Spotify Saved the Music Industry (But Not Necessarily Musicians)
freakonomics.com
freakonomics.com
Nothing will ever stop people from making music, and 99% of working musicians are making a meager living doing what they enjoy, just like always.
Nothing to do with copyright.. more people were breaking copyright during this period. In fact the people who broke copyright spent the most on music. Everyone broke copyright by recording songs from the radio. The first mass market recording devices were everywhere.
The funny thing is how true this statement is, and yet how often it's deployed as if that means nobody needs to further consider or negotiate the present economics.
How would one establish the idea that average person wasn't willing to spend money on music before the 20th century? Because I'd expect as long as there's been instruments and money, there's been some form of economic participation.
But let's say it's true -- does that really direct a normative discussion on current economics? Because a hell of a lot of things about human society after industrialization have only been true for a brief time in human history, and that's no clear indicator of whether or not they have value.
Here's a better standard: how well does what we're doing support people who are in a position to make musical contributions that people value?
Recording sales fared pretty well by that standard, although there was the problem of predatory middlemen. Streaming revenues seem to have the same problem, and don't fare anywhere near as well.
And as I understand it, even before the recording era, there were predatory middlemen exploiting the sheet music composers.
You dare not whistle a tune before it had been published, lest someone steal it.
Back then, musicians fed themselves using a system of funds that has popped back up again now that selling records isn't economically realistic anymore: patronage.
Back then, musicians were patronized by monarchs, feudal lords, aristocrats, churches and schools. Nowadays it's media conglomerates, bourgeois philanthropists, and patreon users.
Actually they did, certainly in the 19th century which was the era of the concert hall. Without recording technology, music had to be performed to be enjoyed. The market for live performances was much, much bigger. Because the market lacked the 'winner-take-all' aspect of today, the opportunity to make a living wage as a musician was easier than today.
Even Beethoven, superstar of his time, couldn't make a living on his own, he was reliant on Archduke Rudolph, Prince Kinsky, and Prince Lezkowitz to keep food on his table.
This is the best possible time to support an artist you enjoy. You can buy physical and digital copies of any artist in the world, artists can set up Patreon accounts, and you with a small amount of ingenuity can probably even mail your favorite artists a check directly.
The issue is that people don't do this, because they don't value the music enough to do it. It is not a great argument to say that Apple Music is mistreating artists, the fans are mistreating artists.
As a final point, the way most popular (not just pop) artists get popular is through marketing, advertising, venue promotion, radio deals, etc. The record company probably deserves the majority of the money produced by such enterprises because without their intervention no one would be that famous to begin with. Kanye West is a brand, just like Ford and Dockers.
I feel like once a musician is established, the label should have to justify their ongoing role in that musician's career, and certainly in the past lots of musicians have switched labels or started their own small labels later on in their career.
> The issue is that people don't do this
People did do this. From the time legit outlets like iTunes appeared to up through around 2013, revenue from digital recording sales rose into the billions, on the road to matching 90s CD sales. But then they fell dramatically over the last 5 years, and we shouldn't talk about this as if it's a law of the internet or there's a big mystery why. Streaming services offered on-demand listening of huge catalogs for a fraction of the price. Consequently, the demand for purchased recordings dropped, and artists get paid a fraction of a fraction.
Patronage is nice, I'm glad the option exists, it's one of the rays of light.
Still it lacks one of the virtues of retailed recordings: you know how much you're supposed to pay to make a meaningful economic contribution. Do you want to listen to this song again and again? Great, pay an asking price for a single or album, you have done your part. Or decide it's not that important and listen to it when it comes up on transient music services like terrestrial radio or shuffle-streaming. Or decide it's kindof important and pirate but you know in the back of your head you haven't really meaningfully participated yet and you'll need to decide to one day (which is another thing services like Spotify work against -- they grant an imprimatur of legitimacy which erases that sense in the back of your head that you might owe something).
I can assure you that people were spending plenty on going to operas in the 19th century, for instance. And in the 18th century. And of course world-class orchestras have been making money for a few centuries, as well.
The thread is about professionals; those making money from music. Mr. Bach and Mr. Handel weren't farming all day, I can assure you.
This is not true. People have paid for music for centuries. Before it was recorded on discs, tapes, wires, or cylinders, people bought and sold sheet music. It was a massive industry.
