It has become commonplace to hear artists, management, agents and labels complain about how streaming will crush the music industry.  This same mentality arose during the transition into the CD and digital downloading eras.  Don’t fear the numerous myths that have saturated our industry, streaming is not evil; merely different.  And it is about to become the next powerhouse, quite possibly changing music distribution in a way never seen before.  This transformation has already commenced in television and film.  The music industry has fallen behind, but is quickly catching up with vengeance. 

To understand the trends that are changing the way music is distributed, we must first take a look at the behavior of the driving force behind new technologies: The Millennial Generation.  The Millennials are categorized as individuals between the ages of 19 and 28.  Technology has been an integral part of the Millennial lifestyle since their early formative years.  According to the latest Nielsen Report, Millennials make up roughly 15% of the US population.  Three out of every four Millennials own a smart phone, and over half own at least one laptop, tablet and/or gaming console.  They are a more engaged audience, interested in real-time updated trends, driven by the nature of web-based culture.  This higher level of engagement makes the presence of strong niche markets more feasible.  Millennials have grown up in an age where improvements and updates are just a click away.  And when it comes to content consumption, they follow the path of least resistance.  

Netflix was founded in 1997 in response to the rising presence of late fees.  They introduced the concept of unlimited content access based on a monthly fee.  This appealed to consumers who had previously been subjected to late fees that stacked up like a 5 year old’s lego tower.  As internet-based content became more commonplace, Netflix introduced streaming, and the concept of an insta-queue, where subscribers could choose from a content database that was instantly accessible.  

Now, Netflix has begun to introduce original and exclusive content, in an attempt to rival Premium cable titans such as HBO.  Introducing smash hits like House of Cards, and a revamped season of Arrested Development, Netflix has initiated a conversation that the music industry SHOULD be taking note of.   

Almost every musician has heard of at least one Music Streaming service.  Companies such as Deezer, WiMP, iRadio, and Spotify have popped up, offering the same concept as Netflix to their users.  However, one key distinction is that music streamers lack any substantial original content.  

It is important that we look not at what streaming currently offers, but what it will become in the future, to understand why artists should be paying attention to this trend.  Music distribution will change in a way never seen before.  As I discussed above, the Millennials are all too key to this revolution.  Content consumption is not limited to a single device.  People don’t just consume content on a desktop.  Music is consumed in one’s car, on a commuter train, in a plane, at work, at home, etc.  Millennials are notorious for their numerous electronic devices, which means a multi-device interface for streaming is in high demand.  Streamers are quickly looking for solutions to fill this void.  The possibility of bundling options, similar to what we see in cable television, are in talks.  There could be a day quite soon, where music consumption is embedded within one’s monthly wireless data plan.  

Artists; If you have already introduced your music onto streaming sites such as Spotify, Pandora, iHeartRadio and others, work with your contacts within these companies.  Suggest special promotions, and offer ideas that can help both you, and the streamers.  This may seem like an unorthodox approach to music distribution, but that’s exactly my point.  Don’t rely on a record label or manager to handle album promotion.  Streaming is something very young, and the companies involved are, and should be accepting creative ideas.  Who knows, maybe Spotify will place a spotlight you and your content.  

You have seen the success that Netflix has gained with exclusive content.  There is no reason this concept cannot be paralleled in music streaming.  You have already accumulated a vast database of artists.  Pick standout groups, and negotiate deals that can help draw their fans to your portal.  Imagine picking the next Adele, promoting her work (which is solely available via your streaming service), and gaining her loyalty for the next 10 years.  There is no reason that a reasonable investment in original content development cannot yield positive results.  

This article is not meant to be a final solution to the challenges music streaming presents to all involved.  I don’t expect to be receiving calls from the top streamers, begging for more of my ideas.  I just hope this will initiate a more expansive dialogue between streamers and musicians.  It’s time to stop fighting with one another, and get a conversation started.  We have so many challenges that face us in this industry, but are eager to turn down potential solutions.  And of course, it is always important to remember the reason we are in this industry- to promote and share our passion for great music to society.  

Thanks, and Happy Music Making!

-Dillon Roulet

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