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Is music streaming the future of the industry?
Other | Thursday 16th January 2014 | Nicole Breeden
After BT and Beats Music announced that they are both launching their own music streaming services, consumers and those within the music industry have been left wondering whether streaming is for the better.
In the late 1990’s a number of peer-to-peer file sharing networks evolved such as Limewire and Napster etc which enabled users to search and download songs for free. In 2010 Limewire was ordered by the court to stop distributing the software and for users to delete it as they were trading copyrighted files without authorisation. Napster functioned similarly to Limewire and also faced copyright breaches however then became an online music store like iTunes in 2001.
Music streaming however, is where a platform such as Spotify or Deezer etc are licensed to store music from record labels onto their platform. Users can either listen to this music for free but with advertisements or subscribe to listen and create playlists of music without advertising.
BT’s music streaming service is part of the BT TV package which allows customers to create their own playlists, stream albums, sing along to karaoke tracks and watch concerts. For unlimited customers this service will be free however to receive this service otherwise it will cost £3 extra a month.
Ian Rogers, CEO of Beats Electronics said that they are set to launch their streaming service in January 2014 on Twitter recently. Beats music is based on the existing music streaming service ‘MOG’ which is owned by the company and the business model is yet to be revealed.
Record producer Andy Haldane doesn’t see the point in having more than one streaming service however. He said “Frankly does it make sense that 2 million people all have a copy of a Lady Gaga mp3 when iTunes can have 1 copy and stream it out when needed?.”
Nevertheless he added that Spotify is the current leading music streaming service in the market. The ‘leaders’ announced shortly after these additional music streaming services were proposed, that they will be making the free version available on mobile devices also instead of only being available on desktops. The free version of Spotify features adverts and doesn’t allow users to make their music mobile. It also only allows users to stream a limited amount of music therefore expanding the free version to more platforms hopes to encourage more subscriptions.
A user of Spotify Georgia Polivious said “I am so excited that I will be able to use Spotify for free on my iphone but not so excited about the adverts following me from my laptop also. Since it will be available on the go I think I will be using it more often meaning more frustration with adverts and eventually leading to me paying to get rid of them.”
However another free user of Spotify, Lisa Ball said “The free version has increased the usage limit so moving it onto more platforms will encourage me to continue using it, not subscribe.”
Music artist Pharella said that illegal downloading “is of the norm now and the industry is going to have to try to think of a way to stop this before its too late and gets out of control.” In accordance with statistics, it appears that music streaming may be the way in which the industry are trying to tackle this issue. For instance the Recording Industry Association of America state on their website that between 2006 and 2009, the percent of internet users downloading music illegally declined from 19 to 14 percent, while the percentage engaging in legal music downloading grew from 16 to 20 percent. More recently according to the International Federation of the Phonographic Industry’s digital music report (2013), streaming services now account for 20% of music revenue.
Pharella added that music streaming seems to be impacting the industry positively in terms of promotion. She said “Putting my music on a streaming service helps the sales especially if there is something visual with the song. People may see or hear it and then want to buy the track.”
“On the other hand people have created YouTube converters which allow people to take the video link and transform the mp4 to an mp3 therefore it is like a form of illegal downloading which again doesn’t help the industry. So overall I have mixed feelings about streaming because it can work as a disadvantage as well as an advantage.”
In addition to established companies creating their own form of music streaming services, others are incorporating them into their businesses somehow. For instance Vodafone have teamed up with Spotify to add Spotify premium to their 4g packages.
Ben Taylor, senior corporate communications manager for Vodafone UK said that “4G isn’t just about the speed it’s about what you do with it. We’re not just playing the ‘look it’s really fast card’ but demonstrating why 4G might be something you’d want to have.”
A regular to music streaming, Steven Breeden said “I have the service as part of my mobile phone contract so it comes inclusive of the minutes. This allows instant streaming and a very quick upload. I believe that it is the future of the music industry because of the fact that it is inclusive of the minutes so comes at no extra cost which will therefore influence more people to do it. It will not re-coop all of the industries lost revenue through illegal downloading but should give them a fighting chance in controlling it.”
Although it has been said by many that music streaming is helping the industry, the opposite is also argued. Record producer Andy Haldane also stated “At the moment streaming accounts for almost zero income for all but the very biggest artists with huge (at least 1 million) plays on YouTube or Spotify. Less than that and you may as well just work in a bar and play music in your spare time. Streaming is of no use right now to the general musician but I reckon in 5 years that may well change, problem is that it needs to change sooner than that, because download sales are a very poor way of ensuring income for an artist.”
George Nicola, someone who usually likes to keep up with the latest technology also thinks that music streaming services are a bad thing. “Its damaged the economy and making the high street a thing of the past as people just don't go into shops anymore to buy cd"s. They stream or purchase music online which puts more people out of work. The only winners are the distributors as they still charge the same for an album but don't have to do any packaging etc.”
In contrast, Andrew Browne the director of record label InsideOutRecordings, said “This is the way of the market now and anything that encourages music purchasing is a positive. The cost of digital distribution is obviously far cheaper than physical so if the same price is being charged, a greater return should be given to the maker of the music. Streaming is the halfway house between purchasing and pirating”.
