How have record labels combated the rise of streaming services?

MUSIC COACH SPEAK #18


How have record labels combated the rise of streaming services as an alternative?


Well at first, they didn't take too well to it.


Major record labels prefer to remain within the confines of the old days.


Change brings uncertainty and just like banks giving out loans, record labels want to ensure they will receive a return on their investment.


They want to make all their money back and then some.


Streaming presented itself as the change of course for availability and a medium to consume music.


Revenue generation in streaming has been difficult for some artists as you may have seen the many complaints online going back as far as 2014.


For record labels and the music industry as a whole, it has been hard over the years from the Napster days but record labels, in my opinion, have found their footing.


Record labels have recognized that solitude of content DOESN'T MAKE MONEY or as much money as they're used to making.


Plus the artist gets less and less without the revenue or returns. Record labels own most of the rights to the content we hear.


So the decision to make it available and leverage the value of that content is where the record labels got smart about their business.


They took Phase 5 of the Greiner Curve organization maturation stages and implemented it by developing better partnerships with complimentary organizations that need what they own to thrive... CONTENT (ie: your music).


(SN: Own your masters, people!)

This helped them to generate over $1.5 billion in revenue in 2018 and after some renegotiating with the streaming services,


I think they have combated the rise of streaming services as a distribution alternative quite well.


Who knows what this year is going to look like for them as they take an even bigger share of the pie.


Still a question of the slice getting bigger or not for artists/songwriters. We'll just have to wait and see.

7 views0 comments