Spotify and Apple Music, better for the indies than for Taylor Swift or Justin Bieber
Streaming music streaming services such as Spotify and Apple Music revitalize an industry that was dying because nobody was buying CDs anymore. In addition, those who are benefiting most from this new form of consumption are not the big ones, but the smaller ones: the independent firms or “indies”.
Merlin, a conglomerate of the most successful indies in the world, has distributed 353 million dollars in benefits to its members in the last year. It is 52% more than the previous year thanks to the rebound in revenues derived from streaming services.
Thanks to the monthly payment made by subscribers to services, indie firms can bypass the great physical distribution barriers and approach the musical triumvirate (Vivendi, Universal and Sony).
Borders also break down, and small local groups can find a global audience: 42% of Merlin firms generated more than half of their digital income outside of their home countries.
For years, for the indies it has been impossible to sell their recordings outside of their markets, since they lack the necessary infrastructure. The big labels, on the other hand, have offices and distribution agreements around the world. For 67%, digital revenues are their main business, including the sale of CDs.
The stamps, the established, did not celebrate the arrival and boom of streaming services. It’s normal, his industry was already sufficiently threatened, and listening for free through Spotify advertising was like a big enemy. Years later, these services are the main weapons to raise an industry that was falling. Even now it is sold in countries such as China or Mexico, which were practically dead markets. According to Nielsen Music, “streaming” surpassed the digital sale of songs and albums in 2016 in the United States for the first time in history. It grew 76%.
For the most successful artists, streaming services have not been as welcome. Especially for the possibility of listening for free in exchange for advertising (Spotify) or the trial period of 3 months of Apple Music. Taylor Swift, the highest paid soloist in the world, withdrew her works from Spotify and Apple Music, alleging that these platforms did not pay that corresponded to record companies or musicians. “The musicians’ work is being devalued by offering their works for free,” he said.
With money in between and an agreement to be the public image of the service, Swift returned to Apple Music. The contract was renegotiated. advantages of being the new “queen of pop”. Now also returns to Spotify, Pandora, Tidal, etc. “to celebrate the 10 million albums sold in 1989 and the 100 million singles. ”
While the indies celebrate the opening doors of Spotify and Apple Music, the superstars are still struggling to impose their conditions.