June 6, 2012 at 2:20 pm

How Streaming Music Will Change Culture… for the Better

streaming music will change culture for the better

Forget, for the moment, about how much Spotify pays out to artists.

Focus instead on the nature of those payouts.

In the olden days (i.e. 20 years ago), recording artists had to convince you to fall for their music once — just long enough to buy a CD. Since the inception of pop music as a physical format, this need to impress the music buyer for a short length of time gave record labels a big incentive to look for one-hit-wonders capable of moving product quickly. (It also meant I used to walk home with lots of terrible music I never listened to again.) Granted, labels often put considerable effort into grooming those artists for a full career, because it’s easier to sell music when fans already like the people making it. But each time music was released, the purchases only had to happen once.

The rise of the iPod and iTunes made it harder for labels to pack long-playing albums with subpar “filler” tracks. It also made it easier for music fans to fall for a hit single for the low price of 99 cents, arguably exacerbating the tendency of artists to impress a fan for only long enough for them to click “buy.”

That landscape is changing.

Recorded music and the formats that deliver it have always influenced each other profoundly. Pop songs tend to be three minutes long because five decades ago, that’s how much music fit on one side of a vinyl single. The compact disc is said to be 74 minutes long to handle longer operas and Beethoven’s 9th Symphony. MTV made recording artists get more adventurous haircuts. The list goes on.

As more of us switch to streaming our tunes from online services with millions of tracks (Spotify, YouTube, Pandora, MOG, iHeartRadio, Rdio, Rhapsody, etc.), music’s format is set to have another impact on content and culture — especially as today’s younger music fans, who know music as an online thing, grow up and start having less time to track down music for free than they do money to spend on subscriptions.

Some would say this is happening just in time. Neil Young claims digital music sounds bad, while none other than Gene Simmons of Kiss and Tommy Lee of Mötley Crüe think pop music is rotten to the core. They are far from the only ones lamenting that hits are crafted in laboratories for an audience that data shows changes the channel after seven seconds unless a hook grabs their ear. Even hardcore indie music fans who read Pitchfork discard yesterday’s buzz bands faster than a bath salts addict… nevermind.

What matters here is that the same digital technologies derided by music purists contain the solution to what might be called music’s “quality problem.” It’s no longer enough to convince fans to buy a disc once; instead, artists and labels have to turn them into lifelong fans. The Beatles succeeded in doing that for generations. It eluded Milli Vanilli, another erstwhile chart-topper.

It is perhaps the height of irony. “Aren’t those the same services that rip off artists by paying a fraction of a cent per play as opposed to doling out 70 cents per song purchase the way iTunes does,” you might ask, “or paying even more per disc, the way those disappearing record stores do?”

Yes. This new phase of music consumption — represented by services that let you listen for free, or for $5, or $10 per month, or customizable internet radio stations that also pay out on a per-song, per-listener basis — is just what music fans who are sick of one-hit wonders and flashy pop hits need. By paying out only when people actually listen instead of suckering fans into buying something only to leave it on the shelf, Spotify, MOG, Rdio, Rhapsody, and other on-demand unlimited music services build an incentive into the music business to create works of lasting value.

When I mentioned this idea at a SXSW panel I moderated in March, panelists including MOG CEO David Hyman and Turntable.fm creator Billy Chasen agreed that while we may not have seen this effect in action yet, it is real. The economics are there for an emphasis on long-lasting quality in music — perhaps even a return to the “golden age” when labels used to spend years or decades developing an artist instead of releasing whatever they think will sell that week.

A rational way for music-makers to respond to these new economics is not by complaining or withholding their music from these services and therefore the future, but by making stuff we might want to play for the rest of our lives. For anyone who loves music, that should come as welcome news.

“The sales cycle of [a] record is anywhere from four to 12 weeks in most typical cases,” Spotify CEO Daniek Ek told Evolver.fm, echoing that sentiment. “With Spotify, we keep seeing the effect up to 25, 35 [weeks], or even a year… And every time someone plays a song, we pay the music industry.”

Sales of recorded music have declined precipitously in the past ten years. There’s truth to the idea that the money is falling out of music — and with it, the capacity of artists to take a year off from touring to craft an album with a highly-paid producer. But in the battle over what money there is left, only those artists who convince lots of people to listen to their music over long periods of time — the way the Beatles did — will come out ahead.

So the next time a curmudgeon, Luddite, or lamenter-of-those-goddamn-kids-today complains about the sorry state of music, please, tell them to calm down. Music is a business. And now, for perhaps the first time ever, its economics favor long-term quality over a flashy first impression.

Photo courtesy of Flickr/AJ Shuster

  • John McCready

    Not sure I agree with the writers conclusions, but for sure the days of a record lable spending $1,000,000 and allowing the artists a year to create master works like Fleetwood Mac’s RUMOUR are over.

  • Yup

    Ahhh, yes, the Peter Pan of digital BS strikes again! Funny how Elliot doesn’t talk much about how artists flat out din’t get PAID by many streaming services esp indie artists! Ohhh, but tell me again how great streaming is?

  • http://twitter.com/coryallenstaats Cory Allen Staats

    Sure. I like listening to Spotify. Lot’s of access. Nice intuitive UI. I don’t even mind the commercials.

    I’m sure other’s data could be different. But, based on my numbers it takes 103 people to listen to a song before it equals the $.70 that itunes would pass along.

