Daniel Messersmith
MUS 120-04
Inter-disciplinary Perspective Activity
Eric Paton
16 November 2018
Independent Musician’s and Technology’s Influence on the Music Industry
For as long as recorded music has been eminent, the methods of consumption and release have been important to the culture that surrounds it. In recent years, the industry of music has developed in an unprecedented and substantial fashion through listeners streaming their favorite artists online. As reported by Business Insider, “music streaming accounts for 75% of all music listening in the US today, up from 50% in 2016” (Bhardwaj). These numbers represent a major increase in streaming over other listening formats such as downloading or buying CDs. Online statistics service Statista reveals the effects of Business Insider’s statement, as this new means of listening has risen from the ground up to a $7 billion industry since 2007, while the physical music business has lost $9 billion in the same timeframe (Richter). The correlation between modern technology and the prominence of music streaming cannot be denied and artists take advantage of this phenomenon. On the other side of the industry, more independent musicians and producers are entering more than ever before due to available technology and distribution at a lower price. How musicians are creating and releasing music in this era greatly affects the industry as a whole. Artists are making longer albums than ever to maximize “sales” because of the way streaming monetizes songs. The annual report by the Worldwide Independent Network displays a major change as independent artists’ streaming revenues grew by 80% in 2016 (“Independent Artists”). Billboard agrees with these statistics by stating that independent labels now account for approximately 40% of the global music market (Smirke). These sources uncover the power of new technology, as it creates a platform for any musician to make quality work. With the rise of easily tangible media through streaming, both the listener and creator depend on each other more than ever before. The change of music consumption methods and the prevalence of independent artists releasing larger amounts of music shows a major impact on the industry in the 21st century.
This illustrious method of music listening would not be available without the innovative technologies made possible in the last decade, and to consider it as a dominant reason would certainly be valid. Statista shows that the number of users subscribed to music streaming services has risen by 173 million since 2010, while physical music and illegal peer-to-peer file sharing has been decreasing steadily (Richter). It may not be a coincidence that this rise in users correlates with the increasing use of mobile devices like smartphones. In-line with Richter’s statistics, a global consumer trends survey helps to understand the rise of users by stating that nearly all developed countries have at least a 90% mobile phone penetration, with 80% of that being smartphones as of 2017 (Wigginton). With more powerful network connection in the average user’s phone, these two sources show that it is easier to listen to music with streaming than any other way. Many services use a cheap monthly subscription model that allows one to listen to millions of songs in an instant, as opposed to purchasing individual songs or albums at a time, which was the popular method in the early 2000’s. Issues of piracy were common in this earlier time as internet security was primitive and the MP3 format, which is the common and easy-to-share standard for music files, was the cutting-edge way to listen and download from illegal sites (Hracs). One would illegally download music through a quick internet search with intentions to sync it on their mobile device. This was largely popular as CDs started to decline in relevance because of the internet’s prominence. The Recording Industry Association of America (RIAA) expands on Hracs’ point and uncovers this deviation of piracy and CDs by charting the dramatic drop in use as faster devices and streaming services became normalized, leaving music industry penetration about half as strong since their peaks in the mid-2000’s (Russell). Both Hracs’ and the RIAA show that the decrease in physical format music listening, and peer-to-peer file sharing leaves more room for the music to be heard solely with a mobile device without external help from disc players and traditional computers. It also means those who aspire to record and produce their own music have a greater chance of doing so as they are able to invest less money and still create a marketable product.
