Music Industry Evolution: Streaming, Trends, and Impacts

Platforms Revolutionizing Music

TikTok has become a significant platform for artists to launch their careers. By 2020, TikTok rivaled YouTube in popularity among children aged 4-15.

Music Industry Disruptions

Napster (1999) marked the first major disruption, enabling illegal file sharing and leading to the rise of MP3 files.

Shift: The industry transitioned from CDs to MP3s, and eventually to legal streaming services like iTunes, Spotify, and Apple Music.

2019 US Sales: Reached $11.1 billion, down from $14.6 billion in 1999, but rebounded with the advent of streaming.

Independent Artists

Approximately one-third of the music business operates outside of major labels.

Independent Labels & Artists Direct: Musicians are increasingly selling directly to audiences via streaming platforms.

Rebound in Physical Sales

2023: Physical album sales increased by 5.2%, encompassing CDs, vinyl, and cassettes.

Music Controversies

Rock & Roll (1950s): Was criticized for promoting immorality and was even termed “devil’s music” by some.

Waltz Music: Was banned in Europe due to perceptions of “immoral” dancing.

Drugs: The late 1960s and 1970s saw a link between drugs like LSD, youth culture, and rock music.

Artists who died from overdoses: Janis Joplin, Jimi Hendrix, and Jim Morrison.

Pop Music and Race

Pop Music: Appeals to large audiences or subcultures and is distinguished from classical music.

“Race Records”: Music by Black artists was initially labeled as “Race Records,” which was later renamed R&B in the 1950s, Soul in the 1970s, and Urban in the 1990s.

Cover Music: White musicians often covered songs by Black artists, frequently exploiting credits and royalties.

Oligopoly of Major Labels

Big 3 Companies: Universal, Sony, and Warner control 68% of the global market share.

Oligopoly: A market structure where a few firms control the majority of an industry.

Streaming Dominance

84% of US music revenue in 2022 came from streaming services:

  • Amazon: $11.23 per 1,000 streams
  • Apple: $6.75 per 1,000 streams
  • Spotify: $3.48 per 1,000 streams
  • YouTube: $0.22 per 1,000 streams

Controversies with Streaming Services

Artists claim that platforms like YouTube “exploit legal loopholes” and provide unfair compensation.

Exam Tip

Focus on keywords like Napster, TikTok, Oligopoly, Streaming (Spotify, YouTube), Physical Sales Rebound, Independent Artists, and Cover Music.

True/False Questions

TikTok is not influential in the music industryFalse

Napster disrupted the music industry in 1999True

These points cover the most critical topics and recurring themes from the presentation. Here is why they are the most important:

Major Disruptions

Napster, TikTok, and streaming platforms have shaped the modern music industry. Exam questions may focus on:

  • How Napster impacted music sharing.
  • TikTok’s role in launching music careers.
  • Streaming services’ dominance.

Cultural Controversies

Music and culture are intertwined. Rock & roll, drugs, and moral concerns about music historically generate exam questions:

  • Rock & roll being labeled “devil’s music” in the 1950s.
  • Drug influence in the late 1960s and 1970s.
  • Waltz music bans and controversies.

Economic Shifts

  • Oligopoly: Universal, Sony, and Warner dominate the market.
  • Revenue: Streaming services account for 84% of US music sales, but artists criticize unfair payouts.
  • Independent Labels: Growing as artists bypass traditional labels.

Race and Cover Music

Historical exploitation of Black artists’ work remains significant:

  • Cover music in the 1950s.
  • “Race Records” evolving into R&B, Soul, and Hip-Hop.

Physical Sales Comeback

The resurgence of vinyl and the rebound in physical sales indicate a new trend in music consumption.

Review specific years (e.g., 1999 for Napster, 2023 for physical sales).

Memorize key statistics:

  • “68% market share” held by the Big 3 labels.
  • “$0.22” per 1,000 YouTube streams (compared to $11.23 on Amazon).

Netflix as a Disruptive Force

Global Reach

Netflix streams subtitled original content globally, saving costs compared to creating US versions (e.g., Dark in German).

Success Factors

  • No reliance on TV ratings or advertising (subscription-based).
  • Fewer episodes (6-12 per season) leading to better quality compared to the traditional 22-24 episodes.
  • Weekly releases, not tied to the fall launch schedule.