    Now, I’ve had my current itunes library for over 4 years. The most played track in my library is at 143 times played. And that is a track that I have in my “sleeping” playlist which I put on to fall asleep to.

    I understand that if the MASSES like a song and stream it collectively, the payment is focused on that singular “good” song. But, does it make sense that I can enjoy my favorite song for FREE on Spotify for potentially 3+ years before the artist (or label) is compensated the “fair-market-value” that has been effectively set in stone by iTunes?

    I think the business model works for consumers. But, the compensation is not sustainable.

  • Derek

    The sentiments here are sound…there hasn’t been this much motivation for artists to create truly great music since the 1970s.  The need to create a great ‘career’ and not simply a great ‘album’ or even ‘single’ is good for music lovers.  The business side, however, needs to catch up to the technology.  The underlying problem still lies with the fact that it’s so terribly easy to find free music.  YouTube has it.  Torrent sites have it.  When paying for music feels free AND is easier to access than alternative (illegal) methods, people will undoubtedly turn to this legitimate service.  If people could spend 10 minutes online and find a grocery store that gave away their food for free, wouldn’t everyone shop there?  Would consumers care whether or not the farmer is getting paid well enough to make a living?  Unfortunately, I’m not sure they would…After all, he grows the food himself, he eats for free anyway, right?
    As easy as Spotify’s service is, they don’t have enough paying subscribers to allow them to pay artists legitimate rates without Spotify themselves going out of business.  You can’t really blame a company for trying to keep their doors open.  They’ve pretty much hit the ‘feel’ of free music on the head (especially when that $10 is pulled directly from my checking account)…but why agree to have that $10 taken out when it’s still just as easy to get what you want for free?  THIS is the problem that must be solved.  When finding free unlimited music online becomes a struggle, people will abandon it.  The alternatives are in place.  But as long as YouTube is still hosting millions of songs uploaded by people who don’t own them being consumed by people who didn’t pay for them (or sites who didn’t pay to host the material that draws them traffic and ad revenue), the ‘new model’ everyone is waiting for cannot exist.

  • G Unit

    the music industry has always been far more complex than what critics have made it out to be. for every 10,000 acts doing the exact same thing, 1 or 2 get a lucky break. right place, right time, right hook, right manager, stars aligned, etc.

    the landscape is changing. but you can’t compare obsolete paradigms to here and now. it’s irrelevant. like the beatles thing…they were extremely talented, but it wasn’t their musical craftsmanship and “ability to convince people to listen to their music” that made them as big as they were. they were the first group to be pushed through the newly forming mass media machine. 

    the “battle over what money there is left” is a byproduct of the glorification of the piracy of music, facilitated by the new wave of tech companies (ie Spotify, YouTube, etc.) who are providing the platforms for its exploitation, shielded by extensive misinformation campaigns and other forms of highly-funded lobbying.

    anyway my question to you is, how exactly is streaming going to change culture for the better? you never really answer that question clearly, nor do you provide a framework or reference for attempting to answer it (ie how would you define culture). 

    this is an article filled with lots of words but nothing more than tangled references, popular spin doctoring, and shortsighted, biased opinions.

  • Jp

    I’ve read dozens of these types of articles and it all sounds like you guys are spinning your wheels in the mud.

  • http://twitter.com/Vesheccrumbs Nathan Veshecco

    I ended up here after reading Eliot’s comment on the recent CNN article. Now I have even more to be disappointed about.

    First off, the stances of these articles are always essentially “It’s the wave of the future and the technology must be respected, and musicians deserve to be punished for sucking.” Is it also the wave of the future to be lazy to the tune of “[Owning music] is a lot of work”? That statement makes the “on the go” generation look bad, and that generation includes a lot of good people with far better reasons (like being broke) for not buying music.

    I’m so tired of those obsessed with technology trying to make people feel bad for being ambivalent about it. There’s a genuine thread of alienation and unkindness in the “stream everything for free” world, and anyone who denies it is just shutting out the empathy we’re all equipped to access. It’s not there in everyone, because owning music just doesn’t rank up there with food, shelter and clothes. But it’s ALWAYS there in these sorts of articles, where a tech writer has one mission: to aggressively defend the right to be unquestionably forward-thinking.

    If people don’t want to own albums anymore, that’s fine. If unlimited access is a major priority, that’s fine. And if your life is all about thinking about what’s coming next and how much better the world is getting with every technological advancement, that’s also fine.

    But stop writing mean, condescending articles like this or album buyers like myself will just rest on this psychological conclusion: That when you know something you love to do is hurting people, you’ll show up on the defensive about it before anyone has said a word. We see you, tech folks, and we know that deep down (and maybe only subconsciously) you know how alienated our world has become. And you know that it isn’t working. And you know that this article has a shitty attitude.

  • http://twitter.com/Vesheccrumbs Nathan Veshecco

    We love you, Neil Young.

  • jkjgkj

    hi

  • http://www.vslevin.com/ Vince

    Seriously? Take it easy, there was nothing in this article to get so worked up about.

  • jazzgirl

    Thank you!

  • http://twitter.com/iOSMusician iOS Musician Blog

    Spotify also just makes sense as a way to contribute to artists efforts in general- why would you pay 99 cents for a song wants to listen to it as many times you want- what if you want to listen to a song only once? It just makes sense for the artist be paid per play

    Yes, yes, artists have shown significantly less revenue from Spotify as opposed to other digital distribution services- but, as Spotify and other online streaming services get larger Numbers of customer artist revenue would (presumably) go up…