In this episode of behind the agent’s desk, I wanted to take a look at Spotify and Streaming services and why they are important. As one of the rising methods of getting an artist’s music out Streaming Services have never been more important than they are today from breaking new tracks to an artist being able to track fans they are hugely important all around and gaining only more traction in the music community. Here are 10 reasons they are important…
1. SUBSCRIPTION SERVICES PROMOTE ARTISTS’ CATALOG INCREASING REVENUE ALL AROUND
There are billions of dollars to be made in the music streaming market. Apple, Google, and Amazon’s recent moves into streaming provide a revenue boost to labels and create fresh opportunities in the music industry. A song on a curated playlist may be how Spotify users discover you for the first time, but because they can consume your music affordably, some will listen to every song in your catalog allowing them to become a fan of you as an artist, rather than having to cherry-pick which singles to purchase. In countries where Spotify is really popular fewer people are buying music and more are paying for the streaming service itself. This is why some artists can make 5-10 times more money on Spotify in these countries than in the U.S…
2. CURATED PLAYLISTS CAN BREAK A HIT
More and more curated playlists are becoming popular worldwide and when new tracks are introduced on those lists they can themselves become a hit as well.
3. SUBSCRIPTION SERVICES CULTIVATE NEW ARTISTS
Music’s shift to an all-you-can-stream model has a hidden perk that could benefit everyone: Data. Spotify, which is available in over 60 countries, has been amassing listening data from its millions of users. The marriage of data and music has a major impact on the industry as a whole, a process you can already see beginning to unfold. By analyzing that date one can see which artists are on the rise are already solidified etc.
4. SUBSCRIPTION SERVICES DECREASE PIRACY
Studies have revealed that piracy is down 60% worldwide and much of that is attributed to streaming services.
5. SUBSCRIPTION SERVICES MAKE THE AVERAGE MUSIC CONSUMER SPEND MORE
This translation to additional spending can contribute to additional funds landing in the artist’s pocket.
6. MUSIC STREAMING COUNTS TOWARDS MUSIC CHARTS
Audio streaming has been factored into the U.S. Billboard charts for some time along with Youtube Streaming which contributes to the formula Billboard / Beatport and other platforms use to chart music.
7. SOCIAL & CONCERT RECOMMENDATIONS = FREE PROMOTION
Spotify users can easily share what they are listening to via various feeds on the individuals’ accounts. When people listen on Spotify it’s social and your fans become promoters just by listening. Spotify also automatically recommends nearby concerts to fans who listen to a lot of your music or follow you, and nearby concerts are shown to users visiting your artist discography page on Spotify.
8. ALERTS & NOTIFICATIONS MAKES IT EASIER TO STAY IN TOUCH
Spotify automatically generates notifications to your followers whenever you release new music so they never miss any of your releases. Notifications include email alerts, push mobile notifications, and recommendations in the activity feed.
9. SUBSCRIPTION SERVICES PAY HIGHER RATES THAN ONLINE VIDEO, ONLINE RADIO, & TERRESTRIAL RADIO
Spotify pays 70 percent of “every dollar” that it receives back to its rights holders which are on par with other digital retailers which is significantly more than most other platforms. The royalty rates Spotify pays to rights holders are much higher than many alternative services such as your favorite video outlet, or online and terrestrial radio station. Spotify is paying artists more than 2x the amount that popular video partners are paying out, and they are paying significantly more than online and terrestrial radio stations.
10. STREAMING IS HERE TO STAY
Digital sales, vinyl, CDs, MP3’s and all other platforms have all taken significant sales losses due to streaming as streaming has securely planted itself as one of the top methods to get music in today’s day and age, especially in a post Pandemic world.
Troy Gilmore
Vice President
Meet the rest of the SGM team here!