Title:
The Greatest Effects and Potential Threats of Streaming Platforms in Reshaping and Endangering the music indistry.
Research questions
What are the biggests influence and potential threats that streaming platforms are having in reshaping or threatening the music industry？
Abstract
In the current global entertainment market, streaming platforms has become the way most users entertain themselves. Similarly, music has always been a important entertainment, the combination between streaming platform. and music industry is inseparable. Music marketing relies on streaming platform. The purpose of this research was to explore the connection between music industry and streaming platform, to discover advantages and disadvanatges of streaming platforms to the music industry. This research will combine the information from two article, ‘Making Sense of Global Music forecastss’ and ‘Music Business Worldwide’ to forster a landscape of music industry, which is valuable for music publishing and marketing company for them to adjust their business strategies, to better accomodate the needs and characterictic of a streaming platform. markets.
Introduction
The rise of streaming platforms has transformed music consumption, particularly among youth. Approximately 75% of individuals aged 18-24 curate their own playlists, promoting personalized music experiences and peer sharing (Media Research, 2020). This trend enables music producers to identify emerging preferences, especially a growing interest in electronic music, and adapt their strategies accordingly. This study aims to explore the relationship between youth music consumption, the role of short video platforms, and the financial challenges faced by independent artists. By analyzing streaming data and revenue models, the research will provide recommendations for navigating this evolving landscape and ensuring the sustainability of independent music production.
Growth in Youth Music comsumption.
Streaming platform. is helping expend the music consumption markets. Nowadays, a lot of young peopl utilize these streaming platsform. to listen to music, and often create their own playlist. Data from Media Research indicates that approximately 75% of individuals aged 18-24 curate their own playlists [Media Research, 2020]. This tendency of personalizwed own playlist, reflects a growing music sharing rate among peers. Younsters share their playlists, and they are more likely to discover new music, which promote the effeiciency of music marketing. For the music industry, music producers can use this information--- that the younger people tends to listen to music, to identify emerging trends, and produce music in a right direction( such as increased focused on eletronic music), to cater to the youth music makrtes. Therefore, this eneables music markters to better promote the music in a cost-effective way and foster stronger connection with their target audience.
The videolization of music
The ‘ Videolization’ is shaping the prodcution direction of the producer. ‘ Videolization’ suggests that music marketing and publishing has increasing reliance on short video platforms( Tiktok, Youtube). This treand encourages artists to focus on producing content that is suitable for platforms. Thus, music producer and marketor may become increasingly dependent and familiar on the promotional strategies of the platforms. To be mentioned that, Ai generated music, will become popular in music industry beacuse it charactrized by its eaase of dissemination and replicability, which fits well with the short video platsform. However, this efficiency may also lead to a homogenization of musical styles across these platforms, as creators gravitate toward familiar formulas that resonate with audiences. Ultimately, while videolization offers new opportunities for exposure and engagement, it also poses challenges regarding originality and diversity in music.
Limitations on independent Artists Revenue
While the rise of short video platforms presents new opportunities for music promotion and marketing, which imposed limitations on the revenue of independent artists. For instance, ByteDance's management is currently working to "trim down" the revenue share allocated to record labels and other music rights holders [MBW, 2022].Despite the growing adueince of streaming platforms, the revenue generated from music of the platforms remains low; in 2021, Tiktok paid only$1.79 million to record companies, which accounted for mere 4.5% of it total revenue [ MBW, 2022] This is a concernable number, as it indicates the independent musical struggle with receiving fair compensate for their efforts, despite the increasing demand for music content. This inadequate revenue may undermind their passion and could have a great impact on the music production area. If music productor cannot sustain themselevs financially, the richness and diversity of musical innovation will decrease,eventually affect music industry’s overall vitality.
The growth of subscription revenue on streaming platforms is significantly reshaping the revenue direction for music industry. As the streaming platforms invented new function to enhance user and subscriptions, the results are : in 2022, subscription revenue increased by 4%, while the number of subscribers surged by 16%, highlighting robust market demand for paid services [MIDiA, 2023]. And also, the users of video platform. are increasing willing to pay for subscription, in light of the declining adversting revenue in 2022[ MBW,2022]. TThis shift has led to a growing tendency toward direct copyright payments, moving away from the revenue-sharing model that depend heavily on the amount of subscription. This changes will be chanlleging for musician to adapt themselves in a new marketing way. Overall, these changes will potentailly imprive the financial stability for publishing companies, but unstable for idenpendet artists, a new marketing startegies will appear within the industry.
Finding
The finding of this paper are, streaming platforms drives youth consmer market through personalize playlists, increasing the marketing effciency. However, the music industry relies too much on short video platform, which causes music production being homogeneously, which will make the revenue lower for indepndent artists. Furthermore, the changes through subscroption revenue is reshaping the strategies of music company, benefiting music publishingcompanies, but also make it hard for indepednet musiciians. This contradiction reflects there will be both opportunities and threats are manipulating the tendency and trends of future music production, and marketing. Basically, music industry is a industry under the protection and disturbution of streaming platforms, which reminds the music industrer to better adjust in streaming platforms, for a better revenue.