Recorded music revenue has been rising again, following a decade-long decline due to piracy. The rise of social media has given the industry a much needed boost. The internet is a powerful tool for music promotion and blockchain technology offers an opportunity to redefine the business model for the entire industry.
Blockchain offers an opportunity to rethink a new business model for all of entertainment
Blockchain technology has the potential to revolutionize the way music is created and distributed, allowing for a more customer-centric approach. Blockchain can be used to facilitate payments and licenses, as well as manage the rights of artists. This could allow media companies to gain an advantage over their competition. Blockchain can also be used to simplify the creative process and provide fairer terms for everyone involved.
Artists such as Imogen Heap and Zoe Keating have already started using blockchain, but the industry needs a large number of artists to fully embrace it. The key is to reach a large enough audience to break the status quo. Currently, artists must rely on intermediaries to collect royalties, remuneration, and distribution. Ultimately, blockchain offers a new model for the music industry that will bring benefits to everyone.
Traditional record labels were the industry’s primary product
In the 20th century, the music industry relied on record labels to promote and distribute recordings. These labels often had a good sense of what was going to catch on and what would not. These labels focused on serving a select group of fans rather than attempting to reach the masses. These labels still exist, but they have had to adjust to changing market realities.
During the Great Depression, phonogram revenue dwindled to $6 million, or $117 million in today’s dollars. With the advent of radio, the celebrities music industry changed. Unlike phonograms, radio was free and sounded better. As a result, most of the big record companies were bought by radio companies. In the 1930s, CBS acquired Columbia Records and RCA bought Victor Records. These companies eventually merged to create EMI.
Recorded music revenue has returned to growth after decades of piracy-driven declines
The growth of paid streaming services has provided a boost to the recorded music industry. The Digital Media Association reports that in 2017, the US market reached 99 million paid subscribers – that’s 30% of the entire US population. Meanwhile, Sweden leads the world with 52 percent paid streaming penetration. According to Goldman Sachs, the industry will see its revenues increase from $62 billion in 2017 to $131 billion in 2030, a CAGR of 6%.
After decades of piracy-driven declines, the music industry has found new sources of revenue, including streaming services. Revenue from recorded music has increased each year for the past five years, mainly because of the popularity of these services. In the US alone, recorded music sales increased by 9.7% in 2018, with paid streaming accounting for almost half of that growth. Meanwhile, streaming services are accounting for over half of the entire industry, making up about half of the revenue generated.
