Shattering the 2025 Crystal Ball: Music Tech Trends to Watch
Jan 1, 2025
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The hosts dive into the stagnation of audience growth in music streaming and the necessity for innovation. They predict gaming's transformation into a primary music discovery platform. Concerns arise over how geopolitical issues and a potential TikTok ban could impact the industry. The conversation also touches on the increasing role of smartphones in democratizing music production, alongside the complexities of AI and copyright regulations. Together, they envision a dynamic and challenging future for music technology.
Gaming is evolving into a primary platform for music discovery and engagement, redefining traditional concepts of music venues.
The music industry must adapt to shifting fan dynamics by fostering direct artist-to-fan relationships, enhancing community engagement and merchandise sales.
Deep dives
The Evolution of Music Streaming Services
The growth of music streaming audiences has plateaued, particularly in mature markets such as Northern Europe and North America. As competition intensifies, streaming services like Spotify need to explore new avenues for engagement beyond conventional top-down approaches. The early days of streaming saw exciting experiments with features that allowed for social listening and shared experiences, which have diminished over time. A renewed focus on social interaction and community-building within these platforms could enhance user engagement and retention.
Investment Trends in Music Tech
The investment landscape for music tech is evolving, requiring startups to broaden their perspectives beyond traditional music-focused approaches. Investors are looking for larger addressable markets that extend to entertainment, creator tools, and media, reflecting past disappointments with singular music investments. Companies must adapt by redefining their scope and presenting themselves as part of a bigger consumer engagement ecosystem rather than just music-centric platforms. This shift could spark new opportunities and innovations in the music tech space previously overlooked by traditional investors.
The Changing Dynamics of Fandom
Fandom in the music industry is experiencing a renaissance, with fans seeking more profound engagement and direct relationships with artists. The balance of power is shifting as artists leverage independent platforms and direct-to-consumer models, often bypassing traditional record labels. This evolution allows artists to cultivate dedicated communities, fostering greater audience interaction and increased merchandise sales. As artists redefine how they connect with listeners, the landscape of music engagement continues to evolve, suggesting that direct-to-fan approaches will gain further prominence.
The Emerging Influence of Gaming and Digital Spaces
The rise of digital third spaces, particularly in gaming, is reshaping how music is discovered and experienced. Younger audiences are spending significant time in games where music serves as a central engagement tool, blurring the lines between social media and music streaming. As the notion of social media shifts from traditional platforms to immersive gaming environments, the music industry faces both challenges and opportunities in leveraging these spaces. Future integration of music within gaming experiences may redefine not just music consumption but also the way artists and fans interact in collaborative digital realms.
Dmitri and Tristra review the industry news of ‘24 and look into the music tech crystal ball of 2025. Dmitri envisions that gaming will no longer be considered a venue, but rather a central outlet for finding music. Tristra raises questions about how a trade war and a Tik Tok ban could influence 2025. Listen to these predictions and more musings of what the next year will bring.
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!