Should Streaming Platforms Focus on New Acts or Deep Catalogue?
So, Spotify's still thinking about doing a Netflix and becoming a fully-fledged original content provider — AKA a record label in its own right — eh? Sounds fantastic. But among the many questions it raises is whether services like Spotify should focus on new talent, or reap the many benefits of established artists. Why is this such a big deal? Because, as Music Business Worldwide recently reported, revenues from older music are increasingly outpacing those from new blockbuster artists.
The reasons for this may be many, but are likely at least partially related to older generations having both more spending power and the desire to pay for the music they grew up with compared to younger generations. But it also resonates very nicely with what we know about how streaming services provide instant access to nostalgia and all its benefits. Given just how good feeling nostalgic is for us, it seems obvious that deep catalogue would retain more value than new content, even for younger listeners.
Which is something Facebook might consider when formulating their strategy for their own music service.
The big problem for streaming the platforms across the board? The major labels control much of that deep catalogue. Get the full story at Music Business Worldwide.
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