The music industry had enjoyed success that was unrivaled by other industries, each year, growth was guaranteed. Sales of vinyl and CDs were booming, and artists and record labels were reaping the benefits. Then there was a shift in the way people were listening to music, peer-to-peer file sharing. Music was no longer a physical commodity. It was digital and in the “clouds,” and within a very short space of time, the music industry would halve its revenue, from $14.6 billion in earnings in 1999 to $6.7 billion in 2014.
With the growth of sound files flooding the web, it seemed like music was free for everybody. Some artists condoned sites like Napster and Limewire sharing their music for free, but the music industry, on the whole, was not impressed. Something needed to be done to tackle the rampant piracy that was now threatening the music industry. While advances in technology were the primary catalyst in the declining growth, technology would also be the solution to repairing the damage that had already been done.
The Rise of iTunes Gave Hope
Apple’s iTunes couldn’t have come at a better time. The music industry was not only flatlining but in freefall, and Apple gave the world a glimpse of the future of music sales and the way consumers played their favorite songs. The introduction of paid streaming of music was not a new idea, but with internet services improving, Apple took the initiative and changed the way we would enjoy listening to our favorite artists forever.
iTunes certainly had many flaws, but the music industry didn’t care. Now there was a way for the generation who believed that music was free to start paying again for the music. It was not just music that benefited from the higher-speed internet connections. The gambling and gaming industries also saw the potential. Companies like Epic Games and Casino 777 enjoyed the digital revolution, with profits increasing overnight. Artists and record labels were again getting paid for their hard work. Apple may have been at the helm of this revival in the way we listened and paid for music. A new platform was on the horizon that would ultimately lead to Apple’s dominance and eventual failure, Spotify.
The Introduction of On-Demand Streaming
Spotify was developed by Swedish entrepreneurs Daniel Ek and Martin Lorentzon in 2006 and immediately changed the way consumers played and paid for music. Apple’s model of paying for each album and song was deemed history. Spotify’s platform is a reasonably priced monthly-based subscription for a small fee customers could access a vast music library that even Apple could not compete with.
In 2010 streaming music accounted for 7% of all music played in homes, by the end of 2020, a massive increase led by Spotify accounted for 83% of all music played. The music industry was enjoying a revival with five straight years of growth, seeing profits double in just over six years. Spotify was now seen as an affordable alternative to pirating music.
What’s Next For The Streaming Giant?
Being the world’s number one streaming service does not mean you can relax. Spotify is ever evolving and intends to keep its spot and retain the more than one billion subscribers using its platform. The digital devices that can download Spotify have been at the forefront of the company’s vision. Smartwatches, tablets, and mobile phones can now use the app. The music giant is also keen to sign more and more artists and their labels to increase the vast library that they already have.
With a continued passion for music, Spotify certainly looks set to continue with its dominance of the audio streaming industry.