{"id":2050,"date":"2022-03-08T17:12:57","date_gmt":"2022-03-08T16:12:57","guid":{"rendered":"https:\/\/daimoon.media\/?p=2050"},"modified":"2025-06-26T15:44:53","modified_gmt":"2025-06-26T13:44:53","slug":"how-streaming-changed-music-industry","status":"publish","type":"post","link":"https:\/\/daimoon.media\/knowledge\/how-streaming-changed-music-industry\/","title":{"rendered":"4 Ways Streaming Changed The Music Industry"},"content":{"rendered":"\n

The music business model has changed drastically during the past decade. We are sure that you remember the times when you were super excited to hear the newest song of your favorite artist, and you couldn\u2019t wait to go in the shop and buy a CD or Vinyl<\/strong>?  <\/p>\n\n\n\n

Nowadays, listening to your favorite album has become more accessible than ever through streaming. We all have heard of services like Spotify, Tidal, Apple Music, Pandora<\/em>, and many more. Those streaming platforms are easily accessible for mass consumers and also affordable. However, the impact that streaming has also comes with new realizations and challenges for artists and professionals<\/strong>.   <\/p>\n\n\n\n

As experts in the field, we can help you learn more about that! In this DaimoonMedia<\/a> article, we\u2019re helping you to expand your knowledge on what streaming is and how streaming changed the music industry for the better.<\/strong><\/p>\n\n\n\n

What Is Music Streaming?<\/h2>\n\n\n\n

Before we tell you about how streaming has changed the music industry, let\u2019s first talk about what streaming music is. Streaming music is a method of accessing audio content directly to your device without the files being downloaded onto your device, because you can then access the media later. With the introduction of streaming platforms, the public can choose from diverse libraries of spectacular albums, playlists, and songs. All available songs can be played by different users simultaneously, no matter the time, location, or device. All you need is a subscription, and you get access to an endless library of art containing all the music you want. Now, let\u2019s get into the impact this has created within the music industry.<\/p>\n\n\n\n

Easier To Discover New Artists<\/strong><\/h2>\n\n\n\n

Before the introduction of streaming platforms, new artists found it hard to get their music out. Back in the day, artists used to need a record label to help them distribute their records, but with streaming platforms, that changed. Artists can put their songs out there even without a major label<\/strong>. <\/em>In addition, it is easier for people to discover lesser known artists as anyone can put their songs onto the streaming platforms. Next to it, the distribution of the songs is much easier in digital rather than distributing physical products. One example of an artist that became successful by the use of streaming platforms is Macklemore.<\/strong> By only using the opportunities of social media and streaming platforms such as YouTube and Spotify, he managed to get his music heard and become popular without a record label.<\/a><\/p>\n\n\n\n

Eliminated Music Piracy<\/strong><\/h2>\n\n\n\n

Did you know that piracy within the music industry has crippled the industry\u2019s revenues? Statistics from the USA point out that The U.S economy totals $12.5 billion in losses each year due to music theft<\/em>. Fortunately, and with the help of the streaming platforms such as Spotify and Tidal, streaming changed the chance of illegally downloading songs and made it lower as people have access to a variety of songs and genres on the streaming platforms.<\/p>\n\n\n\n

Subscription Music Deals <\/strong><\/h2>\n\n\n\n

Everything valuable should not be easily accessible. That is why more and more streaming services are offering subscriptions deals.<\/em> With the ideas of subscription services for video platforms such as Netflix, Amazon Prime, and Disney Plus, the introduction of subscription deals to music has arrived. With millions of us paying for streaming music, and as that number is expected to grow even more in the future, the music industry is expanding more than ever. What is next? This might very well be artists signing exclusive deals with specific streaming platforms directly. That was the case of Universal Music Group<\/a> which offered exclusive deals to streaming platforms, but they stopped offering as there was a public objection to exclusivity.<\/p>\n\n\n\n

Regular Monthly Revenue<\/strong> <\/h2>\n\n\n\n

Did you know that for an Artist to get his money for a song that he records and distributes it could take from 1 to 2 years? Therefore,  it can be said that streaming has been the industry\u2019s salvation. Because of the subscription options that streaming platforms have, the music industry receives regular monthly revenue<\/em>. The facts state that around 70% of the streaming <\/a>platform\u2019s revenue goes to the right holders,<\/a> which concludes that streaming services have generated huge money for the music industry. Back in the day, everyone had to go out and buy physical copies of new singles and albums, but now thanks to the streaming platforms each of the newly released songs are instantly available to everyone. <\/p>\n\n\n\n

Royalties Per Streaming <\/strong><\/h2>\n\n\n\n

The dominant way streaming has impacted artists\u2019 lives is through paying royalties per streaming. If you are not familiar with what royalties are, we are here to tell you. Royalties are payments that permit the consumer to consume something that another musician has created or owns. Streaming services have licensed artists\u2019 music through deals with record labels and distributors to rightfully include the music in the offering of their platforms<\/strong>. How much an artist gets depends on the streaming service. Spotify is the most popular streaming platform and pays between $0.003 and $0.005 per stream. <\/p>\n\n\n\n

This can create a difficult situation because these revenues usually do not directly justify artists\u2019 marketing investments to increase streaming on these platforms. As royalties for the artist are lower, the result is a shift towards live performing, clothing, other forms of merchandise, and brand deals as the leading way to make money.<\/p>\n\n\n\n

The real challenge this creates for modern artists is \u2026 <\/p>\n\n\n\n

How can artists use the development of streaming services to the advantage of their growth?<\/h4>\n\n\n\n

Learn how streaming algorithms works<\/strong><\/h2>\n\n\n\n

Everything in the streaming platforms is about statistics. When you don\u2019t know how to use that to your advantage as an artist, we are here to help you. You may wonder, how does this algorithm work. Artificial intelligence constantly observes the audience\u2019s behavior, their interactions, what types of music they find interesting, and what music they would like to hear in the future. Let\u2019s take as an example Spotify. Spotify\u2019s algorithm works using four factors: auditory history, emission rate, listening time, and playlist features.<\/p>\n\n\n\n