it is crucial for companies such as Spotify and Deezer to make agreeable terms deals with artists where they can make enough money off the streams they accumulate. However, some would argue that the streaming services would love to negotiate better deals with the labels they work with, however unfortunately for them, the technology kingpins like Google, amazon and Apple will make that difficult. This is because they are happy to pay larger amounts to the labels for their services.

Ultimately, as you can see from the diagram below, there is a lot of money to be made within the live music sector of the industry, and that is something that the streaming companies will have to use to their advantage.

Screen Shot 2016-11-30 at 15.29.52.png(Sarah Perez, 2016. Nielsen: Music Streams Doubled In 2015, Digital Sales Continue To Fall).

Current streaming service Pandora is hoping to build a new on demand service that may compete with the giants Apple and Spotify. It hopes to persuade its current customers to pay $9.99 a month instead of the $3.99 they do now. In return, they are claiming to use their understanding of the music customers to sell a lot of concert tickets. Tidal, one of the newest additions to the streaming music industry has a similar idea. It was recently purchased by well established artist Jay Z, and has been organising exclusive concerts, with tickets often available only to its subscribers. Therefore, by linking the services of streaming music with live concerts, these companies hope to an extravagantly higher number of subscribers.



Amy X. Wang. (2016). Music streaming has a nearly undetectable fraud problem. Available: Last accessed 30/11/16.

Evan Stein. (2016). The Problems with Music Streaming. Available: Last accessed 30/11/16.

Sarah Perez. (2016). Spotify Apple Music YouTube vevo Nielsen Nielsen: Music Streams Doubled In 2015, Digital Sales Continue To Fall. Available: Last accessed 30/11/16.


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