Before everyone had an electronic music player there were pianos in almost every middle-class home. Pianos were a huge industry with some cities having a half-dozen local manufacturers.
And before pianos became mass-market, people bought sheet music to... get this... sing! People would get together in each other's houses to sing. Companies had bands and choirs, and would compete against each other.
Spending money on music is not something new.
A friend of mine once had a conversation with the drummer of a nationally known band. The drummer was an ordinary looking fellow, who said he was a "high school loser never made it with a lady" type. After the band became known, he looked up and hooked up with every woman who'd rejected him in high school, including the married ones.
Hip hop is huge on Spotify, where it struggled for radio play and sales before because commercial radio is so conservative (in the sense of risk-averse). Then there's the whole Billie Eilish thing: huge on Spotify, almost no radio play at all.
On the other hand, there are Billboard 100 artists who are more or less absent from the streaming landscape. Some sell lots of albums but aren't on the streaming charts at all.
It's probably not as simple as saying that streaming is only good for established artists, but bad for the long tail. For some of the previous long tail, it's been very good. And for some of the oldies, it's been phenomenal - Spotify enables them to monetize their back catalogue with near zero promotion or distribution costs, year round.
What? See how many rap albums are in this list [1].
1: https://www.billboard.com/archive/charts/2000/top-album-sale...
Scheduling Eminem for radio play while he is arguably the biggest artist on the planet is not really going out on a limb.
> Scheduling Eminem for radio play while he is arguably the biggest artist on the planet is not really going out on a limb.
I mean, you can't be the biggest artist on the planet without some level of main-stream support in the first place.
To say that hip-hop became more popular due to streaming is just obviously nonsense.
> According to the report, R&B and hip-hop are now responsible for 25.1% of all music consumption in the U.S., while rock claims 23%.
> Looking at the rest of the numbers listed that dissect how people are consuming these styles of music, it’s clear that streaming is to thank for the swap in ranking. Rock is far and away the winner when it comes to album sales—the genre claims 40% of all album sales in the country—but the total number of records actually purchased dwindles every year, so while that percentage may remain steady or even climb, it’s not representative of how Americans are truly consuming music. [1]
[1] https://www.forbes.com/sites/hughmcintyre/2017/07/17/hip-hop...
[2] http://www.insideradio.com/free/in-a-streaming-world-it-s-r-...
Rap popularity was steadily increasing before streaming, you can't credit streaming for it's popularity.
Sale of rap and even “gangsta rap” has been dominated by White people for two decades.
Where Spotify comes into play is granting exposure to artists who are still trying to make it, or whom mainstream radio won't play. But that's cross-genre and diesn't affect the mainstream viability of hip-hop itself.
Before: 2 listens = dealer price of a CD in UK = about £7.5 (on a good UK indie that's split 50/50 with the artist).
Now: 2 listens = income from 2 streams on Spotify = about £0.0006
I'm thinking of artists like Autechre.
Spotify is starting the shape the sort of music that artists can be successful with, in a bad way.
An artist does not get paid after the first payment from the label from the sale of a CD. If you play the CD on repeat, the artist does not benefit, nor does the label.
/Labels/ get paid for every single listen on Spotify.
There is also Spotify Direct, too, and the artist can directly benefit more than if they went with a label.
Early platform like Lala (bought by Apple) had a cool model – $0.10 per song, but you can only stream it. Ownership was still there, and artists were paid equally per sale.
Nevertheless, getting your music distributed is easier today than ever, and I'm sure all artists are grateful for that.
Are you saying big acts get more per stream?
Also, I'd love to hear what you think about how the incentives from Spotify et al are changing music itself. From what I understand, a play isn't registered until a certain portion of the song has been played. This hurts songs that have a slow build and so hooks are being pushed right up front. Do you think it's homogenizing music to any degree?
The big acts may get more per stream because of 2 factors:
1) the Spotify allocation algorithm of subscription payments works top-down from the most popular artists' percentage of total streams instead of bottom-up from individuals' play logs. (The top comment of a previous HN thread discusses this.[1])
2) Some record labels have (had?) negotiated sweetheart deals with Spotify for different revenue share and stream payouts. So a Universal/Sony/Warner major label with a roster of desirable artists that Spotify wanted may get slightly more per stream than an unknown indie label with no leverage.
