Sabrina Carpenter, Chappell Roan, Coco Jones, and Victoria Monet are talented artists redefining the music scene. They discuss how non-superstar artists are thriving in a saturated market, focusing on sustained effort over momentary fame. The conversation dives into the impact of streaming and AI on artist strategies and revenue models. Also featured are the unique roles of platforms like SoundCloud in uplifting emerging musicians, along with the necessity of engaging fanbases through authentic connections in a fragmented music landscape.
The music industry is shifting towards supporting a diverse range of artists who build loyal fanbases rather than solely focusing on superstars.
Emerging technologies such as AI are complicating the landscape, making it crucial for artists to maintain authenticity and strong connections with their fans.
Deep dives
Shifting Focus in the Music Industry
The music industry is increasingly moving away from the traditional superstar model, focusing instead on rewarding artists who steadily build their careers and fanbases. Examples like Sabrina Carpenter, Chappel Rohn, and Victoria Monet highlight how persistence and consistent engagement with audiences can lead to commercial viability, even without mega-hits. This shift suggests that record labels are adjusting their business strategies to reflect this reality, recognizing that it is now more challenging to replicate the success of earlier giants like Taylor Swift. As a result, the emphasis is on nurturing a wider array of artists, rather than solely chasing blockbusters.
Fragmentation and Its Economic Implications
The fragmentation of music consumption has led to changes in how artists and record labels generate revenue, particularly as streaming platforms introduce thresholds that demonetize lower-performing songs. The challenge arises when artists struggle to monetize their growing, but fragmented, fan bases, compelling the industry to explore alternative avenues, such as live performances and merchandise. Record labels are grappling with a landscape where the traditional metrics of success no longer apply, as smaller, engaged communities become more valuable than mass appeal. Consequently, the industry is seeking to balance cultivating niche markets while adapting to the reduced financial returns from mainstream hits.
The Role of Superfans and Live Performance
Increasingly, artists are recognizing the power of superfan engagement, spurred by social media and live events that bolster community and brand loyalty. While streaming provides a foundation for music distribution, it often falls short in monetizing the dedicated audience segment; thus, artists are prioritizing live performances and direct fan interactions to generate revenue. For example, artists like Charlie XCX and Tinashe have honed their engagements with fans, leading to more meaningful, lucrative interactions beyond streaming. This focus on superfan ties not only amplifies the relationship between artist and listener but also leads to greater overall success in a fragmented marketplace.
Looking Forward: The Evolving Landscape of Music Creation
The rise of AI and technological advancements in music creation are anticipated to further accelerate fragmentation within the industry. While AI lowers entry barriers for emerging artists, it simultaneously inundates the market with content, making it harder for any one track to achieve prominence. This deluge of music places added pressure on artists to differentiate themselves in an oversaturated environment, regardless of whether their work is a single, double, or grand slam. As the music industry continues to evolve, staying authentic and deeply connected to fans becomes essential for navigating these complexities and ensuring longevity.
A handful of artists are having their moment. Sabrina Carpenter, Chappell Roan, Coco Jones, Victoria Monet, the list goes on. Will these artists be as big as Beyonce? Who knows, but they broke through an industry that becomes harder and harder to break through.
But how does this change the strategy for the major labels? How are the companies outside of the label system handlling things differently. What do the economics of a true non-superstar model look like?
To break it all down, I'm joined by Tati Cirisano from MIDiA Research. We first visited this topic in 2022, but so much has changed since then. Hope you enjoy!
This episode is presented by State Farm, the home for your small business needs. Like a good neighbor, State Farm is there.