Streaming constitutes an astonishing 84% of US music industry revenue, with SoundCloud, Spotify, and Apple Music being dominant players. Direct uploads on platforms like Bandcamp, YouTube, TikTok, and SoundCloud provide artists with avenues for direct engagement. However, uncertainties arise, such as Bandcamp’s recent acquisition by Songtradr and potential security concerns linked to TikTok’s Chinese connections.
Digital music distribution through platforms like CD Baby, Distrokid, and Tunecore simplifies access to major players like Apple, Amazon, and Pandora. However, Spotify’s upcoming royalty accounting changes in 2024 raise concerns about the impact on independent artists, challenging its recommendation. Artists face the dilemma of choosing exposure on major platforms against potential revenue and industry reputation concerns.
Amid the digital dominance, physical media, including CDs and vinyl LPs, retains significance, especially during live performances. The profitability and appeal of tangible music collections and memorabilia contribute to the enduring relevance of physical media. In navigating the music landscape, artists must strategically balance exposure potential, revenue considerations, and industry dynamics, adopting nuanced approaches tailored to their goals and audience preferences.
Despite streaming having such a large market share of music industry revenues, independent artists continue to find new ways to diversify their revenue streams with more traditional avenues. Streaming revenues are eaten up by huge artists that don’t necessarily have to rely on other money streams in order to be profitable, such as physical sales, online purchases on sites such as BandCamp, touring, merch and much more.