Modes of Content Delivery

  • Linear TV: Traditional scheduled broadcasts (e.g., networks like CBS, TNT).
  • On-Demand: Streaming services like Netflix, Amazon Prime, Hulu, and YouTube TV.
  • Examples of new networks: Peacock, Paramount+, HBO Max.
  • Mini-Networks: MeTV, Laff, Comet – focusing on reruns and inexpensive programming.

Syndication

  • First-run: Original content sold directly (e.g., Judge Judy).
  • Second-run (Reruns): Old programs aired on other platforms (e.g., Friends, The Office).

Peak TV Era

Definition: A surge in the production of original content.

2009 → 210 series; 2019 → 532 series produced.

Concerns: Sustainability is questioned; competition will determine winners and losers.

US Television’s Global Dominance

Historical Boost

WWI disrupted European film industries, allowing the US to dominate globally.

Key Factors

  • Commercial Model: The US treated TV as a business, exporting it globally.
  • Innovation: Genres like sitcoms, soap operas, westerns, and gangster films originated in the US.
  • Large Market: Over 330 million people, with a global reach due to the English language.
  • Profits: Licensing fees bring in billions worldwide.

Television and Democracy

Mass to Niche Nation

  • Broadcast TV created shared experiences (mainstream culture).
  • Digital TV has led to fragmented viewing, niche audiences, and polarization.

Access Issues

  • Millions rely on free over-the-air TV for news and entertainment.
  • High-quality TV is becoming more expensive, excluding lower-income viewers.

New TV Production Trends

  • User-Generated Content: Platforms like YouTube, TikTok, and Twitch allow individuals to create and share video content.
  • Democratized Production: Low-cost digital tools enable new storytellers to bypass industry constraints.

Key Statistics and Terms to Remember

  • Netflix Subscribers (2020): 195.2 million
  • Syndication: First-run (original) vs. Second-run (reruns).
  • Peak TV: 532 series in 2019.
  • Linear vs. On-Demand: Linear refers to scheduled TV; On-demand refers to streaming.

True/False and Multiple-Choice Tips

Netflix disrupted traditional TV because it relies on ads and ratings → False.

Peak TV refers to a decline in TV production → False (It’s an unprecedented increase).

Second-run syndication involves reruns of previously aired content → True.

Linear TV is being completely replaced by streaming services → False.

Online Personas and Social Media Clean-Up

Employers often search for applicants’ online personas before hiring.

Online photos and posts can leave a negative first impression.

Deleting social media posts and accounts can be difficult; platforms like Facebook make it hard to clear data completely.

Fear of Missing Out (FOMO)

FOMO is the anxiety of feeling left out or missing something better.

Social media increases FOMO because people constantly see others’ curated positive experiences.

Reducing social media usage can decrease anxiety, depression, and FOMO.

The best path to happiness involves in-person relationships with close friends and mutual understanding.

Algorithms and Bias

An algorithm is a set of instructions written by programmers to analyze large data sets.

Algorithms are not always neutral. They can be biased because:

  • They reflect human biases during development.
  • Data sets used for algorithms can be biased (e.g., facial recognition misidentifies minority groups).
  • Example: Amazon’s search engine prioritizes profit over user relevance.

Online Filter Bubbles

Social media algorithms encourage exposure only to ideas and opinions similar to one’s own, creating filter bubbles.

Users are often separated into polarized groups because of this.

The Attention Economy and Addictive Design

Social media platforms like Facebook and Instagram use addictive design principles to maximize user engagement.

Examples: Infinite scroll, notifications, and “like” buttons.

Walled Gardens

Platforms like Apple, Facebook, and Instagram create “walled gardens”:

  • Closed ecosystems designed to keep users inside the platform.
  • Apple’s seamless integration across devices is a famous example.

The Digital Divide

The digital divide refers to the gap between people who have access to the Internet (information “haves”) and those who don’t (information “have-nots”).

Lower-income and rural households are less likely to have broadband access.

Smartphones help narrow this divide but are not a perfect substitute.

True/False and Multiple-Choice Tips

Algorithms can reflect human bias – True.

Social media causes FOMO and can lead to loneliness and depression – True.

Apple’s “walled garden” model provides more freedom online – False.

The digital divide affects rural areas and lower-income groups more – True.

Employers cannot view applicants’ social media activity – False.