One might think that this is good news: it is the music market is finally in line with our customs! In 2015, streaming has become the primary source of revenue for the big music industry in the world, namely the US majors. In five years, revenues have soared since they almost fivefold. Other reasons for satisfaction for the music industry: overall, the music market in the US is growing steadily since 2010, and digital revenues taken over the traditional business. The majors are finally reconciled with the Internet. Champagne? Not so fast!
It remains a problem. It lies in the economic model of streaming: a mix between paid subscription and free ad-supported. However, the majority of revenue comes streaming subscription. Too few are from free listening … Shamefully little for the RIAA that brings the American majors! Without naming names, the president is attacking “the technology giants (who) have enriched music creators costs.” Still without mention Google or Youtube, denouncing the “many services (who) have made billions of dollars in revenue on the backs of artists, songwriters and labels”.
The scandal Youtube
That the majors do not digest, it is this distortion – certainly Important Information- between the number of pieces “streamed” and the income from them. According to the RIAA, the problem worsens with time. The proof of the scandal? Vinyl sales in 2015 reported more than hundreds of billions of bonus tracks on Youtube. We owe this amazing comparison or rather should I say this provocation- majors who know find the arguments to proclaim their anger.
What seemed like good news becomes new workhorse for the majors. Two options: either they get better pay for services funded by advertising, or they will obviously intensify their war against free … with the risk of totally free, unlimited and legal offers disappear gradually. Youtube has already taken a step towards the paid with Red. And it is rumored that Spotify does not preclude the possibility to reserve a portion of its catalog to only those users who pay. Outlook bleak for Internet …
Farewell to all-free?