Mark Mulligan, a music industry analyst from MIDiA Research, and Tatiana Cirisano, a trend specialist at the same firm, dive deep into the bifurcation theory of the music industry. They engage in a lively debate about traditional versus innovative music consumption models. Highlights include the impact of streaming on audience engagement, the challenges artists face in monetization, and how platforms like TikTok are reshaping fan experiences. Their insights reveal the evolving landscape of music and the need for artists and labels to adapt.
The podcast underscores the bifurcation in the music industry between passive streaming consumption and interactive fan engagement, necessitating strategic adaptation.
Mark Mulligan and Tatiana Cirasano highlight the generational shift towards active participation with music, indicating a demand for engaging experiences over traditional listening.
The challenges faced by artists in the streaming era reveal a pressing need for industry reforms to better support artist income and foster audience connections.
Deep dives
The Evolution of Music Consumption
Music streaming has transformed the industry by shifting how consumers engage with music, moving from physical formats to digital access. The podcast discusses Mark Mulligan's observations from the 2019 Music Tectonics conference, emphasizing that while streaming created a resurgence in the music business, it largely treated music as a utility rather than a means for deeper connection. The feeling of passion and identity previously associated with music is perceived to have diminished, as listeners now compete with a plethora of entertainment options, such as gaming and video streaming. This saturation of media has influenced the music industry, making it vital to adapt to evolving consumer behaviors and preferences.
Bifurcation in the Music Industry
A central theme explored in the podcast is the concept of bifurcation, reflecting a division within the music industry between traditional listening and interactive fan engagement. On one side, 'listen' represents music consumption primarily through streaming platforms, while 'play' signifies a more dynamic engagement involving fan interaction, sharing, and creative participation. Mark Mulligan and Tatiana Cirasano debate this bifurcation, highlighting the need to recognize the parallel universe emerging alongside streaming. This notion encourages industry stakeholders to reconsider their strategies as they navigate the changing landscape of music consumption and fan engagement.
Changing Consumer Behavior
The podcast emphasizes a generational shift in consumer behavior, particularly among younger audiences who seek interactive and engaging experiences with music. Today's consumers are moving beyond passive listening to participate actively in music through platforms like TikTok and Fortnite, favoring remixing and social interactions over traditional playlist curation. This transition presents a challenge for streaming services that primarily rely on passive consumption models and may not cater to the desires for active engagement exhibited by this new generation of fans. The need for the industry to adapt to these changing preferences is underscored, particularly as artists also pursue new avenues for connection and income.
The Artists' Dilemma
The podcast highlights the struggles faced by artists in the era of streaming, illustrating the disconnect between initial promises of revenue generation and the reality of low earnings from streaming services. Many artists have experienced disillusionment as streaming was expected to create a sustainable income but has instead led to frustration and diminished interaction with fans. As a result, some artists are migrating to social media platforms to establish meaningful connections with their audiences, while others are simply giving up due to the perceived lack of opportunities. This sobering reality sends a clear message about the need for change in the industry's approach to artist support and engagement.
The Future of Music and Engagement
Looking forward, the podcast suggests that streaming and social interaction will not only coexist but may inform the future of music consumption and artist engagement. Both Mulligan and Cirasano call for a balanced approach that embraces the strengths of both models, arguing that while passive listening through streaming remains dominant, the interactive engagement from social platforms is equally critical. However, real concern exists regarding the sustainability of this bifurcation if the industry fails to recognize the need for both listening and active participation. Ultimately, the call to action is clear: the music industry must devise innovative strategies to foster fandom and meaningful connections to adapt to the evolving landscape of music consumption.
It's been five years since Mark Mulligan of MIDiA Research gave the keynote at the first Music Tectonics Conference. This year we had him, along with Tatiana Cirisano, back to Music Tectonics. Instead of the standard conference keynote (because why would we do standard?) we had an election-year style debate that we called The Great Bifurcation Debate. Tune in as they each argue their side – “Play” and “Listen” and their observations for what the future may hold with each.
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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