Streaming Music
It’s hard out there, I know it don’t look it… Hayes Carll
Services that stream music with little or no cost to the listener are making a play to become the future for casual music listening. The heavy hitter in this bunch, Spotify, rolled out to the USA a month ago and the reaction has been extremely positive, which is fairly surprising when I really look at who is saying they love it.
As a music fan, who wouldn’t love it? Music for little to no cost… sounds perfect to me. However, looking at reactions from those in the business (granted most are still music fans), I’m really shocked that no one seems to pick up on the fact that this will kill anything left of income from music sales.
Bring on the visuals
Key point: the number down the middle is the number of sales/plays needed to make minimum wage.

Even though this chart is a year old with some infered figures, the information is relevant. In a nutshell, for musicians (and their business counterparts), it shows that more people listening to your music does not mean that you make more money/success. That model has been dying for a while, but Spotify is the finger slowly pulling back the trigger.
What does this mean for artist and their business counterparts?
You have to come to terms with declining music revenue and figure out a different way to make money and define success. Lesfetz says that the future is tour and merch, but I think he’s jaded towards established acts. Smaller, more independent, acts are going to need to get creative.
I’ll go on record as saying that if Spotify doesn’t get shut down, a year from now album sales/release charts will start becoming pretty irrelevant. Musicians last hope will probably be in Apple, that has a HUGE vested interested in making money off the iTunes store… It’s what sells their devices. With more money than the government they can buy out Spotify, Last.fm and Pandora as if they were paying a yard man. iOS 5/cloud services are coming this fall and I don’t expect them to go down without a fight. Keep in mind that fight may include shifting gears to a streaming and royalty payout service that would make that last pink dot in the chart look small.
What does this mean for music lovers?
It may mean less music from our smaller independent guys. If it costs $10K – $50K++ to make a produced record, how do they get their money back? Right now either a label picks them up or they do it themselves and repay it with album sales. Either option is damn near impossible when albums don’t sell. Just making an album becomes a high risk investment that probably won’t be made. How many of you would drop the smaller $10K on a 50/50 investment… let alone on what I think will be a 20% chance of breaking even at best? Musicians have to eat and need a roof over their heads just like the rest of us human beings. How can they even begin to make the jump to full time music if we don’t recognize that we play a part in their lives?
…Unreal. It’s Sketchy out there. Thanks to everyone that keeps us afloat. ~Dustin Kensrue (via twitter on the chart above)
We are ALL part of a music scene that is changing the world. Fans need musicians to break out of the mainstream formulas, write honest songs and sing from the heart. Musicians need fans that will listen, let the music drop in their soul and support what they do.
“…support what they do.” That’s what really changes for everyone. Musicians are figuring out “what they do” in a time where albums sales are dropping. Fans are figuring out that “supporting” now means things like Kickstarter, Patronism, house concerts, LP’s or higher door fees.
“support” and “what they do” is what the change to streaming music really boils down to. Ignore it to the detriment of music we love.
UPDATE: There is a Part 2. Be sure to Read It