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3/3/2015 How Social Media and Streaming Have Influenced the Music Industry | Socialnomics http://www.socialnomics.net/2013/12/02/how-social-media-and-streaming-have-influenced-the-music-industry/ 1/5 Search this site... Search About Erik Qualman Keynote Speaker Contact How Social Media and Streaming Have Influenced the Music Industry By Jessica Edmondson | December 2, 2013 Talk to anyone over the age of 22, and they’ll bring you back to the dark ages of digital music, when there were only two options for satiating your current music obsessions: a) Drive all the way to the record store and spend way too much on a band’s entire album, even though you only liked two songs, or… b) “When I was a kid, we downloaded music illegally—and we liked it that way!” Sure, that dynamic still exists somewhat today with paid downloadbased stores like iTunes, but more than ever, music fans are turning to ador subscriptionbased streaming services like Pandora and Spotify, which, as of July 2013, boasted over 24 million and 200 million users respectively. That’s big stuff for an industry that was thrown into such disarray in the beginning of the digital revolution, when the entire music world (or at least the corporate side of it) seemed poised to collapse at any given moment. However, the music industry has also been one of the first to benefit from digital disruption, forced (kicking and screaming!) to grapple with these new methods of listening, distribution, connecting and marketing. In fact, perhaps not surprisingly given the peer to peer nature of the now irrelevant Napster, the service that kicked this revolution off, most of these good changes have occurred on social media, which has provided the tools both to increase virality, tighten the community around a band and actually turn a profit (though whether that profit goes to labels or artists is another question). That’s an irony not to be missed: the very same tools that bulldozed the industry’s traditional model are now the venue for its renaissance. How so? It’s all about shortening the distance between the artist, the listener, and all 5,000 of their friends. Let’s take a deeper look at just how social media has and continues to be the key to bringing the music industry into its next phase. Listening is Streaming According to Nielsen, music streaming increased a full 24% from 2012 to 2013, while downloaded sales decreased 4.6%. While downloads have been steadily decreasing on their own, this stat is still somewhat reflective of a broader shift in the listening experience from downloaded to streamed songs. Why are music fans going this way? Streaming combines all the best of radio with all the best of a personalized library kept on a computer or mobile device. No longer do listeners need to make sure they’ve got all of their favorite songs on their laptop before heading to work for the day. Nor is there any need to sit through lengthy ad breaks or poor radio DJ choices, let alone that obnoxious “banter.” Streaming vastly improves the listening experience, making listeners much more likely to engage for longer periods of time and to share their experiences. Streaming Makes Sharing and Discovering Automatic With complete Facebook integration, services like Spotify automatically post what users are listening to right to their feed. This makes it easy for that listener’s friends to listen to the tracks themselves or add them to their

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  • 3/3/2015 How Social Media and Streaming Have Influenced the Music Industry | Socialnomics

    http://www.socialnomics.net/2013/12/02/how-social-media-and-streaming-have-influenced-the-music-industry/ 1/5

    Search this site...   SearchAbout

    Erik  Qualman

    Keynote  Speaker

    Contact

    How Social Media and Streaming Have Influenced the

    Music Industry

    By  Jessica  Edmondson  |  December  2,  2013

    Talk  to  anyone  over  the  age  of  22,  and  they’ll  bring  you  back  to  the  dark  ages  of  digital  music,  when  there  were

    only  two  options  for  satiating  your  current  music  obsessions:  a)  Drive  all  the  way  to  the  record  store  and  spend

    way  too  much  on  a  band’s  entire  album,  even  though  you  only  liked  two  songs,  or…  b)  “When  I  was  a  kid,  we

    downloaded  music  illegally—and  we  liked  it  that  way!”

    Sure,  that  dynamic  still  exists  somewhat  today  with  paid  download-‐based  stores  like  iTunes,  but  more  than

    ever,  music  fans  are  turning  to  ad-‐or  subscription-‐based  streaming  services  like  Pandora  and  Spotify,  which,  as

    of  July  2013,  boasted  over  24  million  and  200  million  users  respectively.

    That’s  big  stuff  for  an  industry  that  was  thrown  into  such  disarray  in  the  beginning  of  the  digital  revolution,

    when  the  entire  music  world  (or  at  least  the  corporate  side  of  it)  seemed  poised  to  collapse  at  any  given

    moment.  However,  the  music  industry  has  also  been  one  of  the  first  to  benefit  from  digital  disruption,  forced(kicking  and  screaming!)  to  grapple  with  these  new  methods  of  listening,  distribution,  connecting  and

    marketing.  In  fact,  perhaps  not  surprisingly  given  the  peer  to  peer  nature  of  the  now  irrelevant  Napster,  the

    service  that  kicked  this  revolution  off,  most  of  these  good  changes  have  occurred  on  social  media,  which  hasprovided  the  tools  both  to  increase  virality,  tighten  the  community  around  a  band  and  actually  turn  a  profit

    (though  whether  that  profit  goes  to  labels  or  artists  is  another  question).

