The Changing Landscape of Music Revenue
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The Changing Landscape of Music Revenue Welcome to this month’s edition of our newsletter! Today, we delve into a significant shift in the music industry: the transition from physical music sales to streaming services, and how this change has impacted artists and the overall revenue landscape. The Rise of Streaming Services In recent years, streaming services like Spotify, Apple Music, and Amazon Music have revolutionized how we consume music. With millions of tracks available at our fingertips, listeners can easily access their favorite songs anytime, anywhere. However, this convenience comes at a cost—particularly for the artists who create the music. The Revenue Disparity Historically, physical music stores offered a more substantial revenue share to artists. When a CD or vinyl was sold, a significant portion of the sale went directly to the artist or their label. For instance, a $15 CD could yield several dollars for the artist after production and distribution costs. In contrast, ...