The Advantages of Music Streaming Platforms for Artists

As an artist, streaming platforms can help you achieve several goals. These include growing your fan base, connecting with fans more personally, introducing listeners to new music, and obtaining a more significant share of the revenue. Streaming services also offer various other benefits, including a broader range of pricing options and diverse music collections.

Growing fanbase

The best way to grow your fanbase on music streaming platforms is to use social media. You can use Facebook and Twitter to build your fanbase and cross-promote your music. You can also join contests and ask fans to follow you on various platforms. However, the most effective way of growing a fanbase on music streaming platforms is by tapping into an established artist’s fanbase. You can gain new fans by remixing their songs, collaborating with them, or even releasing music on their label using the best audio streaming services.

Music streaming platforms like Spotify and SoundCloud are excellent places to build a fan base. You can provide your fans with exclusive content and rewards for following you. You can also use landing pages to attract fans from social media sites.

Introducing listeners to new music

Introducing listeners to new music is essential for a variety of reasons. Listeners need to hear about new artists and the latest releases to decide what to buy or download. Moreover, they must know whether the music is new or trending. For all this, it is essential to consider the function of the music.

Paying artists a higher percentage of revenue

While music streaming platforms are still relatively new, they have quickly grown to become a significant source of revenue for artists. As of 2019, they accounted for $7.1 billion, or 63 percent of recorded music revenue. In contrast, CD sales revenue was only $614.5 million in 2019, down seven times in just a decade. The shifting music industry has created a new paradigm where streaming services pay artists a higher percentage of their revenues.

Major artists are often at an advantage when negotiating with music streaming platforms. Because of the company’s slick features, artists with broad appeal will benefit from a better deal than those with smaller, niche audiences. Spotify, for example, recently signed a deal with Universal Music Group to provide artists with access to their catalogs. This agreement will take effect by the summer of 2020. This means that the PPS fee for artists signed to Universal Music Group will likely be higher than those signed to independent record labels.

Increasing revenue from subscriptions

In the first half of 2020, paid streaming subscriptions accounted for 52% of total music revenues. This was down from H1 the 2020s $740 million and $444 million in H1 2019. The decline in digital downloads was mainly attributable to the coronavirus, which also affected CD and vinyl sales. But the industry is beginning to recover. Music streaming services are now the most common source of revenue for artists and record labels, with revenue from subscriptions growing 27% in the first half of 2021.

The music streaming market is largely fragmented. Service providers use a two-step strategy to increase subscriber numbers: advertising campaigns to enroll people and enticing offers and discounts to upsell them. They’re also expanding their geographic reach. For instance, Apple plans to roll out its music streaming service, Apple Music, to 52 new countries in April 2020. This expansion will further increase the music streaming market and drive more paid subscriptions.

Increasing revenue from ads

The growing popularity of music streaming services has generated significant revenue for music labels. These platforms are the preferred choice of millions of listeners, making them a highly profitable revenue source. Spotify, the essential music streaming service, has over 200 million active fans. These users are highly engaged and likelier to convert their listening into a live concert experience. According to Spotify, the company generated over $4 0 million in ticket sales for over 700 artists in 2018. The revenue stream from these listeners is an excellent opportunity for music venues and labels.

The music streaming industry is poised for continued growth and success. The global music market is valued at $19 billion, with streaming accounting for over 50% of the revenue. Moreover, about 255 million paid users and three-quarters of internet users listen to music online. Although free streaming services are the most popular and dominant, subscription services are increasingly taking the lead in the revenue model. The industry is also investing in new technologies like smart speakers and home assistants to provide music streaming services to the general public.