    That’s  an  irony  not  to  be  missed:  the  very  same  tools  that  bulldozed  the  industry’s  traditional  model  are  now

    the  venue  for  its  renaissance.  How  so?  It’s  all  about  shortening  the  distance  between  the  artist,  the  listener,  and

    all  5,000  of  their  friends.  Let’s  take  a  deeper  look  at  just  how  social  media  has  and  continues  to  be  the  key  to

    bringing  the  music  industry  into  its  next  phase.

    Listening  is  Streaming

    According  to  Nielsen,  music  streaming  increased  a  full  24%  from  2012  to  2013,  while  downloaded  sales

    decreased  4.6%.  While  downloads  have  been  steadily  decreasing  on  their  own,  this  stat  is  still  somewhatreflective  of  a  broader  shift  in  the  listening  experience  from  downloaded  to  streamed  songs.

    Why  are  music  fans  going  this  way?  Streaming  combines  all  the  best  of  radio  with  all  the  best  of  a  personalized

    library  kept  on  a  computer  or  mobile  device.  No  longer  do  listeners  need  to  make  sure  they’ve  got  all  of  their

    favorite  songs  on  their  laptop  before  heading  to  work  for  the  day.  Nor  is  there  any  need  to  sit  through  lengthy

    ad  breaks  or  poor  radio  DJ  choices,  let  alone  that  obnoxious  “banter.”  Streaming  vastly  improves  the  listening

    experience,  making  listeners  much  more  likely  to  engage  for  longer  periods  of  time  and  to  share  their

    experiences.

    Streaming  Makes  Sharing  and  Discovering  Automatic

    With  complete  Facebook  integration,  services  like  Spotify  automatically  post  what  users  are  listening  to  right  to

    their  feed.  This  makes  it  easy  for  that  listener’s  friends  to  listen  to  the  tracks  themselves  or  add  them  to  their

  • 3/3/2015 How Social Media and Streaming Have Influenced the Music Industry | Socialnomics

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    playlists.  And  when  users  want  to  make  their  friends  directly  aware  of  a  song  or  playlist  they’ve  curated,  this  issimple  to  do  right  in  Facebook.

    While  Spotify  may  not  be  worth  it  for  big  bands  like  Radiohead,  the  sheer  exposure  available  on  the  platformmakes  the  service  well  worth  it  for  smaller  bands.  After  all,  those  24  million  streamers  are  as  instantly  availableto  brand  new  garage  bands  as  they  are  to  Jay-‐Z—all  the  more  so  when  listeners  click  the  “Discover”  button.

     

    Likewise,  listeners  on  Pandora  discover  new  music  when  they  create  a  station,  as  the  service  uses  its  industry-‐shaping  algorithms  to  play  highly  related  music.  And  premium  users  can  get  the  inside  scoop  on  new  releases,which  makes  them  more  likely  to  advocate  for  new  albums  on  their  social  media  feeds.

    All  of  these  features  on  their  own  can  be  crucial  for  a  band’s  success,  but  they  can  be  all  the  more  so  when  aninfluential  (read:  celebrity)  user  likes  their  work.  This  is  something  the  band  Spirit  Animal  found  out  firsthandwhen  Sean  Parker  of  Napster  fame  added  the  band’s  single,  “The  Black  Jack  White,”  to  his  popular  “HipsterInternational”  playlist.  The  move  greatly  increased  the  band’s  social  media  following,  and,  with  over  450,000plays  and  growing,  they  also  made  a  fair  amount  from  Spotify  itself,  not  to  mention  associated  iTunes  sales.That’s  a  whole  lot  of  buzz  for  a  relatively  unknown  band,  which  in  turn  can  help  both  popularize  them  furtherand  generate  revenue.

    Social  Media  Creates  a  Supportive  Community  for  Bands

    Of  course  broader  social  media  sites  like  Twitter  and  Facebook  aren’t  just  the  host  to  services  like  Spotify—they’re  pretty  crucial  for  creating  buzz  in  their  own  right.  But  where  these  sites  are  even  more  important  are  informing  a  tight  community  around  a  band.  On  Facebook,  fans  can  create  their  own  groups,  where  they  can  postnews  and  engage  in  discussions  about  the  latest  band  news.  Bands  can  create  groups  as  well  to  give  fans  theinside  scoop.

