The music industry grew 8.1 percent to $3.4 billion in the first half of 2016 and is on pace to expand for the second year straight.
From the revolution of 8 tracks, cassetts, albums, CD’s, mp3’s. There used to be a time when paying $15 for a CD was very common. Now you can pay $9.99-$14.99 for an all you can eat buffet type music plan or simply for free if you can tolerate the occasional commercials that pop up in between songs.
Music is more accessible now than ever in the history of the music industry. However, artists, writers & producers are being robbed.
The music streaming landscape is starting to look like a WWE fight! The tech giants are demanding a position in the $25.3 Billion dollar music industry with all kinds of start-ups seeking a niche to solve the underlying problems.
For the music industry, the last five years has proven that live shows are essential. Worldwide revenue from live music ticket sales hit $20.5 billion in 2014, and that number is expected to grow to $23.7 billion by 2019.
There’s no doubt about it — the volume’s only going to increase!
With more artist going or staying independent… It’s a new set of revenue streams and concepts which are rooted in digital, mobile, and experience-driven music industries.
Here are The 13 Most Significant Trends Predicted for the Music Industry in 2017!
1. The Shift From Record Labels To Independent Platforms Is Going To Remain.
The traditional record label way of doing things is an antiquated model. Traditional record labels direct all their marketing expenditures into their already money making artist as priority.
Fortunately the barriers to entry & exposure have been lowered. Major record labels aren’t likely to take a risk on cultivating new talent. New talent has begun taking charge of their own personal marketing & distribution through social media and music streaming platforms.
The super abundance of artist looking for a breakthrough on streaming platforms will over saturate the already limited market for the consumer’s attention.
According to medium.com “This will lead to new barriers to entry, giving streaming platforms an opportunity to capitalize on the opportunity to streamline exposure for certain artist.”
This is where streaming platforms will create a new model for musicians eager to be monetized and picked up.
This is where record labels dropped the ball when they no longer saw value in cultivating new artist.
2. Success= Content
Success in the music industry has less to do with being a Billboards chart top 10 and more to do with an artist ability to achieve success in the music industry by working smarter and more efficiently to create content that uniquely engages a fan base.
Artist such as Adele, Beyonce, Rhianna, Beiber, Drake to name a few, only represents one side of the paradigm of success.
There are artist who engage with an internet-based fan core. More artist are likely to think totally outside and just to the left or right maybe more centered, than ever before.
With so many unique ideas of engagement being created in the music industry opportunities for growth will be overflowing.
3. Free Music Is The Norm, Not The Exception.
According to Digital Music News study,” the idea of paying for music online may cease to exist as a reality in five year.” This may be the most difficult to accept concept in the music industry.
The idea that great music has lost its worth is beginning to grow antiqued, in so far as artists not occupying the top of the pop charts.
It’s all about thinking outside the box when considering your art as a musician. The music industry is about making music for profit.
It’s now far more about creating a relationship with your fans via free means and then cashing in on that connection via paid concerts, live events, commercial synching, licensing and sponsorship-as-artistic patronage (Patron of the Arts).
4. This Will Be The Year That Streaming Services Became Radio
With the consolidation of streaming services and purchases by traditional media companies…
Professor David Philp is Assistant Professor of Music Management & Popular Music Studies at William Paterson University says, “We’ll see the big streaming audio services, like Spotify, Apple Music, Amazon, and Pandora, get more into original content. “
Apple Music and Tidal are getting exclusives already. But what he’s talking about is creating original content for music, in other words signing and recording talent, and distributing that as a new release under the auspices of Spotify Recording Group.
Amazon and Netflix already do this with video content. With tens of millions of listeners, a captive audience, and with highly influential playlists this will become a norm. Because of the explosion of music streaming in 2016 there will be a million new label startups in 2017.
5. Music Will Be Released in More Unconventional Ways
There has been a big shift of the traditional album cycle. The idea of a full length album is being downgraded by some to be antiqued.
From Rihanna’s Anti to Beyonce’s Lemonade and all the way back to T.I.’s Us Or Else: Letter To The System… 2016 was all about the unexpected album drop.
As the influence of established record companies and their big pre-release marketing campaigns continues to crumble, over the next twelve months the unexpected album drop will diminish in comparison to the kind of deeply engaging methods re-shaping the very concept of what an album can be.
It’s a reversal back to pre-1970 music business which focused on singles. There are more artist shunning and fleeing the fake time limit or normal length for a release. Singles, Eps, mixtapes and double-albums are all in play. Things are speeding up and artist have a choice in their formats.
6. Artist Are Focused More On Touring And Other Ways To Make Money Other Than Streaming Music.
As of 2015 music streaming was at 3.66 Billion dollars. “The effects of streaming on live music sales is up 93%. Consumer spending for the last 4 years is down 50% for CD’s and digital downloads and up 66% for live music. 42% of fans discover music by streaming and 42% buy tickets to their shows,” according to Ben Kramer, Senior Field Operations Manager at Eventbrite.
The U.S. live music industry anticipated it will grow to 11.6 Billion by 2019, which means festivals everywhere all year around.
