Happy Nice Mall

Streaming has freed the music industry from the jaws of the internet. But the complex picture of the last 20 years shows that surviving an online revolution is not the only hard part. After that it may be even more difficult.

Music was one of the first industries to feel the sonic boom of the internet, starting with song sharing websites like Napster and later iTunes digital downloads in the late 1990s. This was exciting for music lovers, but new ways to listen and buy (or not buy) music have pushed industry sales into a crater.

Now, mostly thanks to people paying for all-you-can-eat music streaming services like Spotify, music is financially healthy and reaching more people than ever before. But all is not well.

Even now, the music industry in the United States generates less revenue than at the peak of CD. There is fierce debate over how long the gravy train from the stream will last. And many musicians and others say they don’t share the spoils of digital transformation.

I wanted this newsletter to answer a direct question: Is the music industry an internet success story or not? There’s no simple answer to how messy it can be when technology shakes up an industry, and it may take decades for all participants to feel like winners of the digital revolution – if that’s possible.

First, I’ll lay out the case that the music industry is doing a great job. more than 500 million People all over the world pay for digital music, mostly for services like Spotify, Apple Music or China-based Tencent Music. These services have given the industry something it has never had before: fixed cash flow monthly.

The industry also makes money in millions of ways. When you watch a music video on YouTube, money flow to the people responsible for this song. TikTok pays Record labels featuring popular songs in videos. Perhaps there has been a strong association of social media and music rather than books, movies, or other traditional sources of entertainment. both have grown in popularity.

It would be hard to predict when the internet seemed to be on its way to dust the industry. “It’s crazy that music is considered a success right now” Ben SisarioSaid my colleague, who covers the music industry for The New York Times. “Now the question is: Can growth continue?”

Oh yes. Dark cloud. Music industry revenue has been growing steadily since 2015, but revenue from all sources, including streaming subscriptions, CDs and royalties from elevator music, is still lower than it was in 1999.

Total industry revenue at the time was approximately $24 billion adjusted for inflation, and revenue was $15 billion in 2021. according to this Recording Industry Association of America. (Global sales data shows a similar trajectory from a different music trade group.)

There isn’t an infinite number of people willing to pay the $10 a month commute in many countries to access loads of songs on their phones through a service like Spotify. This is what worries people who believe the music industry’s digital success is at its peak.

I also told me that there is concern in the industry. even the greatest songs or albums are not as popular as hits once. There is so much music and entertainment at our fingertips that not every new song is as remarkable or valuable as music was a decade ago.

Ben also wrote that 99 percent of artists who aren’t as famous as Beyoncé tend to say their songs have millions of streams. can convert to penny for them. If the music industry is successful, but many musicians feel like they’re missing out… is that really success?

Pessimists can be wrong. People have been saying for years that Netflix can’t keep adding paying customers, but it has and is now copying the entire entertainment industry strategy. Many musicians are excited about new ways to reach fans on their own terms, including through the website. group camp and essentially a the way to transform a digital product one-of-a-kind thing.

But the combination of majesty and anxiety in music running theme in this newsletter. The pre-internet days weren’t all that great, but the disappointments with the digital revolution are also real.

Before you go …

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