Streaming platforms give us access to new music, so why are fewer people listening to it?
Summary
Research indicates a significant decline in new music sales and listening in Australia since the advent of music streaming, with new music revenue decreasing by 55% (71% inflation-adjusted) since 2000, a trend also observed in the United States. The shift to an access-based economy, driven by platforms like Spotify and their "pro-rata" remuneration model, has led to catalogue music dominating, causing new releases on ARIA charts to drop significantly (e.g., from 99% to 62% for singles). This situation creates a crisis for emerging artists, diminishes record labels' role in artist development, and has prompted calls for government cultural policy support. A proposed solution involves adjusting streaming models to value new releases higher than catalogue music, thereby creating a business incentive for investment in new talent and fostering the long-term health of the music sector.
Key takeaway
Streaming platforms have driven a significant decline in new music consumption and revenue in Australia, threatening emerging artists and independent labels. Since 2000, new music revenue has fallen 55% (71% inflation-adjusted), with new releases now comprising only 62% of top 100 singles and 28% of albums, down from 99% and 78%. This crisis, exacerbated by streaming's pro-rata remuneration model, necessitates policy intervention and a revised system that prioritizes new releases to ensure long-term industry health.
Topics
- Music Streaming
- New Music Economy
- Catalogue Music
- Artist Development
- ARIA Charts
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Editorial summary, takeaway, and curation by AIssential. Original article published by Artificial intelligence (AI) – The Conversation.