COVID-19 has been a shock to the music entertainment economy with usage patterns being transformed.
Some behavior patterns have actually altered for good, generating brand new possibilities, many of which have actually yet to be precisely monetised.
With streaming development slowing and creators feeling short-changed, it’s time to think about what plan B is to ensure the long term future growth of the music and entertainment industries
Here are five areas that we think could collectively become music business’s next growth drivers
Relevant, Personal Experiences
Two huge lockdown winners are mindfulness / meditation apps and internet based physical fitness education.
Songs are often a core part of these however, it is not always accredited.
To date, online streaming services have actually supplied the soundtrack to such tasks with contextual playlists (chill, study, workout). But it is better for the context itself to deliver the songs.
We expect the following couple of years to see areas like online health and fitness eating in to the time that people were previously making use of online streaming. As opposed to bring your own personal songs, the trend is that the context will bring it.
Virtual Events
There is a giant opportunity to turn virtual activities (live streaming, listening sessions, avatar activities) into an important income stream. A freemium design with free, pay to remain, premium and super-premium tiers will enable this fast-growing industry becoming a lot more than a lockdown stop-gap.
Fandom
We consider this a major growth area with the ability to monetise fan support and enthusiam. Tencent Music Entertainment already does a fantastic job in this area with real time streams, digital gift ideas and digital currencies and tokens — there are so many options right here waiting to be tapped.
Creator tools
There is an extremely diverse mixture of resources for music artists, including production, collaboration, sounds, mastering and advertising.
The vast majority of the music artists will spend a great deal more on creator tools than from their musc. The money opportunity is obvious, but there is even more to it than that.
Artist distribution platforms built on top of funnel tools are assisting labels find the next big hit. Music creation tools are actually top of the funnel. Anybody who can establish relationships at that point stand a better chance of forging opportunities and relationships Basically, creator resources will end up part of the music company.
Social music
As an expansion of fandom, the reality that the vast quantity of music-centred social activity on Instagram, Facebook, Snapchat and TikTok hasn’t however already been properly monetised is a gaping hole of possibility.
TikTok will undoubtedly be vital. TikTok is having its ‘Snapchat moment’, trying to determine just what commercial course it takes. If rights holders can establish a completely brand new monetisation framework, after that TikTok may become the greatest single-driver of future income.
Rights holders and designers alike require brand new future income channels to counterbalance the effect of slowing income growth and royalty crises.
Let’s make this next chapter of the industry’s growth about innovation, growth, new opportunities and fresh thinking.
