Is Music Streaming The Future?

Music Streaming


The internet has completely exploded in the past 5 years with over 3,342,577,800 people using the internet and that number is only increasing by about 6 people every second.

That’s a ton of people. But the next question is with all these people, is Music Streaming The Future?

Is Music Streaming The Future For Music & Artists?

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Digital Music News predicts in the chart below that by 2019 Apple iTunes song downloads will be basically killed off entirely, making so little from song downloads that it will be more of a headache to keep it alive than to cancel it.

Why Music Streaming Is The Future

That’s also a ton of people who might stream, buy or listen to your music on Youtube, Mixcloud, EDM RANKS, or any other various networks online today.

Today there are billions of people using the internet today and there are many different types of music streaming websites, social media websites, and other niche websites, making competition at an all time high.

Whether you have sold a few songs, or thousands of songs, this quick music marketing guide will help you figure out a lot of things you cannot learn from online courses or school.

Do you know the year when streaming will dominate the entire world and music industry? The short answer, is year 2020 or 2021.

Give or take a year.

We are writing this article to let you know that music streaming is the future, and to make sure your music is on as many music streaming platforms as possible worldwide.

One Billion People Will Be Paying For Music By 2021, according to Digital Music News. Youtube is a music streaming platform, but even YouTube isnt the future for artists, or music.

“If he were alive, Jobs would have killed it,”


One source bluntly stated to Digital Music News (and he’s probably right). One could say this all started with the Digital Music News article on Apple killing iTunes and song downloads.

But Apple deciding to delete the iTunes music download store is not the most important thing. Because Apple is already starting to get rid of song downloads.  This phase-out of music downloads is already happening.

Streaming has recently been known for primarily paying about a penny a play to artists, or even worse less than a penny per stream.

But things are about to change.

How can music streaming be the future if the payout rate for streaming is terribly low?

Well, the short answer is because the music industry in right in the middle of the switch from song downloads to music streaming.


Spotify Pays Out $3 Billion Dollars In Royalties In 2015

Spotify says that they have succeeded in growing revenues for artists and record labels in every country they operate in by paying out more than $3 Billion USD in music streaming royalties to date.

This official Spotify web page explains more details on how streaming migrates listeners away from music piracy, and allows music listeners to generate royalties for musicians, artists and record labels.

Guess which music streaming service Is Planning a $600 Million IPO?

According to a report by the Wall Street Journal, a China-based streaming service backed by Tencent Holdings Ltd, plans an IPO in the U.S. Goldman Sachs Group Inc. and Morgan Stanley have reportedly been hired by China Music Corp for the IPO, which will most likely occur by the end of 2016.

China has a growing music market and competition on the online music market front is intensifying. There are 650 million people online – the majority of which are smartphone users who listen to music via mobile apps.

Why Is Music Streaming The Future?

Because it’s the only way the major record labels can control music pirating and illegal downloads. This isnt necessarily a bad thing, as music streaming will bring back the recent explosive album and song sales that made many artists in the 60s, 70s, 80s, and early 90s millions of dollars. Think about it, the past 25 years or so the entire music industry has been loosing billions to music piracy from song downloads. All it takes is one person to buy a song for 99 cents and leaking it onto the internet for million to download for free, thus the artists gets no compensation as there is no way to control who plays that song and how many times.

Enters Music Streaming.

Music streaming now provides a platform for songs to be heard at home on a desktop computer, or on the go, songs can now be tracked with many statistics such as plays and much more. The more statistics and buzz your song creates, the bigger the payout for you in music streaming royalties essentially.

Facebook is already testing and partnering with Warner Music on a new feature called Slideshow that lets users add a soundtrack to their photos and videos, with popular songs. Facebook confirmed to Digital Trends that Slideshow is being tested in Australia this week.

And Warner Music Group’s reliance on streaming revenue reaches a tipping point, reporting that The company’s total revenue grew by 10 percent during the three-month period, and streaming’s impact could be seen in a digital revenue increase of 21.2 percent. Growth on the digital revenue side helped offset the declines for the company on the physical revenue side.


“We are now the first major music company to report that streaming is the largest source of revenue in our recorded music business, surpassing our revenue from physical formats,”


Said CEO of Warner Music Stephen Cooper, in a press release.


The total volume of on-demand music streams, which include both video and audio streams such as those from Spotify, Apple Music, and Pandora, among others, increased 93 percent in the United States in 2015, according to recently released data from Nielsen Music.

Total music streams rose from 164 billion in 2014 to 317 billion in 2015. There were six songs to surpass 400 million on-demand streams last year, compared to none the year before, when the most-streamed song of 2014, Katy Perry’s Dark Horse, only racked up 268 million plays.

Conclusion: Streaming at the moment may not pay out a lot for artists but it will soon, and when it does it will also allow artists to receive a more fair compensation compared to the past days of illegal MP3’s scattered all around the internet being listened to for free unlimited amounts of time with no compensation to the original creator. As music streaming becomes more and more popular, with more and more money to be made the longer music streaming matures, major artists will likely be more financially incentivized to opt-in rather that out of music streaming services, and with near triple-digit growth in recent music streaming growth, music streaming is only becoming more of a force to be reckoned with.

Digital Music News

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