That reminds me of something else I've been thinking about. The labels all have substantial equity stakes in Spotify. It feels like that could be a massive conflict of interest or maybe a collusion problem. Why should the labels push for higher streaming fees when that could hurt Spotify's stock price which would hurt the label's own balance sheets?
But.... what has changed is the frequency in which artists need to release content in order to compete in the algorithm arena. Some artists understand this, and more singles, EPs and early album previews allow for more "touch points" with their audiences throughout the year.
So, the album is dying? Could something like Pink Floyd's The Wall be released today? It's a two CD package with gapless songs.
But yea, you can still do a concept album like The Wall or Sgt. Pepper's. Kids doing drugs and laying around listing to weird noises for an hour+ is still a thing these days.
It's not about the physical delivery format, but about the social rituals around it and the impact they make.
Streaming cheapens and commodifies music and turns culture into wallpaper. Likewise subscription video on Netflix, etc, which seems to have become a home for trashy potboilers about zombies, vampires, superheroes, and soapy post-apocalyptic dramas. Likewise Amazon's all-you-can-binge-on KDP for fiction readers.
Culture has always had the potential to be an event. In the past, the arrival of a stand-out movie, album, or novel literally left a generational imprint.
It's hard to imagine Spotify, Netflix, Apple, or Amazon, creating an environment in which that's possible. There will be products that have millions, maybe billions of fans, but there won't be many creative projects that keep the interest of those fans for more than a month or so, and even fewer - probably none at all, in fact - that will continue to have cultural power decades after their release.
Compared to the 50ies, 70ies or even the 90ies, several things have changed significantly: How many hours of the week that people listen to their own music has increased tremendously. The number of artists and genres that people listen to over a year increased massively. How long an average song is in "the rotation" has decreased massively.
And any idea that services like Spotify were just the only way forward to revenue is one that thoroughly ignores the growth of digital recording sales that took place independent of it (not to mention what they may well have been like if it'd never happened).
Buffet streaming services marry the worst of piracy and the old-school middleman capture. They give the illusory impression that you're actually rewarding value.
You have an interesting perspective... as a consumer for me Spotify marries the best of those two worlds. I get the music I want and discoverability, quality, and ease of use is extremely good.
And it turns out that can be true even while the economics of buffet streaming services simultaneously effect the drastic cuts in first-order revenue that piracy brought directing it instead to distributor and label.
I gladly pay HBO and Netflix as well, but it seems no matter what I pay, I cant get the same movie/series coverage that Spotify provides for music.
Video is, of course, much more fragmented but it's also different in that you're not going to rewatch most video content. There never were music rental stores (although libraries did/do have music) but video rentals were a thing pre-streaming.
For example see Pusheen the cat. Started off as a tumblr web comic/character and now generates millions in merchandising revenue:
https://www.ndtv.com/world-news/how-an-internet-cat-craze-be...
I'd agree on YouTube however, artists I work with see very little income from YouTube, which is quite sickening and problematic for artists given how much of the younger demographic use YouTube as a primary source of music.
Which would be cool, if Spotify wasn't meant to be a replacement for a revenue channel.
That was hardly "dead." There's this narrative that goes around "oh, yeah, the internet happened, copies are cheap, no one was ever going to buy music again" ... and it's not true.
The truth is that there was a thriving digital recording sales growing up to take the place of physical recording sales. And buffet streaming kneecaped it.
As someone once said about another triumph of capitalism: when you value McDonalds, you get McJobs.
Possibly McMusic, as well.
People listened to ad-supported radio or they listened to records socially or borrowed them. That’s how it worked for about 80 years.
I’m not defending the music industry, its practices, or its stalwart backwardness. But suggesting music was inaccessible is plainly false.
I remember the days of ripping CDs borrowed from friends on a 4x speed drive; back then, you could do 8x but there was a risk of file corruption/recording failure.
Why does no one, literally no one ask: where the hell does that money disappear? Everyone is busy writing 20,000-word essays on how streaming is bad for artists. Maybe, just maybe, it's not streaming that's bad but the labels and their agreements with both the artists and the streaming services?
People think technology just develops itself huh?
Think about what the distribution landscape for musicians used to be like in the past.
You can literally put up your entire music catalog at almost no effort and and generate enough popularity to support your act through live plays. Live shows have always been the main source of revenue for artists.
