The present era is driving the music sector toward a new height. Then came the COVID-19, which canceled concerts, album releases, and tours as well. And the music streaming sector also has experienced the effect of storms.
You might be wondering about what is changing the music industry. What does the music streaming future look like? And how the global music streaming market has changed the sector? What challenges does the future of music streaming face, and much more?
If you are looking for an appropriate answer to all your questions, then you are in the right place. We will help you understand the main challenges, music streaming trends, and much more. The article also provides a quick glimpse of how the music streaming sector will look like.
Streaming Music Business Challenges: Check the List to Overcome Them!
The record music industry is estimated to recover from a prolonged slump, and all thanks go to the emergence of music streaming.
From 2015 to 2019, the recorded music revenues have increased drastically. The streaming market is predicted to grow at a 13% growth in CAGR. The market is estimated to reach around US$11.1 billion in annual revenue. In 2019, the music streaming industry was estimated to generate 80% of revenue, which is relatively high.
The music market globally is predicted to record a value of $70.02 billion, progressing at 3.39% CAGR for the duration between 2021 and 2025.
Factors like accelerating the number of paid music streaming subscribers, expanding music consumption, rising adoption of smart devices, the growing popularity of digital music streaming platforms, and growing integration with social channels are predicted to drive the market.
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More and more people are listening to music. The live music and concert market in the United States has experienced strong growth during 2019. Later in 2020, COVID-19 stopped the event posting, and concerts, resulting in financial impact. The music streaming industry could lose an estimated $9 billion if the COVID-19 pandemic is not lifted by the end of 2020.
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Benefits of Streaming Platform:
- Availability;
- Low Cost/No Cost;
- More content;
- Ease of distribution.
Challenges with Streaming Music
- Hard to store/organize as it requires lots of digital infrastructures;
- Difficult for hardware to process and aggregate penny payments from service providers;
- Vacillating value of streams;
- Challenging to regulate or enforce unauthorized usage;
- Artist contracts don’t address this kind of revenue.
Many challenges are streaming music faces. Check the list to know which are those challenges and how to overcome them.
End the Royalties Battle
The music streaming industry is struggling just like ketchup stuck in the bottle. NetEase Cloud Music is the fastest-growing music service, launching its independent legal store ten years ago.
The streaming platform has paved the way for many artists to distribute their streaming content in China legally. The keynote mainly focuses on the exciting developments occurring in the Chinese music market—however, the vision of placing Chinese and international independent executives and artists at the heart of streaming.
Don’t Take Growth for Granted
Music streaming is not formatted; it is a business model. However, it is not only a business model but is constraining, which provides us with one set of experiences in the market. The rise of streaming markets underlines the significant development observed in Western countries and detailed expansion to emerging markets like China in Asia and Latin America.
Refocus on Consumers
The primary mission of streaming platform like YouTube Music and Spotify is to provide excellent service to customers, while “Labels” mission is to offer the best services to artists; hence when streamers get close to artists, it is to leverage them as marketing tools to get closer listeners.
Content distributors like Google, Apple, YouTube, and many more are well-positioned to offer artists with the marketing budgets. Advanced labels are famous for having the technical capabilities to provide a digital distribution that many labels lack.
Clean and Standardize Metadata
It is a need for clean information and context, and it has created many opportunities for confusion. Now that technology has matured, the music requests have become more refined than ever. The voice-enabled intelligent assistant can be better than music curators, offering highly personalized music streaming experiences driven by input aspects like mood, traffic, heart rate, weather, and many more.
Develop Social Features
The artist community wants to create fandom and intimacy with fans. Due to the exploding popularity of streaming platforms, the streaming sector has experienced a “revival.” Three different major labels prove game changers in the sector including:
- Sony Music,
- Warner,
- Universal.
All of them post billions in digital revenue. With streaming music increasing in developing countries, the firm predicts the total number of personalities paying for services will originate at a skyrocketing rate. The recent reports attribute the increase in streaming subscriptions to the availability and competition of family plans. Additionally, people purchase intelligent speakers, and customers now accept streaming subscriptions as the music norm.
Conclusion
There are many more challenges that businesses face with music streaming. But there are ways to overcome all and to be a winner in the market. Explore all the above challenges and overcome them all in a short time.
Guest article written by:
Dilshad Durani is a seasoned Digital Marketer and Content Creator currently contributing her expertise to the dynamic team at Alphanso Technology, a leading company specializing in Eventbrite clone and PHP ticket system open-source development. Her insatiable curiosity fuels a relentless pursuit of knowledge, driving her to unravel the intricacies of changing trends, evolving marketing approaches, and ethical business practices.