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Music Industry in Crisis: A Look at the Challenges and Opportunities in 2023

Increasingly, music is an endeavor like any other. It is not done so much for the pleasure of doing it, but for the possibilities it represents, for what it is, because the path to success seems to be already laid out, because you do not need to know about music to make it and, above all, because of the Most artists repeat from time to time that if they could get where they are, anyone can, because dreams do come true.

The figures show this. According to Luminate, a company that has been analyzing and measuring music, film and television consumption for more than 30 years, this year the total number of on-demand music plays (whether audio or video) in the world increased by 33.7%, going from 5.3 in 2022 to 7.1 trillion in 2023.

A huge figure, encouraging, but not that much. Luminate tracked 184 million songs from all the different platforms in the world and found that during 2023 more than 45 million songs did not get a single play and 79.5 million only had between 0 and 10 plays and just 10 songs surpassed one billion plays. .

Anyone can make music, because they can and because they want to, but music is a good business for very few. The numbers continue: 45.2 million songs had between 11 and 100 plays. 33.7 between 101 and 1000, 23.1 between 1000 and 100,000. Only 1.9 million had between 100,000 and 1 million views and only 380 thousand songs had between 1 and 10 million.

Faced with this reality, Spotify began to take measures and in November of last year announced its new royalty policy. “Starting in early 2024, songs must have reached a threshold of at least 1,000 streams in the past 12 months to be included in the recorded music royalty fund calculation,” the platform announced on its website.

According to the platform, songs that have between 1 and 1,000 annual views generate $0.03 per month, but that money never reaches the person who uploads the content, as it does not meet the minimums or rates to make it worth withdrawing. Of course, those small payments for so many contents that do not exceed 1,000 views, added together, reach almost 40 million dollars a year, “a value that could increase payments to the artists who most depend on streaming royalties,” they say. .

Thus, everyone’s profits will be concentrated on the artists with enough reproductions to be eligible.

Luminate’s report reveals other data. For example, the fastest growing genres in the US market are ‘World’ – which includes almost everything that comes from outside the United States, that is not Latin – ‘Latino’ and ‘Country’. And within Latin, what grew the most was regional Mexican music.

Is the music industry in crisis?

Several companies in the music industry – from record labels to specialized media – have announced layoffs in recent months. According to critic Ted Gioia, the cause of the crisis has to do with the fact that the main record labels are investing enormous sums of money in acquiring catalogs of old songs and the platforms have encouraged passive listening so that people do not even know What artists do you listen to? “The idea situation was to switch listeners to AI-generated tracks owned by the streaming platform, so there was no need to pay royalties,” Gioia wrote. He points out that this plan will be a failure, although he says the worst is still to come.

2024-01-24 01:13:47
#Music #industry #millions #views #songs #reproductions

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