People saying that the situation for artists is bleak have no idea of what they're talking about. It has never in history been easier to start a music act and get followers from all around the world. It has never been easier to concentrate fans of every possible little genre into their own communities.
What most people don't realize is that the live act scene has exploded all over the world. There a literally thousands of live music festivals going on every summer that just weren't there 20 years ago. Modern festival culture is fueled by streaming media, Soundcloud, BandCamp and Youtube.
I follow scenes where an artist's greatest hit gets 20k plays on YouTube and 500 physical vinyl copies. That's literally enough to make a living and tour around a little on your free weekends. How possible do you think that was before Youtube?
Though obligatory fuck Beatport, they only give you 24 hours to download what you buy and then the only way to download again is to rebuy, or beg. Even a FLAC is only ~30MB, there's no need to be this cheap.
If you want some good coding music for the day I'd suggest starting with https://wanderband.bandcamp.com/
And not to forget that I can often choose my own price (when I was a student I sometimes paid less, nowadays I usually pay a bit more)
Some other stores that you can find DRM-free FLAC in:
* https://www.junodownload.com
The unique true service that can centralise everything is still Kodi + plugins
(Why is this being downvoted?) It is on topic and is not at all hostile.
And without the top performers subsidizing the salaries of everyone else, the whole thing falls apart.
Right now you have fake writing and producing credits simply designed to generate a stream of income for the musician. I think going to a salary would allow people who are best at writing or production or something other than singing being able to focus and it brings the cost to produce a record down.
You may or may not be able to make more money independently. You never know when the public is going to move on to some other sounds and you never know the perks that are lost as a result. The top of the top performers probably could swing the independence but for many it may not be the way to go. The bottom line is that for the vast majority of musicians a salary system could be better to work under.
I think everything should be on the table as it relates to how the music business is run and that's what the Spotify CEO said he was interested in. He's just doing from one side instead of both sides of the equation. That's why the vast majority artists and content creators are on the losing end of Streaming.
I don't think Spotify has any kind of special algorithmic sauce, they just make it easy for people create and share playlists.
It amazes me how most of the other streaming services try to turn everything into an algorithm, via "special radio" stations, etc. And yet, the best way to provide a long tail for music still seems to be basic web 2.0 - let the people make the content for you.
I had been switching between Apple Music, Spotify and Google Music in different countries. Currently I have settled on Google Music simply because Google practically abandoned Google Music so they are not so in my face with curated playlists and stations.
On the other hand I think that there is opportunity for good (like in really working) AI engine for music recommendations.
I had been clicking 'I don't like it' buttons hoping the AI will get it but no luck. So after 30 days I had enough and moved on back to Spotify.
So much for human feedback.
(Just kidding, but this kind of thing will be more common in the future, especially as we learn more about how little the brain knows about its own desires and motivations)
If the algo scripted a TV sitcom, it would be 5-6 mostly white people who occasionally hook up, break up, get married, struggle to conceive, and then everything eventually works out.
Same goes for music. People have a habit of liking what's in front of them. Few are going to want to make the effort to find something that's more than "good enough".
For a solid year, any time I played a Daily Mix or let one of my personal playlists runout and it reverted to "recommended music", Neko Case was always in the first top 3 songs. Before that it was Iron and Wine. I don't mind either artist, but I have never chosen to play either one myself.
I do like Spotify's curated playlists though. They are always a better source of new music than the automatic playlists.
The main benefit of Spotify is that I can just bypass the algorithms, and go straight to people. And that's really where the "long tail" effect seems to thrive.
My sense is that is probably as good as it tends to get, unless you want to get incredibly creepy and start bringing outside personal information, e.g., associating that the 40-something living in Chicago may have an affinity towards Wilco. Personally, I'd rather deal with "meh" suggestions then have my music service track detailed demographic models of me.
I think they do that because it's the only way to keep people from switching to rival platforms. Spotify's selection isn't that different from Google Play Music/Apple Music/Amazon Prime Music etc. There's also little in the way of community interaction on those platforms beyond "sharing playlists".
SoundCloud at least has a system where you can comment on specific parts of a song. It creates a really interesting visualization of which parts of a single song people enjoyed the most.
Except for instant access to what is probably the biggest collection of music in the world. I don’t mean to be snarky but, have you ever used Spotify? It’s a godsend.
A collection of 14 million songs doesn't sound like "nothing at all"