    On  Twitter,  bands  can  create  hashtags  around  upcoming  events  to  keep  their  fans  aware  of  everything  they’vegot  going  on.  And  on  both  of  these  sites  as  well  as  on  the  newly  relaunched,  Justin  Timberlake-‐owned  MySpace,fans  can  engage  directly  with  band  members,  who  can  respond  in  seconds  rather  than  sitting  down  to  write  awhole  letter  in  response  to  fan  mail.  And  you  know  how  the  old  saying  goes:  “A  fan  that  gets  a  tweet  back  is  far

  • 3/3/2015 How Social Media and Streaming Have Influenced the Music Industry | Socialnomics

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    more  likely  to  engage  with  and  become  an  advocate  for  said  musician’s  music.”  Or  something  like  that.

     

    And  who  can  ignore  the  power  of  YouTube?  From  Justin  Bieber  to  Carly  Ray  Jepson,  the  video  platform  has  been

    crucial  not  just  for  discovering  new  talent,  but  also  for  creating  avid  followings  on  artist  channels,  which  in  turn

    increases  exposure  amongst  the  wider  population.  Fans  who  are  a  key  part  of  an  artist’s  initial  success  are

    much  more  likely  to  stick  around,  as  they’re  invested  at  a  deep  level.

    Social  Media  is  Data

    While  exposure  and  revenue  generation  are  key  considerations,  it’s  important  not  to  forget  one  of  the  prime

    benefits  social  media  and  streaming  offers  the  music  industry:  data.  Bands,  band  reps  and  labels  can  now  head

    out  into  the  world  with  proof  of  their  popularity.  Some  bookers  won’t  even  say  “yes”  to  a  performance  unless  a

    certain  number  of  likes  have  been  reached.

    In  fact,  social  media  has  helped  create  so  much  data,  many  bands  need  companies  to  compile,  sort,  and  analyze

    that  data.  This  helps  them  not  only  make  use  of  social  insights  in  their  daily  marketing  and  PR  efforts,  but  also

    to  determine  where  they  should  even  tour.  There’s  no  use,  after  all,  in  using  a  limited  budget  to  visit  a

    destination  advocated  by  an  avid  fan,  only  to  find  a  meager  and  lackluster  audience.

    The  Takeaway

    There’s  no  denying  that  social  media  and  associated  streaming  services  have  changed  the  way  fans  discover  and

    enjoy  music,  as  well  as  how  the  music  industry  discovers,  promotes  and  fosters  both  new  and  old  musicians

    alike.  If  there’s  one  thing  that’s  clear  in  this  new  world,  it’s  that  things  are  changing  rapidly,  and  they’ll  only

    continue  to  do  so.  But  isn’t  that  reflective  of  the  music  industry  at  large?  One  look  at  this  music  timeline,  and  it’s

  • 3/3/2015 How Social Media and Streaming Have Influenced the Music Industry | Socialnomics

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    amazing  the  technology  waited  this  long  to  evolve  alongside  the  legends.

    What  do  you  think  about  social  media  and  music?  Is  it  good  for  the  industry,  bad,  or  a  mixed  bag?  Let  me  knowin  the  comments  below!

     

    Posted  in  Social  Media,  Social  Networks,  Twitter,  YouTube  |  Tagged  Music  Tips,  Musicians,  social  networking,  socialpromotion,  Twitter,  YouTube

     Jessica EdmondsonJessica  Edmondson  is  a  writer  and  content  marketer  from  Distilled,  a  creative  online  marketing  company.  Sheparticularly  fancies  small  business  topics  that  involve  social  media  and  branding.  You  can  follow  her  on  Twitter@jsedmond.

    View  all  posts  published  by  Jessica  Edmondson  »

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    Kristoffer M. Morada · Instructor at Rizal Technological UniversitySocial media and music streaming are one.

    Reply · Like · February 14, 2014 at 3:46am

    Christine Polak · Top Commenter · Portland, OregonI think, in a way. streaming and social media go together. I follow what my friends are

    listening to on spotify and torch music, and they follow me. There are tons of bands I

    wouldn't have known about without facebook, or twitter.

    Reply · Like · December 3, 2013 at 3:43am

    Jessica Edmondson · Works at DistilledExactly! Totally agree with you that social media and streaming go hand in hand. I

    also listen to music that my friends suggest. Spotify does a great job of updating

    your friends' newsfeed with whatever current music you're listening to so they

    can get involved. Thanks for reading!

    Reply · Like · December 3, 2013 at 9:58am

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