aaamusic | On 24, May 2020

The last decade in the music industry was filled with hit tracks punctuated by revolution and clamor in all its sectors. Growth is also part of the last decade with revenues increasing 10% to close 2018 at over $4.6 billion. Streaming services claimed a jaw-dropping three-quarters of this amount. 

Jumping into 2019, things looked to remain on the same path as the previous years. Release dates, A&Rs, major labels still exist, worldwide tours, etc. Of course, multiple aspects in the industry took a hit including retail sales.

The real question is, what will the next decade offer? We consulted our crystal ball and the predictions are in.

1. Blockchain for the Music

It’s not easy for any artist to make money through their music. It’s even harder for a struggling artist trying to make a name for themselves. In some cases, such an artist will go home hungry despite playing on loop on radio stations. 

However, streaming services such as Spotify and Apple Music burst a ray of hope into artists’ pockets. With that said, not all musicians benefit from these streaming services. That’s where blockchain comes into the picture. 

Numerous blockchain-powered solutions wait to hop on at the next stop with all sorts of goodies. You’re looking at automated royalty payments, artist-fan connections, and rewards for fans for listening to music. 

Some of the startups tapping into the power of blockchain include Inmusik – a startup aiming to put money into the pockets of fans and artists by allowing users to choose songs they believe will become hits. 

UjoMusic dives into rights ownership, smart contracts, automated royalty payments, allowing artists to take the wheel when it comes to their music.

2. Artist-fan Relationship

There’s no denying how technology has revolutionized the music industry. Today, a music fan isn’t the one to wait in line to grab a ticket for an upcoming live performance. That fan is also not going to get the latest haircut by their favorite celebrity. 

Of course, the die-hard fans still exist but are scarce and far in-between. Social media is the new form of communication between artists and their fans because it’s free and effective. The “swipe” generation forms the largest chunk of many artists’ fan base, pushing musicians to partner with startups to reach more fans.

For instance, for live music, startups such as Viberate and LiveXLive are go-to options that help artists promote their music and merchandise as well as offer their fans quality live music. 

Artists will also have an opportunity to interact with their fans via crowdfunding platforms such as Weeshing – a blockchain-backed platform that allows fans to become directly involved in projects. The returns on investment, lack of it thereof, will be split. 

3. Bet on the Next Big Hit

Yes, you read that right! Just when you thought betting was done with surprises and boom! You have music betting. The whole concept behind music betting is making successful predictions about the next big thing in the music industry. 

Mymundo is one of the platforms behind this untapped idea. It not only offers fans a chance to bag money through betting but also offers a platform where they can get insider information on what’s fresh in terms of music and artists. Online betting sites across the UK have clearly come a long way in entertainment betting.

Furthermore, the platform allows fans to listen to the latest tracks. In short, this is Spotify backed by blockchain but with a gambling twist. 

Of course, challenges will always present themselves. In this case, popular demand is a real threat to the idea given that artists will make it to number one of music charts due to this aspect. 

4. The Crave for Data

Data. Everybody’s about the numbers and what they mean for them. Artists are also in this conundrum with the last part the hardest to grasp, leading to the rise of data companies aiming to make sense of the numbers. 

Pandora, Apple, and Spotify are already diversifying into data analytics to help artists understand what their audience is all about. However, third-party companies are also creeping up with exciting solutions that give artists insights into demographics, marketing, and touring data. 

A company that offers such data and translate it into dollars that end up in musicians’ pockets has a chance to remain relevant in the industry. This explains why record labels are in a race to bolster their conventional revenue streams by stocking up on programmers and data scientists.

5. Automation in Music-Making

According to Spotify, up to 40,000 new songs knock on its door. While this means fans will have a galaxy of songs to shuffle through, it also means artists won’t have to take out a loan to put out a hit track. Thanks to technology, the entire music-making process is faster, simpler, and cheaper than ever before. 

Take Musical Blockchain, for example. This startup takes user data and based on the analysis, the software will create melodies and sounds. Funky, huh? 

Apple’s Garageband is another tool offering beat-making templates and Old Town by Lil Nas X is a solid testament of how things can get simple. This is not only challenging artists to go beyond their limits, but it’s also testing the game’s character – the traditional beat-making. ‘

Going back to the number of tracks begging for your ears’ attention, your guess is as good as the next fan about the number of songs on Spotify by the close of 2020.

So, What’s Next?

The music industry is yet to experience the full power of technology. Highlighted in this article is just a mere drop in the expansive ocean. Virtual reality and augmented reality, for instance, are yet to reach every household after Post Malone and Billie Eilish, in 2019, partnered with Oculus Venues for a virtual reality show. 

Soundtracking will also experience changes with Netflix already on track to offer its users a chance to “choose their soundtrack.” As you can see, there’s a lot in pandora’s box as far as the music business goes. The question is where will you be when all this erupts?