Though mobile technology is a major cause for streaming’s escalation in popularity, those make music have also had a renaissance, shaping the industry into the new form society knows today. According to Brian Hracs, a researcher of social and economic geography, “the introduction and development of digital technologies has finally given musicians the tools to be truly independent” (Hracs). Cheaper music production software has allowed anyone to record their work without buying time in a recording studio or hiring audio engineers to finalize their product. Innovative technologies such as Avid Pro Tools, released in the early 90’s, introduced a whole new world of music production and recording. Artists are able to upload their music onto streaming services for little or no cost, letting their art reach millions of people instantly. Increased production of music due to cheaper technology has leveled the playing field and let many artists become prominent without record deals. The Bureau of Labor Statistics Data shows the effects of Hracs’ point by revealing a 71% increase of in independent musicians from 2003 to 2012 (Masnick). Both sources explain that those striving to create or play music no longer have to be employed by a record label in order to make a living from their work, and they do not have to pay others to market or distribute their music for it to become popular. Numerous artists have become popular in recent years by simply posting their work for a small price or free onto a streaming platform as opposed to releasing it physically or on an online marketplace. The numbers disclose the results of this change, showing that independent record labels collected $6 billion in 2017, as reported by Billboard (Smirke). These are record labels without the spectrum of resources and notoriety such as those of corporate titles. They rely on streaming as a platform to distribute their artist’s work and do not focus on individual sales as a means of revenue. It has allowed many musicians to skyrocket in popularity as there is a narrower playing field because corporate labels have a lesser advantage than in the past. Along with Billboard, the World Independent Network (WIN) shows the impression independent artists and labels have left on the industry, as they account for 40% of global streaming revenues (“Independent Artists”). These statistics from Billboard and WIN display a change in the music business, leaving physical formats and purchasing of individual songs or albums without a strong share of the market. As artists upload their music to a platform where anyone can listen, it negates the major investments that were required in the past to make one’s music a product. Due to increasing independent production of music, artists are able to release what they personally want and do not have to subject to a label’s desires of their product. This creates the possibility of an artist’s music to be more personal and closely aligned to their artistic vision.
It certainly cannot be denied that music streaming and the rise of independent musicians have helped to accelerate the change of the music industry. Those who make the music being consumed have had an impact on the way it is distributed, especially those who are using the internet as the main basis for their work. Streaming services have changed how music connoisseurs or casual listeners become fans of new music and creates a new business model of how music is marketed or shared, and it would not be possible without faster mobile devices used on a daily basis, nor an attempt to change the way music is made. Indeed, the rise of smartphones is clearly the major cause for streaming to develop into a widely used platform, though it perhaps would not be as prevalent without a focus on online release. The popularity of streaming depends mostly on the technology utilized for listening, and also the musicians and labels that produce it, but it would never be feasible without an end user who consumes the product. Streaming has worked its way into the daily lives of listeners like never before, as millions of songs are instantly available at the fingertips of the user. With online listening, music is no longer a pastime or a separate experience; it is simply another application on the listener’s phone. One might view it as a negative thing to change the business model and the distribution methods of music because of streaming, but the numbers surely prove it is the new way for it to reach its listeners, and the best way for artists to actualize their art into reality. The influence musicians and technology has had on the industry is monumental to listening culture and modern history.
Works Cited
Bhardwaj, Prachi. “Streaming Services Account for 75% of All Music Listening in 2018, up from 50% in 2016.” Business Insider, 11 July 2018, www.businessinsider.com/music-streaming-accounts-75-percent-consumption-album-sales-charts-2018-7.
Hracs, Brian J. “A Creative Industry in Transition: The Rise of Digitally Driven Independent Music Production.” Growth and Change, vol. 43, no. 3, 2012, pp. 442–461., doi:10.1111/j.1468-2257.2012.00593.x.
“Independent Artists Are Now a Billion-Dollar Market.” AWAL, www.awal.com/blog/independent-artists-are-a-billion-dollar-market.
Masnick, Mike. “Massive Growth In Independent Musicians & Singers Over The Past Decade.” Techdirt., www.techdirt.com/articles/20130529/15560423243/massive-growth-independent-musicians-singers-over-past-decade.shtml.
Richter, Felix. “Infographic: What a Difference a Decade Makes.” Statista Infographics, 8 Oct. 2018, www.statista.com/chart/15701/music-industry-revenue-by-format/.
Russell, Karl, and Ben Sisario. “In Shift to Streaming, Music Business Has Lost Billions.” The New York Times, The New York Times, 21 Dec. 2017, www.nytimes.com/2016/03/25/business/media/music-sales-remain-steady-but-lucrative-cd-sales-decline.html.
Smirke, Richard. “Indie Labels Raked in $6 Billion Last Year, Accounting for 38 Percent of Global Market: New Study.” Billboard, Billboard, 23 Oct. 2017, www.billboard.com/articles/business/8006977/indie-record-labels-global-market-share-2016-win-report.
Wagner, Patrick. “Infographic: Music Streaming Tackles Internet Piracy.” Statista Infographics, 26 Apr. 2018, www.statista.com/chart/13652/music-streaming-vs-peer-to-peer-sharing/.