I am an avid music listener. I still buy albums in both CD and digital form, and am always looking forward to new releases from my favorites.
One of the growing trends is the move toward emphasizing digital releases – albums, singles, EPs, videos, all instantly available! And most of the time, you can find them without paying a dime. Officially, you can listen to and/or watch videos on YouTube, Vevo, Spotify, Pandora, and other digital services. Unofficially, torrents, downloads, and other less legal forms are still available and rampantly used.
The problem the music industry is facing is how to maximize the amount of money they can make from their artists’ music. Album sales, and for the first time in years, digital sales, are down, and the main culprit being listed is Spotify.
Artists, famously, have pulled their music (such as Taylor Swift) stating they aren’t receiving enough compensation. In an article (http://www.cnet.com/news/taylor-swifts-record-label-disputes-spotify-pay-claims/), it is cited that Taylor Swift was paid $500,000 for her catalog on Spotify, which included all of her albums up to and including Red. 1989 was not yet available on the service at the time. Reading the article, it’s stated she could earn up to $6 million a year globally with Spotify based on user base and growth. To me, that’s a hefty sum.
Since I am not privy to the payment models Spotify provides for artists, I cannot speak to the level of compensation that is appropriate. What I will say is that if it means retaining artists, I would gladly pay up to $15 a month for my Premium subscription if it means more money making it into the artists’ pockets.
Where I think the issue lies is not just with Spotify or the payment models, but how much money the labels are taking, how much is being sent to producers and writers, as well as the artists. Sony BMG is currently embroiled in a lawsuit with 19 Records (the label behind American Idol album and single releases) regarding being underpaid. Where that lawsuit goes might help determine the future of paid digital music, whether purchase or streamed.
I understand I am in the minority of people who are streaming and also purchasing music. However, we are living in a world where EVERYTHING IS AVAILABLE RIGHT NOW! And in a culture of instant gratification, I feel artists like Taylor Swift are shortchanging themselves, and overestimating their value. Taylor is one of the few artists selling millions of albums in the US, a category populated by Adele, Justin Timberlake, Beyoncé, Rihanna, Eminem, and a select few others. Even though that’s the case, I am not going to blind buy 1989 just because I don’t have legal access to the album through a streaming service.
Currently, Taylor Swift and others have become co-owners of a new streaming venture called Tidal. Tidal is the brainchild of Jay-Z, and the concept is that it’s owned by the artists, which means they have more control over the service and, most importantly, better monetization of their work. It’s all great in theory. They have quite the uphill battle ahead of them, though, when it comes to claiming market share.
On paper, Tidal is a great idea. A service for the artists created by the artists, allowing the user an experience they can stand behind. While there is no free tier, you can access Tidal at 320kbps for $9.99 unlimited streaming, or you can opt for the $19.99 service that provides unlimited lossless streaming.
Spotify currently has roughly 60 million active users, and now boasts more than 15 million paid members. This is a huge install base to try and crack. Add in that Spotify is available on nearly every smartphone, can be found on TVs, on the PS3 and PS4, among many other devices, I feel that this new service has quite the uphill battle. It’s unclear if artists such as Beyoncé and Madonna plan on pulling their catalogs so they are exclusive to Tidal, but exclusives are already being added – Rihanna added a song called “American Oxygen,” while Madonna is giving Tidal the exclusive debut of the “Ghosttown” video.
Will making their catalogs exclusive to Tidal be financially beneficial to the artists? Since Spotify has a big install base, that’s a big audience to not have legal access to your music. Sure, Tidal could easily explode and leave Spotify in the dust, but that’s long term. If Tidal takes a while to take off, these artists could look at a lot of short term losses until market share catches up. For Madonna, whose latest album, Rebel Heart, didn’t perform too great thanks to it being available illegally 3 months prior to release, you’d think she would like to retain maximum exposure. Since they haven’t stated their intentions, I’m not sure what the future holds quite yet.
Streaming has definitely changed the tide of the music industry. It has added further immediacy to new single and album releases, and people enjoy having an easy to use service that provides them with access to their favorite songs and artists. While this may mean less revenue because they aren’t seeing the immediate revenue from an album or single sale, it’s creating exposure for the songs, which can creep up popularity charts and become more visible to the casual listener. Lord knows I have listened to albums I otherwise never would have considered because I didn’t care to pay for them, nor take the time to try and find it some other way. The future of music is changing – it will be interesting to see where everything lands once Tidal is off the ground.