What is the real cost of accessible music
Digitization and its impact
The internet has been a space where people have come together to connect and learn by creating, consuming, sharing, and networking through different platforms and mediums. Therefore, it is no surprise that with the digitization of music and the popularity of streaming services, there has been a transition in the culture behind different genres.
The article "Apple Music, Spotify and a Guide to Music Streaming Service" by Madi Alexander and Ben Sisario explains the recognition of talented artists and the competitive market within the music industry. They state that different platforms " ranging in price from free to $19.99 a month,... streaming services offer varying levels of control to the user — from customizable radio stations to on-demand listening, in which users can pick the exact song they want to hear. Some services require listeners to be connected to cellular data or Wi-Fi, while others allow them to save songs to their devices for listening offline in places like airplanes and the subway." (Sisario, 2016) Some platforms like Spotify, SoundCloud, and Apple Music are the most widely used, generating the most revenue. However, it can be somewhat challenging to provide space for all artists and albums on all streaming devices. As Madi Alexander and Ben Sisario state, "Not all streaming services have the same artists and albums, often because of contractual issues over rights and royalties."
Additionally, each streaming platform offers different things also depending on the subscription the user has. When analyzing the article, "How Spotify Works: Business Model and Revenue Streams," Spotify is identified as an " on-demand music streaming service that allows users to browse through a catalog of music, licensed through multiple record labels, and create/share playlists with other users. This internet radio service that provides access to over 100 million songs is available for most modern devices." Spotify is extremely successful because it centers the experience around the users, using data to engage users through podcasts or music they enjoy. It even has a DJ feature which creates playlists based on artists or songs the user already enjoys. As the article emphasizes, the principal attractions of this leading streaming platform include high-quality audio, personalized profiles and recommendations, easy access/ catering to lifestyle, and the convenience of accessing one's profile on different devices and accessing various libraries, playlists, and trends. Furthermore, they offer advertisers precise targeting, creative freedom, flexible pricing, and the ability to track their performance. The popularity, especially among Gen Z, allows these streaming services to develop revenue streams according to subscriptions, benefitting advertisers, creators, and listeners.
My favorite music
Some of my most recent favorite songs on Spotify Premium include Agora Hills by Doja Cat, Busy Woman by Sabrina Carpenter, and Stay Ready by Jhene Aiko. Doja Cat's record label is RCA Records, owned by Sony Music Entertainment. Sabrina Carpenter's label is Island Records, owned by Universal Music Group. Then Jhene Aiko's record label is ArtClub International & Def Jam, also owned by Universal Music Group. Doja Cat's song has about 695,595,397 streams, with about $.004 payout per stream. That would generate about$2,782,381, of which Doja Cat would receive about 15%, or $ $417,357, while the label receives about 50%, or $1,391,191. The producers and others involved in the process receive about 20%, or $556,476, and Spotify receives about 15%, or $417,357. Sabrina Carpenter's newer song has about 92,531,333 streams, with the same payout per stream, so that generates about $$370,125, of which she receives about 18%, or $66,623, the label 50% or $ $185,063, Producers and others, 22%, or $81,427, and Spotify receives about 10%, or $37,012. Jhene Aiko's song has about 309,830,108 streams, with the same payout per stream of $.004 generating about $1,239,320 of stream revenue. Jhene receives about 20% or $247,864, The label, 50% or about $619,660, producers and others 20%, or about $247,864, and Spotify receives about 10% or $123,932. Since I have a premium Spotify subscription, and listen to about a thousand songs per month it costs me about 1 cent to listen to each of these songs.
The Pros and cons of streaming
Some of the pros of streaming services like Spotify include how accessible music and sharing it has become. There is also a global reach of music, especially when marketed in conjunction with social media, and makes discovering artists much easier. However, some cons may be that there are lower artist payouts, which is especially difficult for newer or underground artists. Also because of how dominant the major labels are (the top 3) and how oversaturated the market is, it limits the discovery of other genres or independent artists.
Conclusions
Although the evolution of digitizing the music industry has transformed the way that music is consumed, making it more accessible and inclusive, it also carries extreme financial implications. Major labels as I mentioned like Sony or Universal Music Group take up a lot of space and dominate revenue streams. However, these platforms also offer convenient access to various artists, genres, songs, and albums for a relatively low cost, and attempt to fairly compensate artists who share their talents. However, even these big artists that I analyzed only get a small cut of their song's streaming revenue, therefore streaming would not be a sustainable source of income, especially for smaller independent artists. Regardless, with the supplementary income of social media, merchandise, concerts, etc. musicians can create a community and culture, and develop a rewarding career.
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