Latest news with #MIDiA
Forbes
28-05-2025
- Business
- Forbes
In Music's Fragmented World, Artists Launch Path Forward
The music industry is at a turning point, according to MIDiA Research. The company recently reported that while success remains near guaranteed for top musicians, newcomers on the scene are increasingly facing a different reality. MIDiA's Bifurcation theory points to current industry challenges that are forming a new business defined by two parallel consumer worlds, "listen" and "play." Concurrently, AI is evolving music technology, changing how artists and fans interact. In today's fragmented music space, streaming is less than profitable for most artists, and few consider it the destination for connecting with fans. More artists are also forgoing traditional record label deals that typically take the greatest cut of earnings, opting instead for social and UGC platforms where they can forge direct connections with consumers and younger fans. According to MIDiA, traditional streaming is expected to become a passive consumption space focused on record label artists while social apps will fuel more fandom, discovery, creation and play. Paving a new path for musicians is Nick Hexum, lead vocalist of multi-platinum rock band 311, who recently founded his own digital music platform, SKP. The new business connects artists and their managers with a vast array of key services including project management, marketing, payments and distribution. Users of the platform can gain an integrated view of their business and leverage data insights to make more informed investment decisions. Hexum is also focused on helping artists maximize their earnings and retain ownership of all their music. "SKP is an idea that's overdue, I don't think the old model will hold much longer," Hexum says. "We want to be the ones offering disruption in favor of the artist, because music is such an essential part of our lives, and it can do so much for your mental well-being." SKP's vision is to scale through network effects and word of mouth. Hexum says that he is not seeking to sell to a record label, though they are his main competition. His goal is to operate as a grassroots organization integrating new AI and technology solutions over time. Analyzing the music business, SKP identifies gaps in social and streaming spaces to give artists a boost across leading platforms. "We realized we wanted to disrupt the label grift. Some people blame streaming as the villain, but the record industry is back at all-time highs," Hexum explains. "There are little tweaks we can make in the (streaming) payout system, but overall it's been a good thing for artists. It's really been the labels that have been taking too big of a cut." Recalling 311's record deal signed in 1992, Hexum says it included a provision that, regardless of expenses, any new format or technology would pay artists less. That memory inspired Hexum to design his network "for artists by artists" in which clients become business owners. Many other artists are also championing more equitable music careers. That's Love Records co-founders Alex Garcia and Max Shrager established their label in 2024 after years of recording music together in Los Angeles. Garcia says, 'Coming from my own experience working with an independent label with my band Thee Sacred Souls, I wanted to keep that same ethos of a family-style label and pass the torch on to others. Ultimately, the goal is to share honest music that we genuinely like with the world.' Love Records explores an artist's cultural heritage, artistic vision and aspects of their musicianship to present their music in the most unique, compelling fashion. The result is successful distribution, shipping 45s across the globe to every continent except Antarctica so far. "It's exciting to see that the appeal is global. It's about helping each of our artists identify what makes them compelling and unique, and then creating music and visuals that showcase those qualities," Shrager says. Most recently, Hexum dropped a solo EP, Waxing Nostalgic. Expanding his creativity, the release blends classic sounds of the mandolin, pedal steel and fiddle.
BBC News
27-03-2025
- Business
- BBC News
As music streaming subscriptions stall, are price rises inevitable?
After years of explosive growth, the music streaming market in the UK is levelling out, new research half the population, 32.4 million people, has now signed up to apps like Spotify and Apple Music, according to music industry analysts MIDiA vastly more than the 20 million who pay for video streaming, but the number of new subscribers is tailing off. About 1.25 million new customers took out a plan last year, said MIDiA, representing growth of 4%. In 2020, that figure was 9%.MIDiA says the slowdown will lead to higher prices. "If you're not growing users, what do you do? You get them to pay more," said the company's managing director, Mark Mulligan. Spotify has already bumped up the price of its premium plan in the UK. After years of being held at £9.99, it increased to £10.99 in summer 2024, and £11.99 last Swedish company is also reported to be introducing a new high-fidelity streaming option this year, which could cost an extra £5 a Music, which is the UK's second-biggest streaming platform, also increased its prices in said that was just the beginning."Over the course of the coming years, expect a continued and concerted effort from the music industry, of finding new ways to get subscribers to pay more money." Sony Music's president of global digital business, Dennis Cooker, argues that such increases are vital."Spotify has publicly commented that their intention is to launch a higher price tier. I'm relying on that, and assuming that that is going to happen," he said at an event held by the recording industry organisation the IFPI last to MIDiA, one alternative would be the introduction of "a really cheap, entry level" subscription to attract new users; but Cooker rejected that idea."We've really tried with mid-price tiers and, frankly, struggled to get them to work," he who don't want to pay can already access a "pretty robust" offering on ad-supported services like YouTube; while a monthly subscription offers millions of songs to everyone."Finding something in the middle that you can actually explain to consumers and that is different than what's already on offer has been really, really challenging," he explained. Outside of the UK, MIDiA's latest report showed that the number of people subscribing to music streaming services grew by 11.6% of the growth came from emerging markets in Africa and India. China also extended its lead as the world's biggest streaming market, with 190 million predicted that the growth of streaming services outside Europe and America could change the way we listen to music."We'll see a cultural shift where these massive installed bases of streaming users in the global south will shape listening habits in the west. "As they become bigger markets, more people [in those countries] will want to become artists, and more people will want to set up record labels. "So more music will be made, more music will be exported, and there'll be a sort of cultural rebalancing." The change has already begun. According to the IFPI, Sub-Saharan Africa was the world's fastest-growing music market last year, with revenues surpassing $100 million (£770,000) for the first like Afrobeats and Amapiano are already hugely popular and, last year, Nigerian star Burna Boy became the first African artist to headline a stadium show in the Korea is also a powerhouse - accounting for 45% of all physical albums sold in the last year - while Latin America boasts some of the world's biggest recording artists, including Bad Bunny, Karol G and Peso a result, the UK's historic musical dominance is waning. Last year, British musicians failed to appear in the Top 10 of the world's bestselling singles or albums, for the first time in two decades."In basic terms, the democratisation of music that we've seen, thanks to streaming, is wonderful - but it's a very crowded space," Victoria Oakley, head of the IFPI, told BBC News."The UK is seeing breakthrough artists like Myles Smith and Lola Young," she added, "but that journey is rarely about overnight success these days. "It can take five or six or seven years to get to the point where you're a big household name, winning awards and number one albums. "So the work is going on behind the scenes. It just requires more navigation than before."
