The Future of Streaming

Will streaming transform the music industry like Netflix transformed television? Who do you think will emerge as the biggest player in music streaming? Why? 

The music industry is valued at $4 billion dollars this year, which is a 17% leap from last year.  Streaming has since transformed the music agency which was on a drastic decline due to falling sales. In a way, the notion of streaming music is disrupting the industry just as Netflix did not too long ago. But the difference is that streaming services such as Spotify and Apple Music do not create the artists they are merely a service that houses the product. 

The streaming services are gatekeepers in the sense that if a new artist is not in their service the likelihood of them being discovered, and shared drastically declines. To fully transform the music industry, streaming services should produce their own artists such as Netflix and Amazon now creates their own material. Removing the middleman/music labels from the equation and cutting costs. 

Netflix transformed the television industry by creating their own quality material in addition to the material from outside sources. If Spotify and Apple Music do not move to create their own labels and artists I predict that the now 3 main music labels Universal, Warner Music and Sony will soon dwindle down to one. With social media and independent labels, it is far easier to get music out into the world. If you self-recorded an album you, yourself could strike a deal with Spotify and have your music stream to the masses. 

Another advantage that music streaming services have that will ensure their growth is that they are broadening their content. They now include podcasts and videos. This is wonderful for Spotify because with videos they are tapping into the Youtube market and also with Apple's by adding podcasts. 

Spotify's pricing is fair and their database is vast. I would not be surprised if they stayed ahead of the music race and or swallowed its competitors and music labels entirely. But, if record labels find a way to tap into the streaming market by creating their own applications they could stand a chance at survival. They have failed in the past due to lack of knowledge but with what we know about streaming and past failures it is not an intangible goal. 

Currently, the music labels and streaming services work together in a partnership although with consumers relying on streaming music Spotify's and Apple Music's ability to dictate terms to continue to grow. Also with music revenue still down in comparison to the of peak of CD sales, this could mean trouble for the future of the labels.