Music sharing sites
MUSIC SHARING SITES
With the effect of music sharing sites such as Napster at the turn of the millennium, Justin Alexander is ready for the recent industry innovations. The rise of music sharing sites had a major effect and record sales fell drastically. Recent industry innovations have severely impacted the entertainment business which further brought about large scale advancements. Each year, music industry innovations makes leaps and bounds, and each advancement has had an effect on the overall business. The Internet can now be seen as helping musicians in multiple ways. This holds true for streaming websites and applications in particular.
With social media have an enormous influence in our daily lives, the music industry has had to maintain links to it with music sharing sites. Almost every good streaming website and software has the option to share your music with your friends on multiple social media platforms. This has led to an increase in awareness of different musicians and genres as people share their comments and views about such with the world. Some of the most widely used music streaming and downloading companies, such as Apple Music and Spotify, have integrated this into their software. They have options where the app will play music based on your mood, the day, your preferences, your habits, your tastes, and so on. This raises awareness about different artists, especially when shared with friends and family. This raised awareness can strongly influence an artist’s sales and revenues, and change the future of a musician.
2. Data Analytics
Artists can use the data obtained from these streaming sites to further increase their revenues in multiple ways. They can use it to plan out their live appearances, concert dates and venues more effectively. This ensure that they have larger shows where they have more of a fan following, which in turn will generate them more revenue. By playing for more sell out crowds and engaging with their fans on a more personal level, they increase their returns on investment in touring.
One of the most contentious issues on streaming issues is the revenues obtained from such. Most of the best-known streaming websites give their subscribers free access, for the most part. For example, of Spotify’s 100 million users, only 30 million have paid subscriptions. Since they’re only making revenue from a small percentage of their subscribers, profits aren’t very large. Furthermore, most streaming sites have monthly subscription charges for those users who want an add-free experience. However, the more times a song is played, the more the company owes in revenues to the artist.
As such, artists only receive what they see as meager income on songs that are played by millions of users, most often for free. However, companies, like Spotify, claim that despite what artist’s see as unfair compensation, the amount paid still makes up almost 70% of the company’s revenues.
The music industry’s entanglement with digital technology started with the birth of sharing and pirating websites and softwares. Although some say the situation is no longer as dire, the industry is even more intertwined with technology. Which will have an even bigger impact by the rise in online streaming services.