Music streaming is a very fast rising market that also happens to be a game changing market. Music streaming is a service where you can stream music from a companywhere and at any time as long as you have a connection. When a customer clicks play, they're actually choosing to license that very song (Ganz). Each company has a library of music that you're allowed to listen to as long as you have access to their services. The standard business model is to charge a customer a monthly fee at about $9.99 or so and it works really well considering that in 2016, music streaming made up to $2.48 billion in revenue (Richter). A few services will lower the price of the service depending on the status of their customers such as for those who are attending college. This greatly raises the appeal of the music streaming service as it becomes much cheaper, sometimes at half the price and attractive to a customer base that would have opted out for illegally downloading music instead which is still very easy to do.
Music streaming has become the go to platform for listening to music and it has proven that its market isn't going anywhere soon and in fact, the market has a lot of room left for market segmentation. Services are now offering up more to differentiate themselves from others by appealing to certain crowds. The biggest offering in this case is exclusive music and early releases from certain artists who help build the brand of music streaming. Other offerings include live twenty-four seven radio, exclusive original video content, original shows, curated playlists, and more as they continue to try new things to attract new customers or bring in customers from another music streaming service. Artist also benefit from this technology as the development of music streaming services have led to them having many different options to use for broadcasting their music. No longer are artists reliant on radio stations to stream their music for fans, now they can put their music ou there and allow fans to consume it as they please as well as attract new fans as it becomes easier and to find new artist every day. Music streaming has many other benefits as well and overall it's a rapidly growing market with great offerings to customers and opportunities for music companies and artists alike.
Different music streaming services offer up different services which distinguishes them from the comeptition. Apple Music offers Beats 1, their twenty-four radio station with different celebrity hosts such as Pharrell, Zane Lowe, and Drake. Drake, who has built a brand with Apple Music releases his own music through the music streaming service to great success. He's not the only artist as others have also used Apple Music to gain poplarity and success by using Apple Music to launch exclusive content or attach their names to a brand. They also launched their first show with James Corden called the "Carpool Karaoke: The Series" where celebrities join him in a carpool ride and sing their favorite songs. Spotify has similar offerings with very similar success with both being well known for their curated playlists. The newcomer TIdal, owned by Jay Z, is starting to catch steam through the same methods altough it has a higher price tag it brands itself on quality with hi-fi streaming which is streaming with no sound loss. Soundcloud, a streaming service that has a huge customer base that doesn't pay for a subscription to its service, focuses on content for aritsts to share and curate with each other as well as fans who are looking for the easier access to underground, non-major label, and hard to find content. Pandora is another music streaming service that has huge success with the algorithms it uses to play music suitable for your taste although you can't control the content but that's actually good for those who don't want to have to find new music to listen to after a song goes off or they run through their playlists. There are many other music streaming services available right now in the market but they're all receiving some type of success thanks to the appeal of music streaming rising incredibly.
Thanks to music streaming artists are able to reach out to their fans in new ways as well as reach new friends. Streaming gives artists the capability to put their music on a platform without the need for a major label's backup. It was already possible through downloading files however music streaming is a much more efficient option as you don't have to store and transfer files over to your mobile device nor do you have to go through the process of finding a safe download. It also offers a better connection with the fans as they will know when content is dropping and for certain services their music will be automatically shuffled into their "favorites" playist and other similar playlists as well for listening to later. It's also very easy to find new artists as the streaming service will either suggest them to you by analyzing your favorite artists or through curated playlists that list what's new and hot in a certain music genre like R and B or Hip-Hop.
Music streaming has a huge potential with the social media capabilities because as of right now they go hand and hand with each other. Soundcloud is arguably one of the best at sharing music as you can share a Soundcloud link and not worry about yout feeling audience lacking a subscription. Soundcloud also has a lite social media aspect built into it with the comments a following system as well as something akin to a friends' list. Apple Music and Spotify seem to be trying to tap into this as well with their software however Soundcloud would still be considered light years ahead of them as it's much easier to make social intercations across Soundcloud than it is to even make simple conversation on Apple Music. This is due to their different origins. Soundclud has made its name by bringing artists together to share and shape the music culture. Without Soundcloud, many artists wouldn't have been able to come together and create new music and this is all due to its relatively well implemented social functionality.
With social functionality built into their infrastructure, music streaming services have the potential to separate themselves from customers even more by making music streaming a social experience for many customeres. It hasn't been perfected yet but at the rate music streaming is developing, it's not a far off concept especially considering that's there's a large amount of music streaming users. Sharing music from your Spotify account or Apple Music account easily helps people get into touch with music but being able to share it with them through the service will take their social functionality to a whole new level bybringing out communication within the service instead of outside of it on a social media site Facebook. While the marker does have a lot of ptoential, just like any other market it has risk.
Music streaming is a fragile and sensitive as other music paltforms. While I mentioned SOundcloud as a very important music streamin service, it's also facing major hits as the market continues to evolve with them anxiety forty percent of their workforce (Newcomb). It's important that for any company looking to enter the market be careful about how they approach it because the potential to fail is stronger than the potential to succeed, especially as they began to grow popular and copyright and licensing become a bothersome issue. Still with music streaming sales beating other sales in 2017, physical sells being about $1.67 billion compared to the $2.48 billion mentioned earlier, its definitely worth the risk (Richter). Those sales aren't going to change up drastically within the next year or two and the market itself is implemented everywhere and will be a major player in the music industry for a while regarldess if it does decide to slow down.
Overall, the music streaming market is a rapidly growing market that will continue to receive attention from the music industry and those looking to take a piece of the market. There's many ways to diversify yourself whether it's with actual content or through branding with certain artists Entering the market could give you a lot of success however it also comes with many risk. In the end, it's a lucrative market but the speed of its evolution should be concerning for those looking to enter the market. If someone studied the market and understood the music industr as well as the lagal work behind it, I wouldn't see why they couldn't get into the market along as they have a thought out plan.