Two recent trends that contribute to current online music distributions which impact artists, record labels and consumers, which is continuously growing would be using online platforms like Spotify and Tiktok to stream their music as well as having the current ability to have concerts through live streaming as right now in a current pandemic they cannot have in-person performances.
Impact on Artists
An artists main aim is to get their songs out, sold and listened too, stay popular and build their fan base. Streaming platforms allow artists to do so. Spotify and similar platforms allow artists to give music to their fans and allow unlimited streams. This is useful as it collects royalties to pay the artist but it's a low amount as it is all down to the number of individual streams for the artists compared to the amount they would have got if selling physical copies were still popular. Spotify pays between £0.0021 and £0.0036 per stream. TikTok is an app that not only streams but allows artists to connect with their fans through dances and the use of songs on the app gives the chance of the song going viral as fans will go to streaming apps for the full song. TikTok pays artists £0.021 per view (2019). The artists could be building their fan base and if they use it to create videos they may also collect income by being part of the creator’s fund.
Online streamed concerts can be beneficial to be able to achieve artists aims and also be able to build a connection with their fans. In the current pandemic, there are no live performances, online live streams are currently the best way round it. They're cheaper than stage performances. There is no limit on the number of views or where they live in the world meaning you can get a good income as there is a smaller range of bills and can sell more tickets compared to a size of a venue. It is also an opportunity to boost their ticket sales for their postponed concerts as it might peak interest from their fans.
Impact on Record labels
Record labels benefit from these trends as the contracts that artists usually have with their record labels is that the labels tend to get paid before the artists to pay off the advance they got when they recorded their albums. The recent trend of streaming can impact record labels positively as they will have more than one artist attached. Streaming platforms pay the right holders, usually record labels, a minimum amount of revenue which for Spotify is around 65% and then get more from the number of streams. When it comes to Tiktok streaming record labels will get a small amount of revenue as well as an artist but overall with streaming as there is no direct sell there is a difference in what they would collect from the physical sale of a CD.
Live streams is a trend that record labels will also be positively impacted. If the live stream concert is a label showcase they will get more awareness about them and can show more than one artists at the same time which all artists will get paid differently whereas a direct concert from an artist will bring in fewer sales. As this trend benefits the label they will supply the artists with streaming equipment which is cheaper for them as they aren’t paying for a mass venue.
Impacts on Consumers
The trends of Streaming and Online live streaming will have a positive impact on consumers. The use of Streaming platforms will benefit the consumers financially as it is a cheap or free way of getting a wide range of music from different artists all in one place and it is up to them who they listen too. Some are free whereas some need to pay a membership fee. Platforms like TikTok is free and then spotify offers a free service with adverts and it also offers different membership and prices for example a single membership is £9.99 a month. There are multiple different platforms that offer different content like the videos, dancing and challenges that get released on TikTok. The trend of online live streaming for consumers allows them to connect to their favourite artists at a cheaper price compared to live stage performance and will help them get out of their lockdown/pandemic routine and gives them something new to do. It could be refreshing.
References:
Figueroa, L., 2020. What Are the Advantages of Online Concerts?. [online] ICSB 2007. Available at: http://www.icsb-2007.org/the-advantages-of-online-concerts/ [Accessed 18 February 2021].
Gallagher, W., 2021. UK investigating whether Apple Music, Spotify, and others pay artists fairly | AppleInsider. [online] AppleInsider. Available at: https://appleinsider.com/articles/20/10/16/uk-investigating-whether-apple-music-spotify-and-others-pay-artists-fairly [Accessed 18 February 2021].
Hall, S., 2020. This is how COVID-19 is affecting the music industry. [online] World Economic Forum. Available at: https://www.weforum.org/agenda/2020/05/this-is-how-covid-19-is-affecting-the-music-industry/ [Accessed 18 February 2021].
Prsformusic.com. 2021. Live streaming: what do I need to know?. [online] Available at: https://www.prsformusic.com/royalties/online-royalties/live-streaming-advice-for-music-creators [Accessed 18 February 2021].
Ujam Shop. 2021. Top Music Industry Trends in 2021. [online] Available at: https://www.ujam.com/blog/top-music-industry-trends-in-2021/ [Accessed 18 February 2021].
Wong, M., 2020. How to make money from virtual concerts. [online] IQ Magazine. Available at: https://www.iq-mag.net/2020/03/how-to-make-money-from-online-concerts-and-events/#.YC647UiTKyI [Accessed 17 February 2021].
Spotify. n.d. Spotify Premium: 1 Month Free - No Ads. [online] Available at: <https://www.spotify.com/uk/premium/> [Accessed 18 February 2021].
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