Music: An industry transformed by technology.
Technological development in the present has undoubtedly revolutionalised the way we create and consume music. From music production software and hardware becoming ubiquitously advanced to online streaming services such as Napster and Spotify bringing about the democratisation of the music industry and the subsequent demise of physically distributed recorded music; we are in an era of immense creative potential. This rapid transition from offline to online services has majorly accentuated opportunities for both artists and consumers, yet it would be ignorant to disregard the plurality of associated challenges that come with.
Music production: The introduction of Digital Audio Workstation (DAW)
Perhaps one of the most drastic changes in the music industry in the digital age is the early development of music production software. Arising in the 1980s, Digital Audio Workstation (DAW) software such as Apple’s Logic Pro has provided equal opportunity for musicians of all abilities to write, record and produce their own songs with near-infinite control. Such software has lowered the entry barriers to extremely complex music and can be made responsible for the globalisation of the music industry. Artists from around the world are now able to collaborate simultaneously, with millions of sounds, effects and instruments previously untouched, available at the click of a button.
Besides the countless creative opportunities this technology has given rise to, the industry has seen substantial reductions in the cost of producing music in general. The implementation of Apple’s free, entry-level DAW, GarageBand, in 2004 played a fundamental role in promoting a financially viable way to produce music, marking a major shift in the landscape of music software.
Now, the democratised access to cheaper modern recording technologies has made DAW-based studios the new studio paradigm. Home studios and self-producing artists have unlimited access to complex audio processing and editing programmes, previously limited to the most sophisticated audio equipment featured in the most expensive recording studios. Today, the cost of modern recording equipment that is on par with the best commercial recording studios in the 1980s, is roughly a 10th of the price.
Music distribution: ‘Label-less records’ and digital music streaming
It is undeniable that technological advancements have had a major beneficial impact on music production through the likes of DAW and Musical Instrument Digital Interface (MIDI), ultimately breaking creative boundaries, whilst making the process quicker and cheaper. But, the story doesn’t stop there. Arguably just as important as music production in a contemporary setting is music distribution, and it is said that technology has also had a transformative impact on the way and scale musicians can showcase their finalised masterpiece in hopes of becoming the next Kanye West (Even if they are a self-proclaimed SoundCloud rapper!).
Looking back 10–15 years, there was an established gap between music producers and consumers. Music production and music distribution were seen as two, separate binary professions where almost the entirety of recording, distribution and promotion was left to large corporate record labels. Very rarely would you see artists ‘making it big’ in the music scene without the financial aid and social influence of such labels. And this royalty comes at a cost. In the early 2000s, it was common to see record labels pocket up to 80% of retail revenue from physically distributed records such as Vinyl and Compact Disk (CD), leaving artists with very little to show for their work. Whilst this seems harsh on the artists financially, the dynamic heavily contributed to per capita GDP and industry revenue, with 95.5% of the music industry’s revenue coming from CD sales in 2002.
Today, the vast majority of artists no longer see any kind of “record deal” as an integral part of their business plan at all. The introduction of DAW and MIDI software in 1983 bypassed the traditional role of the commercial studio, and then, in the 1990s came the industry’s next biggest technological revolution; digital streaming. Sites such as Napster, Spotify and Deezer immediately became the default method of legally distributing music, providing an affordable, rapid, and effective way of getting your voice heard on an international scale. The service opened opportunities for emerging artists who might otherwise never have gotten the exposure they deserve. With an uproar of distribution services available online, the internet had become a huge resource and distribution channel for artists, allowing them to individually fulfil the role of record labels in producing ‘label-less records’.
The stabilisation of music streaming services not only made production more efficient but sparked a rise in general music consumption also. A study performed by Hannes Datta and his team saw a 50% increase in consumption just half a year after adopting Spotify. Whilst technological advances have allowed increased consumption at a lower price, the price to acquire music has also drastically decreased. In 2020, 83% of the US music industry’s revenue came from Spotify and associated streaming services. On the contrary, just 10% of the industry’s revenue came from physical sales. Consequently, many record labels today are financially struggling as physical sales remain at the heart of each business model.
However, it is not only record labels that are directly feeling the economic downturn of digital streaming, but the artists themselves. According to one Spotify company report, average per-stream royalty payments from the company stand between $0.006 and $0.0084. Back in the era of physically distributed recorded music, artists would receive payment of 10–15% of the suggested album retail price from the record label in royalties. The plummeting average income from streaming services has left artists dependent on merchandise, live shows, and tours as their primary income source.
Engagement: Social media and digital marketing
10 years ago, the default route to success in the music industry was to land a spot on popular T.V. radio channels such as MTV or Top of The Pops. For artists, digital marketing was less essential, or even non-existent in some cases. Today, the forever increasing competition to be the ‘next big hit’ has forced artists to find new ways to gain popularity and engagement. Social networking and media services such as Instagram, NTS, Mixmag, and YouTube have become the dominant way of showcasing music and artists internationally. We have now reached a point in marketing that focuses on an artist’s visuals and personality just as much as their music. Especially with recent statistics showing a 35% chance of a song being skipped before it reaches 30 seconds; first impressions and initial visuals can be the making or breaking point of an artist’s career.
Talking points: The future of technology in the music industry
The 21st Century has seen the rapid innovation of digital technologies, disrupting the music business at every level. From software in music production to digital streaming services in music distribution, technologies have revolutionised the way we create and consume music. Going forward, we expect to see social media continue to dominate the engagement aspect of the business. We can also see digital streaming sites becoming record labels themselves, pushing existing record labels and physically distributed music towards extinction. And behind these developments, global consumption of music is predicted to increase perpetually, fuelling the industry. The opportunities technology has created in the music industry are endless, and we are just at the beginning.
