The music industry: Streaming vs. live shows


The global music industry is in the midst of a remarkable transformation, characterized by the dual forces of streaming's ascendancy and the gradual revival of live music. In this blog, we'll explore these trends and their implications in simple terms, avoiding industry jargon.

## **Shift to streaming**

Over the last decade, the way we enjoy music has changed significantly. Gone are the days of physical CDs and downloads; digital streaming services like Spotify, Apple Music, and Amazon Music have taken over. They offer a massive library of songs and albums, and people are paying for subscriptions or enjoying free, ad-supported content. This shift to streaming has not only changed how we listen to music but has also become a major source of income for artists and record labels.

## **Return of live music**

Live music took a hit during the COVID-19 pandemic, with concerts and festivals being canceled or postponed. But now, as restrictions ease, live events are making a strong comeback. These events are not only a way for artists to make money, but they also offer fans a unique and irreplaceable experience.

## **Music streaming's growth opportunities**

Music streaming's growth isn't over; in fact, it's still in the early stages of its journey. It's not only booming in Developed Markets (DM) but also in Emerging Markets (EM), which are regions where it's growing rapidly due to increased internet access and smartphone use. Even older generations are getting on board, recognizing the convenience and vast music libraries that streaming services offer.

![](<https://hedonova.b-cdn.net/Hedonova%20images/%20All%20Hedonova%20blogs/The%20music%20industry%3A%20Streaming%20vs.%20live%20shows/We%20forecast%20global%20paid%20streaming%20penetration%20to%20rise%20to%2020%20in%202030%20from%2011%20in%202021%20Streaming%20penetration%20by%20market%20(as%20of%20smartphone%20users)%2C%202011-%2030E-min.webp>)

## **Music streaming vs. SVOD**

Music streaming and Subscription Video-On-Demand (SVOD) are different. Music streaming platforms give you access to a huge library of songs, while SVOD services provide movies and TV shows. Streaming has both free and paid options, often with personalized playlists and no ads. SVOD usually requires a paid subscription and offers original content.

![](https://hedonova.b-cdn.net/Hedonova%20images/%20All%20Hedonova%20blogs/The%20music%20industry%3A%20Streaming%20vs.%20live%20shows/Music%20streaming%20penetration%20still%20has%20significant%20room%20to%20grow%20when%20compared%20to%20SVOD...%20Music%20vs%20SVOD%20penetration%2C%202021-min.webp)

## **Digital distribution's transformation**

Digital music distribution is evolving with more variety and better pricing. Different streaming platforms offer unique features, and they're experimenting with different pricing models to make streaming more accessible and affordable for everyone.

## **The impact of ad-funded and emerging platforms**

Ad-funded streaming, which provides free access to music in exchange for ads, has expanded its reach. It serves as a gateway for many new users to explore music streaming, making it more accessible to a broader audience. Additionally, ad revenues from platforms like Spotify's free tier and YouTube have grown significantly, providing a substantial source of income for both artists and record labels. This model allows listeners to enjoy music without the need for subscription fees.

![](https://hedonova.b-cdn.net/Hedonova%20images/%20All%20Hedonova%20blogs/The%20music%20industry%3A%20Streaming%20vs.%20live%20shows/and%20that%20emerging%20platform%20revenues%20will%20represent%20almost%2040%20of%20ad-funded%20streaming%20revenues%20by%202030-min.webp)

Emerging platforms like TikTok and Instagram Reels have brought a new dimension to music discovery and promotion. These platforms, known for their short-form video content, have created a space for viral music challenges and user-generated content set to songs. This trend often catapults songs to go viral, reaching a wider audience and boosting music discovery. It's not just artists who benefit; these platforms offer an alternative revenue stream through royalties and partnerships. The integration of music into social media and short-form video platforms has changed the way music is consumed and shared, expanding the reach of artists and democratizing music promotion. As these platforms continue to grow and evolve, they provide fresh marketing opportunities and revenue streams for artists and record labels, reinforcing the idea that they are a significant part of the music industry's future.

## **Digital distribution: Differentiation and pricing strategies**

The digital music distribution landscape is evolving with increased differentiation and improved pricing strategies. Streaming platforms like Spotify, Apple Music, and Amazon Music are introducing unique features, enhancing the music streaming experience and fostering healthy competition. They are also experimenting with subscription tiers, making music streaming more accessible and offering bundles with other digital services to provide added value to users. This evolution ensures a more customer-centric and cost-effective distribution of music.

![](<https://hedonova.b-cdn.net/Hedonova%20images/%20All%20Hedonova%20blogs/The%20music%20industry%3A%20Streaming%20vs.%20live%20shows/We%20expect%20Spotify%20to%20remain%20the%20clear%20leader%2C%20with%20YouTube%20Music%20and%20Tencent%20Music%20the%20main%20share%20gainers%20Streaming%20subscribers%20by%20platform%20(in%20millions)-min.webp>)

## **Major record labels' growing influence**

Major record labels like Universal Music Group, Sony Music Entertainment, and Warner Music Group are increasing their market share. They do this by acquiring independent labels, which helps them diversify their artist roster. Major labels also have the resources to invest heavily in artist development, making it easier for artists to succeed. Their global distribution networks and vast music catalogs give them a strong position in the industry.

## **Conclusion**

The global music industry is evolving with streaming at its core, offering diverse opportunities and experiences for both artists and listeners. Live music is making a comeback, and the influence of major record labels remains strong. As the industry continues to adapt, it ensures that music remains a dynamic and inclusive force in our lives.\
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The music industry is experiencing a transformation with the rise of streaming services and the resurgence of live events. Streaming platforms provide significant income for artists, while live shows offer unique experiences. The growth of streaming extends to emerging markets, and ad-funded platforms and social media like TikTok contribute to music promotion and revenue. Digital distribution evolves with innovative features and pricing strategies. Major record labels maintain influence through acquisitions and artist development. Despite changes, the industry remains dynamic and inclusive, ensuring music's continued vibrancy in our lives.

The music industry: Streaming vs. live shows

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