What is the future of the music industry?

It’s been a while since the last time I published a blog post. I know, I shouldn’t be giving any excuses, but going on holidays changes my daily routines. I do like to dive deep into the local culture and make the most of my time when I am on holidays.

 

Anyway, since I came back two weeks ago, I signed up for an exciting course on Digital Innovation, Marketing, and Leadership by Google Squared. This is my second week on the course and we are learning about digital disruption. In fact, we do need to write some posts which I am planning to share with you and I hope you enjoy them.

In this blog post, I will show you my research and thoughts on disruption in the music industry and what the future might bring us. I know some of you would probably think now that the future is uncertain. Guess what? You are correct!

In 21st century technology and trends change with the speed of sound in this case 😉 So after reading my blog, feel free to tell me what you think about the future of music industry in the comments section below.

Q1 What ongoing technological advancements can we expect to see in the music industry in next few years?

In the past two decades, the music industry has rapidly changed from cassettes to CD’s to online music stores to streaming music. The progress in this industry is unlikely to stop or slow down, in fact, it will continue growing exponentially in different directions. So, the question is what the future has prepared for us?

  • Streaming music

On demand and personalized music is the game. In 2014 more than 14.8bn tracks were streamed and the trend keeps growing, as in 2016 the streamed songs only in the UK were 44.9bn.

The trend is here to stay with disruptive companies such as Spotify and Sound Cloud being some of the leading disruptors of the music industry. In addition to that, streaming and live streaming has opened the door for many small artists to make it big. Platforms such as YouTube, Vevo and SoundCloud are places where such artists can start building audiences and gain popularity.

Even giants as Apple has experienced a drop in the demand for downloadable music from Apple Music Store. The company has strategically purchased the brand Beats by Dr. Dre to gain access to the streaming industry.

  • Cheap and personalized music on the go

With the advancement of technologies listening to music has never been easier and cheaper. There appears to be an abundance of music, which pushes the prices down and customers prefer to pay less for streamed music that they can tailor to their preferences.

Wireless headphones have been on the market for a while, but now that even Apple introduced their AirPods (wireless headphones), they gave another stir to this industry. Regardless of whether you are a fan of AirPods or not, the idea of having music wirelessly on the go is great, especially for the sports enthusiasts.

It is just a matter of time when headphones will no longer require additional devices to play music, instead, they will be directly connected to your Spotify or another streaming service. Thanks to personal assistants such as Alexa, Cortana or Siri you can choose your favorite songs on the go, book appointments and do calls through your headphones. This will be amazing for long distance runners and gym fanatics who wouldn’t want to carry extra stuff and weight.

Artificial intelligence (AI) is also growing. Thanks to personal assistants such as Alexa, Cortana or Siri you could choose your favorite songs on the go, book appointments and do calls through your speaker or headphones. Using AI in headphones could be an amazing opportunity for long distance runners, gym fanatics and anyone who wouldn’t want to carry extra stuff and weight.

Q2 How will this disrupt the current music industry?

The abundance of global music and artists will drive the prices so low that singers will need to concentrate on making money in alternative ways. Today, there is more financial value for an artist to perform live on festivals than selling their music through traditional channels.

Artists will have to rethink the ways to make money from their music and brands.Taylor Swift pulled her music from Spotify in 2014, as she felt music should not be free and that artists should have more power to decide what price their music should be. Recently, she put her music back on Spotify but this time she has more power to choose who can listen to it and when. This proves that music streaming platforms are still strong nd negotiations with artists are ongoing.

Streaming music will grow even further in the following years, as we are expecting the mobile internet to get to 5G in the next few years. This will allow for faster streaming and better quality. This could improve the live streaming of music and concerts.

The music industry has certainly been transformed forever in the past few years. We can only wait and see what the next big disruption will be in this industry. It will be interesting to see how the industry can adopt new technologies and find new revenue streams. Until then, enjoy your personalized music and ‘The show must go on’! 😉

P.S. I am looking forward to seeing your thoughts on the subject in the comments section below.

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2 Replies to “What is the future of the music industry?”

  1. Disruption in the music industry is something a lot of companies aim at for building profits, since music is an almost unseparable part of everyone’s life.
    What I also find interesting, however, is the revival of physical products on the market, with turntables and vinyls being in the spotlight just now.
    Not as big of a market share currently as streaming or any virtual music providers, but maybe a potential disruptive strategy on its own?
    Food for thought, I actually wrote my dissertation along those lines, specifically on vinyl records (and you could probably guess who I am 😀 ).

    1. Hi Krisi,
      Yeah I know who you are 🙂
      Thanks for your comment. I agree with you that disruption is key. I also noticed that there is some trend of reviving vinyls. It seems to be predominant around creative people and some coffee places, redesigning their shops to more vintage style. It will be interesting to see where that goes. 🙂

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