by Guest writer Curtis Dean of Sage Music It’s hard to think of any business that wasn’t impacted by the pandemic. Every single industry took a big hit. And, since 2020, most of the things have gone online. Even schools and classes have moved online along with online entertainment and online music lessons. In this post, we look at how COVID-19 affected the music industry. What new challenges do artists face and what new opportunities do they have? What's the future of live performances and are live streaming services here for the long haul? Let’s take a look... The Business Model of Music Global music is estimated to be a more than $50 billion industry. It has two major streams of income. The first comes from sales of tickets for live music performances and concerts which make up 50% of the overall revenue. The second revenue stream is recorded music. This entails sales from digital downloads, physical media, streaming services, and synchronization revenues (such as licensing for movies, TV, shows, games, and advertising). Recorded music today is at an all-time high (close to the pre-piracy era). This shows that the world is embracing stream services. Both consumers and music labels seem content with it. Stream services today make up for more than half the recorded music revenue. COVID-19 Hit the Industry, Not Just Artists COVID-19, quarantining, and lockdown meant the end of live performances. This collapse of the live industry affected not just artists, but hundreds and thousands of people who were employed alongside. This includes transportation, equipment companies, crew members, sound engineers, venues, hotels; and everyone in-between. According to a report published in July 2021 - the international dance and music industry witnessed a steep decline in 2020. It was down to $3.6 billion. That’s a 54% decline. Since the lockdown, 74% of musicians experienced unemployment with a steep plunge in their annual income by $36,000 a year. Several venues in Nashville lost around 70% of their annual revenue. The industry suffered around $17 million in lost wages. To make things worse, most artists could not go to a studio for recordings to utilize the digital platforms. New Ways to Engage with Fans It’s here already. Think of services like Instagram TV, Twitch, and several others. Although these services existed even pre-covid, the pandemic just gave things a big nudge. It expanded the available audience. Record companies are now facilitating it via live streaming equipment to performers. With streaming services emerged newer ways of monetization. We now have a membership to access early/exclusive data on artist channels, as well as paid-commenting features. There are also virtual gatherings happening. Take Tencent Music Entertainment for example. This China-based company recently released data about how the live streaming services impact their revenue. According to the company, almost 80% of musicians who are receiving incentives saw a rise of 50% in their profits. Around 40% of artists admitted seeing a double increment in their income. It’s getting clearer by the day that these new ways for venue providers, labels, and musicians to engage with their fans might be a long-term strategy to connect with audiences. How Live Performances Fit Into This New Paradigm One segment of the music industry that took the brunt of the fall has to be the live performance. Although vaccination programs are underway, it seems as though live music performances won't be making any return any time soon. Musicians will have to face this reality and sooner the better. It’s time for them to think of new ways to make music collaborations and access to their music possible while also keeping fans entertained. The barriers posed by COVID-19 can be circumvented in new and unique ways. There are online collaborations; for one thing. Take Colonel Tom Moore, for example. He recently became the oldest person to be featured on the top UK charts. He collaborated with NHS Voices and Michael Ball to release the cover of You’ll Never Walk Alone. The fundraising project raised more than 30 million euros. How Platforms Are Changing Music sharing and streaming services are further changing the music industry. For example, musicians are now holding virtual concerts to share new releases and raise funds (as we shared already). Not so long ago, Spotify came up with a new feature that allows fundraising for musicians via their profiles. Other popular platforms for artists are -
Will the Pandemic Revolutionize How People Access/Listen to Music? We need to face it - COVID has already changed/revolutionized the ways fans access and listen to music. For example, there’s a massive shift in drive-time and talk radio music habits. More people would use Alexa and Siri to find their favorite artist rather than accessing the traditional in-vehicle music experiences. Also, since more people are at home, there’s more time for entertainment and music. Deezer and Spotify saw a change in their listening habits during the pandemic. There was a major overall increase in the listening metrics. In the UK, radio streaming rose by 18% while Global (owner of Capital FM and LBC) saw a 15% increase in online radio listening. There’s a new lifeline for musicians all over the world; thanks to new and emerging music platforms like Spotify. Other examples include - Stagelt, Bandzoogle, Beatstars, Memberful, Nugs.net, and BandsInTown. All of these are super easy to access. Artists can keep track of their performances and sales metrics. Adapting to Consumer Demands Technology is at the center stage of the music industry controlling everything from production, promotion, to distribution. It’s clear that fans are fine with streaming content online. It’s not surprising that there was much protest initially by several musicians owing to unfair compensation. But, they are now forced to accept this new model as it’s what customers want. Platforms like Apple Music, Pandora, and Mixcloud have made things effortless on part of listeners. Features like creating playlists and on-the-go listening are some of them. In Conclusion Love it or hate it, musicians cannot do without online streaming services today. They need to find new and innovative ways to engage with fans. Offering exclusive content with promotion codes is one way to do that. When used creatively, the possibilities for artists are endless today. Curtis Dean writes on behalf of Sage Music School, where they base lessons on the science and research of the psychology of learning. Their effective teaching methods create confident and capable students who enjoy the happiness of making music.
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AuthorMichelle Lockey is a multi-award winning singer-songwriter sharing the knowledge she has learned over the years writing for Film & TV. Like what you are reading? Please Sign up to receive a FREE Music Licensing checklist! 10 Steps to Sync Success
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