You’re in the music business because you love music, right? But you still have to eat. So where’s the money in music going to come from? Streaming is the new paradigm in music – it’s how the business works whether you like it or not.
It doesn’t matter whether you subscribe to Spotify or Apple Music, but you’re probably streaming a lot of music already on YouTube. Yup… that’s streaming.
When’s the last time you downloaded an MP3 or purchased something from iTunes? If you have recently, then you probably still think Facebook is so cool.
So now the question becomes, how do we monetize streaming so that everyone get’s paid fairly? Especially when the entire music industry is used to selling plastic discs for $20 and getting hella rich?
Right now Spotify premium costs $10/month and Apple Music will cost $15/month after your free trials. On HypeBot, Hugh McIntryre asks whether even that little bit of money is too much to pay for unlimited streaming.
Here’s a little piece from the article:
The IFPI (International Federation of the Phonographic Industry) reports that at the height of the music business in 1999, the average music-buying person in the world spent around $64 on recorded music per year. Re/code points out that the $64 figure is only taking into account those who actually bought music. When adding in the millions of adults who never contributed a dime to the industry, that figure goes down to a surprising $28 per person.
That $64 figure was at a time when people had to spend a premium to get the music they wanted. There was no iTunes, and even singles could cost several dollars. If a person was a fan of a certain artist, they were much more likely to rush out and purchase the album before the creation of digital downloads and online piracy. Now that we’ve gone to the end of the spectrum where songs were $0.99 and nobody needed to purchase an album, it’s tough to convince many to fork over $120 a year—twice what they were paying just a decade and a half ago.
So, right now we’re paying more than ever for music individually (if, of course, you pay anything at all). What do you think? Does streaming cost too much money right now?
What would you be willing to pay each month to get unlimited access to all the music in the world?