Artist and management will look to maximize touring, live shows and festival income, not just through traditional means, but through remote digital and streamed 360 VR (virtual reality) live shows.
The music industry will be actively seeking the highest adoption platforms for VR-360.
7. We Will See Continual Consolidation And Acquisitions In The Touring And Live Music Industries.
The music industry has adapted to seeing live concerts as the best way for artists to earn a sustainable living wage.
The way for artist to get paid is for these large gatherings where an overabundance of musicians can gather and corporations can sink marketing budgets into pushing products. With only three major labels left (Universal Music Group, Sony Music Entertainment and Warner Music Group), the popularity of corporate-driven festivals are set to increase.
Touring, live shows and Festivals are extremely profitable for not only mainstream artist but it gives up and coming artist more exposure. This is making the experience of seeing your favorite artist live, a fresh breath of new life in the live music experience.
Jerry “Wonda” Duplessis (15x Grammy nominee & 3x Grammy winning producer) advice is for the artist “to build yourself, get hot on the Internet, and go on tour. If you see any record labels offering to sign you, run in the other direction.”
*Check out Setmine– Allows artist to joint venture with retailers to lock their content that can only be unlocked when a fan physically visits a certain location.*
8. The Expansion Of Revenue Streams For Working Artist Has Arisen
Celebrity merch went mainstream in 2016. Notable arrivals included Beyoncé’s Ivy Park and the continued success of Kanye West’s Yeezy line.
Monetizing fan engagement (live or through social channels), mutually-beneficial brand partnerships, etc.
These have been growing auxiliary income streams that have become a major piece of musician’s income pies.
9. A New Music Format Is On The Rise And It Will Be A Bigger Shift Than Mp3 & Blue Ray.
Currently in the music industry, there is a strong push being made for a “Fair Trade Music Format” using what is called block chain, this will implement metadata and a cryptocurrency such as Bitcoin.
Metadata is the basic data that will identify writers, performers, owners, producers etc. of the music.
Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
The metadata ensures that there’s a database of music rights, ownerships, copyrights, and usage rights, it’s available for anyone to use. Anyone involved with a track can assign rights and usage in real time.
Cryptocurrency ensures fair payment for all involved with the track. Payments will be accurate and quick.
10. The Persistent Effort For Transparency In Digital Transactions.
There will be a continued effort to add transparency to digital transactions and streamline payments to rights holders through technology: using block chain, global databases, open-source/automated licensing platforms and eliminating middlemen.
Streaming payments and how they eventually make it to artist and rights holders is going to be a big issue within the music industry in 2017.
The importance of transparency in relation to streaming payments will continue to dominate the streaming discussion, as artist or labels see decreases in physical and download sales.
This will require a greater measure of effort and terms that both large and small players can agree upon. The interest of both sides must be accommodated with by proving increased revenue to all parties and/or through legislation.
11. A New Wave Of Innovation: Music + Virtual Reality + Augmented Reality Industries = Game Changer
Music execs might have been caught off guard by file-sharing and other technological innovations, but the resulting wounds have taught the industry a valuable defensive tactic: “Sleep with one eye open, lest it get blindsided by change yet again.”
Seeing your favorite artist who has passed away, live in 2017 will become a reality. We saw the beginning of this when 2 Pac took the stage at Coachella in 2012. This is the beginning of commercialization of Augmented Reality.
If virtual reality is going to be as explosive as the experts predict (ballooning to nearly $30 billion in revenue by 2020), the music industry will be ready.
12. Live Music Will Be More About Your Event’s Experience Than Its Lineup So Over Deliver Value
Social media expert Amy Jo Martin is penned for saying that value must always be delivered when, where, and how your audience wants it.
If you’re delivering value via music for free or next-to-nothing, when it comes to live performances, the idea then becomes, if someone is paying money for artistry, that over-delivery is now the only expectation.
Whether you are a covers band playing intimate venues or a pop diva finding a corporate sponsor, the over delivery in value is more important in music than ever before and this can be incorporated with the inclusion of other forms of art or culture
13. Security Issues Surrounding Venue And Artist/Band/Audience Safety
Orlando, Paris, and elsewhere in the world have led to the need for a discussion surrounding venue safety in regards to both the audience and artists.
Artists earn a significant amount of their income through touring. Venue safety is critical for the success of the artists and the touring industry as a whole.
There you have it: The 13 Most Significant Trends Predicted for the Music Industry 2017!
Trends for the future of the music industry, straight from the insiders themselves. The music business has been through a number of changes in the last fifteen years, and has often found itself at odds with emerging technology.
If it desires to survive until 2030, then, it will need to embrace new methods of sharing, creating, and selling music.
Now that we’ve covered the forces shaping the music industry this year, it’s time for artists, bands, musicians, producers, writers and rights owners to dive down into the trends that will shape their music careers specifically and partner with someone invested in their future.
In 2017, we will see the continued power of music. The next twelve months will be a period of growth and focus for the music industry. In 2017, we will see a growth and engagement with music fans in new and extraordinary levels. On measures that no one in the music industry has ever seen before and when you have a strategy to connect some of that energy, then you can do some amazing things.