Tatiana Cirisano, Researcher at MIDiA Research, discusses the future of the music industry in a post-stream era, highlighting the roles of platforms like Twitch and YouTube. The urgent need to monetize consumer creation is addressed, along with the expansion of the industry and prospects such as derivative content and AI-trained tracks. The impact of streaming models on music creators and the influence of AI in the industry are also examined.
Artists are turning to social media and other platforms to connect with and monetize their core fan bases, blurring the line between consumer and creator in the post-streaming era.
The rise of music creation by fans and casual creators poses challenges and opportunities for the traditional recording industry, highlighting the need to engage and monetize these creators to tap into additional revenue streams.
Deep dives
The Shift to Community: Insights from the 2023 Music Techtonics Conference
The 2023 Music Techtonics Conference highlighted the importance of community in the music industry. Startups showcased innovative solutions to tackle challenges in the music world, displaying remarkable progress. The energy at the conference was palpable, reflecting the passion of founders and creators. This shift towards community is driven by changes in consumer behavior, as engagement with music evolves. The rise of streaming platforms has led to an overwhelming amount of music and fragmented consumption patterns, making it harder for artists to build mass audiences. As a result, artists are turning to social media and other platforms to connect with and monetize their core fan bases. The post-streaming era also blurs the line between consumer and creator, with fans actively engaging in music creation. This new era presents opportunities for artists to monetize not just through traditional means, but also by offering unique experiences and merchandise to their super fans.
The Evolution of Music Creation and Consumption in the Post-Streaming Era
The post-streaming era signifies a shift in how music is created and consumed. Rather than focusing on format shifts, the industry is now witnessing changes in consumer behavior. The overwhelming amount of music available on streaming services and the rise of creators have led to increased fragmentation, making it challenging for artists to build mass audiences. As a result, artists are seeking alternative platforms, particularly social media, to engage and monetize their core fan bases. The line between consumer and creator is blurring, with fans not only consuming but actively participating in music creation. This evolution is driven by the accessibility of AI-powered tools that enable fans to remix and create their own music. While consumption still primarily occurs on streaming platforms, the culture and fandom surrounding music now extend beyond streaming, especially in the realm of social media.
The Impact of Music Creation on the Traditional Recording Industry
The rise of music creation by fans and casual creators poses challenges and opportunities for the traditional recording industry. With the advent of new tools and platforms, fans are remixing, creating, and sharing their own music, leading to increased competition for artists and labels. However, this trend may take time to fully develop, and fans' motivation to create may not necessarily translate into increased consumption of their own music. The industry needs to find ways to engage and monetize these creators, potentially through premium tiers on platforms that offer advanced music creation features or in-app purchases. By embracing and monetizing this new category of creators, the industry can tap into additional revenue streams and maintain relevance in the evolving music landscape.
The Changing Landscape of Streaming Royalties and Monetization Strategies
Recent developments in streaming platforms' business models have sparked discussions around streaming royalties and monetization strategies. Spotify's introduction of a minimum threshold for song streams before collecting royalties has generated mixed reactions. While the threshold may make sense in terms of optimizing revenue distribution, there are concerns that it could disadvantage independent artists and favor larger labels. This change highlights the need for a more comprehensive approach to royalties that considers factors such as fandom and fan engagement, which have a significant impact on an artist's monetization potential. Additionally, the industry should explore new ways to monetize fan creations and find innovative models beyond the traditional streaming revenue model. By embracing these changes and exploring new avenues for monetization, artists and rights holders can adapt to the evolving music landscape and create sustainable revenue streams.
This week, We’re bringing you one of our favorite experiences of the 2023 Music Tectonics Conference: a fireside chat with Tatiana Cirisano of MIDiA Research. We called it Music in a Post-stream Era: a Fireside Chat, but the fire was the Santa Monica sun and the chat was on a beautiful rooftop.
As the discussion unravels, we delve into the future of the music industry, shedding light on platforms like Twitch and YouTube's pivotal roles, and the . urgent need to better monetize consumer creation, while acknowledging the industry's highly competitive nature. Explore the industry's expansion, considering fascinating prospects such as derivative content, AI-trained tracks, and branded gear.
We examine how streaming models are reshaping the types of music creators and how AI is rapidly instigating changes in the music industry. Keep listening to hear the gems Tatiana dropped and if you missed out on this year's event.
The Music Tectonics podcast goes beneath the surface of the music industry to explore how technology is changing the way business gets done. Visit musictectonics.com to find shownotes and a transcript for this episode, and find us on LinkedIn, Twitter, and Instagram. Let us know what you think!
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