Should music streaming be treated like radio? And what does it mean if it is? Expert analysis from Stuart Dredge, Music Ally's Head of Insight, who explores the legal and philosophical consequences
Streaming services blurring the lines between radio and streaming have significant implications for the music industry, including attracting advertising dollars and potential changes in how artists are paid for their music and how royalties are divided.
The convergence of radio and streaming platforms requires striking a balance between algorithmic recommendations and personality-led content to keep listeners engaged, while maintaining the focus on music and fostering connections between artists and listeners.
Deep dives
Streaming services incorporating radio features
Streaming services like Apple Music and Pandora have long integrated radio features into their platforms, allowing users to listen to live radio stations and curated stations. This trend of streaming services becoming more like radio has been driven by a desire to attract listeners away from traditional radio and compete for advertising revenue. Spotify, in particular, has positioned itself as a radio-killer, advocating for the on-demand streaming model over linear radio. However, despite these efforts, radio is still popular among listeners, and there seems to be a balance between radio and streaming platforms.
The rise of user-generated radio services
The emergence of user-generated radio services like Stationhead and Amazon's AMP has added a new dimension to the streaming-radio debate. These services allow anyone to host their own radio stations and talk like a radio DJ while playing streamed music. Amazon has even brought in celebrities and artists to host shows on their platform. Additionally, established radio broadcasters like Sirius XM, which also owns Pandora, are looking to merge streaming and radio closer together to cater to younger listeners who expect a more streaming-like experience from radio. This convergence blurs the lines between radio and streaming even further.
Implications for the music industry
The classification of streaming as radio has significant implications for the music industry. From a financial standpoint, if streaming services can position themselves as radio competitors, they can attract advertising dollars that have traditionally gone to radio. This is because streaming platforms, with their radio-like features, provide a familiar advertising environment that brands are comfortable with. Additionally, there is a debate about how streaming royalties should be distributed, with some advocating for a more equitable remuneration system like that used in radio. If streaming becomes more like radio, it could lead to changes in how artists are paid for their music and how royalties are divided.
The future of radio and streaming
The convergence of radio and streaming platforms raises questions about the future of both mediums. While streaming services provide more personalized and context-driven experiences with features like AI DJs and tailored recommendations, traditional radio remains important for its curated programming and human-hosted shows. The challenge for streaming platforms is to strike a balance between algorithmic recommendations and personality-led content, keeping the listener engaged and interested. It's essential for both radio and streaming to evolve creatively while maintaining the core focus on music and fostering connections between artists and listeners. The ongoing debates surrounding royalties and regulations in this changing landscape will continue to shape the future of radio and streaming.
Ep 119: Every time our Head of Insight appears on the podcast, people say how useful they find his analysis – so we're bringing Stuart Dredge back again to answer a thorny question: “is music streaming like radio?”. Stuart explains why this simple-sounding question is actually quite complex and how it could raise a number of fundamental legal issues around payments to artists and rightsholders.
Streaming platforms have always provided radio-like experiences: whether something simple like "lean back" listening – where you hit play and the platform chooses what music you hear – or more overt concepts like Spotify's new AI DJ, creating what is a recognisable personalised radio-like experience. So at what point should streaming music be classed as "radio"? Moreover, streaming services want to compete with regular radio, to attract its listeners and advertisers. What does it mean, then, if streaming and radio's boundaries are blurring? Editor Joe Sparrow puts these questions, and more, to Stuart.
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