Maximizing music revenue in the streaming era
Streaming platforms have reshaped how people consume music by providing on-demand services across various devices. As a result, widespread adoption has meant catering to diverse preferences and offering convenient access to an array of audio content. Understanding and leveraging this trend to maximize revenue is crucial for you as a music industry executive to stay competitive.
Through strategic investment and innovation, record companies have fostered an unprecedented global interconnectedness in the music industry. To flourish, you must safeguard artists’ value, contributions and rightful returns. This challenge intensifies as investors and private equity firms seek gains from music creation.
A perfect storm
The global music streaming market is booming, thanks to a perfect storm of factors, including:
- Key market players forge strategic partnerships, mergers and acquisitions
- Expanding internet accessibility
- Smart devices seamlessly integrate music streaming, providing ease and convenience
- Cutting-edge technologies, including 5G, AI, machine learning and virtual reality
- Increased consumer disposable income
- Music streaming apps permeate cafes, gyms, pubs, restaurants and stores
- Consumers aged 18-40 flock to music streaming services
Overcome challenges to optimize your streams
When it comes to driving streaming revenue, you face 3 key challenges:
- Notoriety – With all the competing music, your music creators must stand apart from the crowd.
- Analytics – It’s essential to see on which streaming platforms your company’s revenue is most effectively being spent so you can report back to the label and your music creators.
- Streaming optimization – Similar to optimizing keywords for search engines, you must learn how to enhance streaming service search parameters to best place your music.
It pays to develop talent
As a record label or music publisher, you must further develop your artists and songwriters by investing in their efforts to create the best music product.
For example, you can provide a higher budget for hiring more sought-after music producers. Name recognition on streaming titles can help drive revenue by opening up new avenues to those consumers unfamiliar with artists.
Marching to the beat of a data-driven drum
The ability to analyze key metrics such as revenue from sales, territories where music is played, and popularity of particular music is invaluable to the growth of your music business. With the volume of information available from many sources, you need a solution capable of importing, storing and processing this data.
While AI most likely can’t replace all human jobs required for the commercial growth of your business, the technology is an excellent asset for those using it correctly to assist in their endeavors to increase revenue from music markets.