My buddy creates music. Contributing some of the lyrics to a couple of his songs has been an interesting, enjoyable experience. This post is not about those songs. This post is about what I learned about how the music industry works.
Let’s start with the reality of the music world nowadays. Most music is no longer purchased. Music is now mostly streamed. Artists get paid by the number of streams a song gets, not so much by the number of units sold.
Linda has our old Apple iPod currently set up in the dining room. FYI: IPads were discontinued like ten years ago. On that iPad is music she purchased between fifteen and twenty years ago. Linda owns that music and owning that music means a lot to her. It gives her joy to listen to her music.
In our basement are two plastic bins full of a couple hundred music CDs (Compact Disc). I purchased most of those CDs. Classic rock from back in the day. Although some of the CDs are more of the singer songwriter music that Linda is into. I have not played those CDs for a couple of years. I have a CD player on a shelf in the basement but it is not hooked up to a sound system any longer.
We, Linda and I, often go to art fairs and community festivals. Part of our CD collection includes CDs bought from groups playing at these events. Our motto has been if you enjoy art you need to purchase some art to support the artists.
All but gone are the days of buying music. Like most people, nowadays, we stream most of the music we listen to. On our phones, iPads, smart speakers, television, car entertainment center, and our Mac Computer we can listen to virtually any song at any time. We no longer buy music as such, nowadays we just ask our devices to play whatever music we want played.
Streaming music is inherently different than owning music. Yes, either way you can listen to the music. Either way the music is good. However, when streaming music, there is no sense of owning the music. With records, tapes, CD’s there is a sense that you own the music. With streaming you can still love music and play it over and over again. But you don’t own the music, you can’t collect the music, it’s different. .
Looking it up, about a third of music listening is done with audio streaming services like Spotify, Amazon Music, Apple Music, etc. Another third is done with video streaming like YouTube, TikTok, Instagram, etc. About 15 percent is on radio, including both broadcast and internet. Less than 10 percent of music purchased on albums, CDs, etc.
From the artist’s point of view, streaming music changes the game. You no longer need a record deal to put out music. Music can be created in your bedroom and for a small cost the songs can be distributed to all of the music streaming services without having managers, producers etc.
FYI: Artists can’t just put music directly on a streaming service. The streaming services all require artists to go through a distribution company and that company puts the music on the streaming services.
TuneCore is the biggest music distributor but there are several other options. Distribution companies charge less than a hundred dollars a year to put an artist’s music on all of the streaming services. A couple distributors are free up front but they take a cut of any royalties and offer fewer services.
Distributors make sure the music meets the standards, and check the music doesn’t break copyrights and decency standards. Obscenity is allowed but the music needs to be labeled as containing obscenities. There is more to it but you get the idea.
There are some downsides to streaming music. Unless they have many hundreds of millions of listens, musicians don’t make lots of money from streaming their music. On Spotify, If an artist gets 500,000 streams, they will earn about $2,000. When you hear an artist has a million streams, it does not mean they are rich.
On Spotify alone, Taylor Swift has thirteen songs each with over a billion streams. She probably has similar numbers of streams on the other streaming services. A billion is a thousand millions. There are currently only 826 artists who have gotten a billion streams on Spotify.
The big music streaming services are Spotify, Amazon Music, Apple Music, YouTube Music and the list is long. Prices vary but they are generally between $10 and $18 per month. I checked out Spotify, Amazon Music, Apple Music and they each have over 100 million songs available to stream and they add thousands more each month. Pretty much no matter what your taste in music is, that music is available on the music streaming services.
With that many options available to the listeners, it is very hard for any one artist to get enough streams to get rich. The artists with the most listens are good musicians for sure, however they are also very good at social media. It is not enough to get one person to listen to a song once. To really make a go at it, they need millions of people to listen to their music many, many times.
So that is the current state of the music industry. Music listening is way up. With the popularity of earbuds and headphones, and the ability to stream from your phone, workers all over the world now listen to music while they work. On average people now listen to music over 20 hours a week.
So just in case you were wondering about the music Duane creates on which I contributed some of the lyrics, here is a list including the YouTube link to the songs that got published.
Old cars, dogs and babies https://www.youtube.com/watch?v=5F5nDWTryKo
The Desert Wins https://www.youtube.com/watch?v=GKvQ2WK0sRc
You’re in my heart https://www.youtube.com/watch?v=UAX3T0dkWyk
Alone https://www.youtube.com/watch?v=EAU9uj3GmjE
Old West Town https://www.youtube.com/watch?v=YySev79odJg
More to love than love https://www.youtube.com/watch?v=IIb5PqAK1us
Dollar Store https://www.youtube.com/watch?v=mwmDbAPdm-o
More to come.