Big Changes: Streaming Money

Big Picture: Quick Thought

Differentiation of streaming models is a good thing.

And here we are – as I had hoped, worked towards and predicted.

Let's take a step back and acknowledge the bigger picture.

At the negotiation table with the Major record labels, the one major point I was able to get consensus and agreement on was the need and incentive to differentiate platform models.

Each platform can and should establish how best to monetize their ‘DNA’ — aka their core audience.

A platform like Amazon with Alexa users will have a different mix of listenership than a SoundCloud, Apple or Spotify. In this respect, the value of each platform already differs behaviorally and so should how they generate money for artists.

Why pay out differently? There is a win-win in economic diversity, especially within the development of the arts.

The eventual outcome — Artists and their partners will have a choice of where to put their focus and attention across existing platforms.

New platforms will shape and launch to meet the demand of fragmenting needs.

Diversification will be measured, competitive (for platforms) and outcome driven (maybe you don't need to have your music everywhere.)

However predictive services, especially ones that have built a business that relies on estimating streaming royalties, will have a difficult time with this necessary state of affairs.

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