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Guest Post by Nick Susi, creative strategist in music & media on Rethink MusicEntering 2017, a popular topic of conversation has been focused on streaming’s impact on the music industry. It wasn’t long ago that the industry and media coverage of streaming had a widely negative connotation wrapped around it. 2014 ended in Taylor Swift’s stand against Spotify’s royalty payments. 2015 ended in David Lowery’s $150 million class action lawsuit against Spotify. Here we are only a year or so later and the conversation surrounding streaming has shifted to a largely positive outlook. Streaming has now driven a favorable increase in global recorded revenues, with Spotify and Apple combined driving $7 billion with over 60 million subscribers.Although attitudes toward streaming have been increasingly positive, the era of streaming is still largely nascent. The long-term impact is entirely unknown.How Engaged Are Streamers Anyway?There are a number of factors that make it difficult to estimate per-stream rates. Varied rates by country, paid subscriber rates vs unpaid subscriber rates, and so on. There are reports that have been released in 2016 providing estimates, with Spotify’s worldwide average being roughly $0.006-0.0084 (~$6,000-8,400 per million streams) and Apple Music’s being roughly $0.005643 (~$5,643 per million streams).I have been asking myself though, what is the actual long-term value to the artist for garnering these millions of streams on an individual song? What is the likelihood of replicating the streaming success of one artist’s song into their next release? I began tracking and monitoring a few releases over the course of 2016 through Spotify’s Fan Insights. I started to notice that in many cases, the number of streams that an artist was receiving in a given month, that that number was nearly the same number of streams that the artist was receiving within playlists in the same month. Meaning, the user experience of listening to that artist was almost always within a streaming platform’s major playlist, where that artist was only 1 of 20 to 100+ other artists.This user interaction with the artist is a passive impression, wherein the user has chosen to engage with a playlist’s purpose and context, like New Music Friday or Release Radar for discovery, or Cardio for the gym, more so than the direct intent to engage with a particular artist. And that the conversion rate of a user taking a further step towards a meaningful engagement with that artist, such as venturing outside that playlist to see who the artist is and listening to the rest of their catalogue, was incredibly low.This is all to say that when the user’s primary interaction with a given artist is only within a playlist, even if that user has chosen to save or add that artist to their own playlist, there is no identity building for that artist. Who they are, what they look like, what their story is, and so on. Will Bloomfield, manager of One Direction, recently supported this notion stating, “Our greatest challenge is breaking artists […] You’re not even in the artist’s eco-systems anymore. You’re in ‘Fresh Hits’ or ‘Spotify Dance’ for example or whatever other playlist you’re listening to. We have to think about how we convert a song in a playlist into the next arena or stadium act.”If the streaming ecosystem is showing trends in user behavior towards the discovery of songs within the purpose and context of a playlist, over strengthening the identity of individual artists, what might the long-term impact be? Is there a disparity growing between the success of an artist versus the success of a song? And how can artists and streaming services better work together to build stronger identity into the streaming ecosystem, interface and user experience?Related articles







