Music streaming services have changed the landscape of the music industry. Consumers no longer need to individually purchase songs or buy CDs to listen to their favorite tunes. Instead, they’re choosing to pay a small monthly fee to music streaming services to have full access to any song they want.
So, what does that mean for the music industry?
Music streaming services have helped people everywhere listen to more music than ever. They now have unlimited access to their favorite songs, similar songs, and everything in between. This has, in turn, improved the discoverability of small artists and has helped them gain recognition. It’s also changing the way we enjoy music and has opened new avenues for live streaming experiences.
In 2019, the music streaming market size was valued at 20.9 billion and is expected to continue to expand at a compound annual growth rate of 17.8%. The services in this mix don’t just belong to Spotify and Apple Music. We’re talking about the rise of podcasts, music videos, audiobooks, and any other type of live streaming service. These services provide a hassle-free experience for the user and allow them to listen to whatever they want, wherever they want.
According to research done by the RIAA in 2019, music streaming accounted for 80% of the overall revenue generated by the recorded music industry.
If you’re interested in a career in the music business, you’ll want to keep streaming services top of mind, so you can find new ways to adapt, stay ahead of the trends, and always stay two steps ahead.
Let’s take a look at some of the trends that we predict shape the future of music streaming services in the upcoming years.
Music Streaming Service Trends On Our Radar
New Ways To Live Stream
During the COVID-19 pandemic, people used YouTube and Instagram to engage with live streaming. Unfortunately, this means consumers are no longer tuning in to their favorite radio station to listen to get their music. Instead, they’re turning on live streams from concerts, artists’ debuts, DJ performances, and everything in between. This shows us that the switch to virtual concerts during the pandemic may not have just been a temporary solution to accommodate social distancing.
We’re now seeing major players in the music streaming services, like Spotify, capitalize on live streaming experiences. So what are we predicting? Exclusive live streamings of concerts and more virtual concert series. DJ sets and shows you can only get on a particular streaming service. The opportunities are endless.
AR, VR, and AI
It’s no telling what AR, VR, and AI will do for the music industry and how these concepts will start to change the landscape of music. You may not know it, but music is already integrating into these types of experiences with Snapchat Lens, TikTok, and VR headsets. Music plays an integral role in everything we do.
MelodyVR is the newest experience platform that brings live music to you. It’s an app made for VR headsets that allows you to experience live music on a whole new level. Users can buy tickets to see live performances at festivals and their favorite music venues, bringing the experience of a live music festival directly to the consumer. In some ways, it’s the first of its kind and provides the music industry with a small glimpse into the future of streaming.
Less Advertising, More Paid Subscriptions
More and more consumers are signing up for paid subscription services. At the end of Q4 of 2021, Spotify announced it now has over 180 million paid subscribers. That means in the past two years alone, Spotify increased its numbers by over 56 million. The next few years will continue to define the music subscription industry around us as more and more individuals continue to opt-in for the paid versions.
The Rise Of The Metaverse
The Metaverse is a relatively new idea with tons of potential for music streaming services. As more and more metaverses continue to rise in popularity, the music industry will be waiting to see how live streaming will work, which music streaming services will integrate with the experience, and how it will transform the landscape of music. It’s a concept that has the potential to turn into something much bigger than we predict. However, some say Spotify is hinting at an entrance into the Metaverse already: which could be something entirely new for the music industry.
There has never been a more exciting time to be part of the music industry. If you’re intrigued with the industry and want to take a deeper dive into emerging trends of streaming services, you may want to consider a career in the music business.
It is important to have a high-level understanding of the constantly evolving industry.
At MI, we offer a Music Business School Program that features in-depth training and interactive learning experiences with seasoned music industry professionals who bring real-world experience to the classroom. Our course topics cover a diverse range of industry areas.
As music streaming services continue to rise in popularity and new ways to stream music become available to consumers, the music industry will continue to change and adapt, growing into something bigger than it ever was before. If you’re ready to be part of this change and take your passion to new heights, we highly encourage you to see if our program is a good fit for you.