A Comparative Study of Internet Architecture and Applications of Online Music Streaming Services: The Impact on The Global Music Industry Growth

Author(s):  
Ramy A. Rahimi ◽  
Kyung-Hye Park
2018 ◽  
Vol 14 (1) ◽  
pp. 1-20 ◽  
Author(s):  
Charlie C. Chen ◽  
Steven Leon ◽  
Makoto Nakayama

The proliferation of free on-demand music streaming services (e.g., Spotify) is offsetting the traditional revenue sources (e.g., purchases of downloads or CDs) of the music industry. In order to increase revenue and sustain business, the music industry is directing its efforts toward increasing paid subscriptions by converting free listeners into paying subscribers. However, most companies are struggling with these attempts because they lack a clear understanding of the psychological and social purchase motivations of consumers. This study compares and contrasts the two different phases of Millennial generation consumer behaviors: the alluring phase and the hooking phase. A survey was conducted with 73 paying users and 163 non-paying users of on-demand music streaming services. The authors' data analysis shows two separate behavioral dynamics seen between these groups of users. While social influence and attitude are primary drivers for the non-paying users in the alluring phase, facilitating conditions and communication control capacity play critical roles for the paying users in the hooking phase. These results imply that the music industry should apply different approaches to prospective and current customers of music streaming services.


2017 ◽  
Vol 40 (7) ◽  
pp. 1086-1100 ◽  
Author(s):  
Robert Prey

Raymond Williams once wrote, ‘… there are in fact no masses, but only ways of seeing people as masses’. In an age of personalized media, the word ‘masses’ seems like an anachronism. Nevertheless, if Williams were to study contemporary online platforms, he would no doubt conclude that there are in fact no individuals, but only ways of seeing people as individuals. This article explores this idea by taking a closer look at online music streaming services. It first conducts a comparison of how two leading streaming platforms conceive of the individual music listener. Then, drawing from Gilbert Simondon’s theory of individuation, it demonstrates how ways of seeing the individual work to enact the individual on these platforms. In particular, ways of seeing are heavily influenced by the consumer categories that are defined and demanded by advertisers. This article concludes with an examination of how commercial imperatives shape ‘ways of seeing’ and ‘algorithmic individuation’ on music streaming platforms.


2019 ◽  
Vol 4 (3) ◽  
pp. 264-279
Author(s):  
Fatih PINARBAÅžI

Online music streaming services are one of the important actors in music consumption for today’s consumers. In addition to widespread use of mobile devices, many changes in the patterns of music consumption are witnessed such as the purchase of single tracks instead of albums, listening to music on different platforms, and personalized music consumption options. This study aims to examine the concept of music consumption in Turkey through audio characteristics of popular songs. Top 200 popular song-lists for 6 months period are chosen as sample and audio characteristics provided by Spotify API service regarding 676 unique songs are analyzed. Following descriptive statistics of Turkey Music Market, clustering methodology is employed and three different clusters for songs are concluded. Finally, decision tree methodology is employed to classify the dataset with popularity scores and audio characteristics together, while loudness and energy characteristics are found as significant classifiers.


2020 ◽  
Vol 42 (7-8) ◽  
pp. 1461-1478
Author(s):  
Ruth Towse

The intervention of digital service providers (DSPs) or platforms, such as Spotify Apple Music and Tidal, that supply streamed music has fundamentally altered the operation of copyright management organisations (CMOs) and the way song-writers and recording artists are paid. Platform economics has emerged from the economic analysis of two- and multi-sided markets, offering new insights into the way business is conducted in the digital sphere and is applied here to music streaming services. The business model for music streaming differs from previous arrangements by which the royalty paid to song-writers and performers was a percentage of sales. In the case of streamed music, payment is based on revenues from both subscriptions and ad-based free services. The DSP agrees a rate per stream with the various rights holders that varies according to the deal made with each of the major record labels, with CMOs, with representatives of independent labels and with unsigned artists and song-writers with consequences for artists’ earnings. The article discusses these various strands with a view to understanding royalty payments for streamed music in terms of platform economics, offering some data and information from the Norwegian music industry to give empirical support to the analysis.


Legal Studies ◽  
2021 ◽  
pp. 1-20
Author(s):  
Nick Scharf

Abstract Streaming services now provide the dominant way in which music is distributed and consumed online. Digital rights management (DRM) lies at the heart of this trend and has evolved alongside a movement from copy-based to streaming-based consumption. This shift poses a number of new and unique issues. Music streaming services have changed the nature of the product offered, with musical content becoming de-bundled and reduced to a series of permissions covered by DRM and associated licences, leaving users trapped in a permission-based system. This may create tension with copyright law principles regarding personal ownership and exhaustion of rights in relation to secondary markets, but through analysing relevant US and European case law it can be demonstrated that there is little, if any, legal opportunity for digital secondary markets to emerge. There are also further specific consequences which may affect artists relating to musical diversity and the composition of popular music and, also, consequences regarding the changing nature of the Internet itself. In this context copyright remains centrally important, but only in establishing the initial proprietary rights that enable subsequent DRM and licence-based online exploitation, indicative of a re-establishment of record industry power that is now allied to streaming platforms.


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