How digital platforms are affecting the music industry financially?

As per the recent data, live music streaming subscriptions yield 8.5 billion dollars annually from the record business, but the music industry faces growth change as the future seems to be lined in digital platforms like social media and live streaming.

According to the music industry experts, like Steve Cooper, the CEO of Warner Music Group, with the expansion of partnerships with Facebook, Tik Tok and Snap, social media is gaining a significant foothold in the music industry. It has been generating 9 figure revenue at a breakneck pace than subscription streaming. This annual revenue stream is bouncing up by double-digit % year on year.

Social media is completely changing the way music is heard or shared. Years ago, music consumers were dependent upon CD’s, cassettes, top charts, and newspapers that underwent a total change with the introduction of Apple Music and Spotify.

The power of social media and the internet has made music available in the palms of music consumers every time. They have access to music within seconds through digital platforms to download music albums and videos.

Besides the download, the internet also gave us the option of online viewing, sharing and the biggest craze in music- streaming.

Music has taken the route of service-based business from that of product-based. With the help of streaming and social media, the music industry is losing its control over artist and musicians as artists have more control over the distribution of their music and services using technology.

It is not surprising that many artists are bypassing the industry conventions completely to become the most viral and trending artist within a short span.

The business aspect of the music industry is struggling to generate ample revenue in the pursuit of social media and technology as the internet is making it much comfortable with assessing music at a cheaper cost. However, using different platforms has made it much more difficult for artists to make a decent amount of money from just sales alone. It is somehow compulsory for an artist to complete most of their money by touring and merchandising as record labels and record sales are declining drastically in this new digital era.

The music industry is also keeping pace with changing scenarios. It generates 50% of the revenue from digital and online sales from the platforms like iTunes, Google Play,  Pandora and Spotify.

Now that people are subscribing to music streaming services more than they subscribe to Netflix, this service is growing, constantly changing the industry. It is better artists and the music industry shift their operation and business ways.

The sooner the music industry embraces positive aspects of music selling; the better would be the chances of its thriving.

After all, music is here to stay