The current generation and advancement in technology has changed marketing practices as well as the landscape of music consumption. Generation Y and millennial search, play, and consume different music depending on various factors such as availability and preferences (Styven 2007, p. 66). Consumption patterns and habits are more affected by rapid change in technology. Many people have embraced music streaming platforms and trend that is expected to rise continually (Wlomert and Papies 2016, p. 321). Such transformation has brought about substantial impacts on the artists or stakeholders in general and revenue generation (Zaman 2008, p. 108). Streaming music online is fundamentally perceived as renting access instead of purchasing MP3s or albums. Therefore, this section examines existing literature on music streaming and its impacts on the consumer and industry as well.
Music Streaming
Impacts of Music Streaming on the Industry, Artists, and Users
Music streaming is viewed as less influential because it is used by individuals who earn less income. Most youth globally are unemployed since they lack the required experience to hold high positions to allow them also utilise traditional music (Alaxender 2015). The latest developments provides various opportunities for consumers to learn innovative approaches of utilizing the media. According to Brosdahl and Carpenter (2011, p. 553), music sector is transitioning from an ownership to access model where individuals opt not to buy CDs because of different reasons such as lack of conveniences of spotify, clunky when handling, and expensive to purchase. Most scholarly work on the topic concludes that music streaming has both positive and negative impacts to the consumers and artists (Richardson 2014, p. 68). Many benefits associated with the trend has made streaming to be a larger part of the of the music industry. Zaman (2008, p. 110) argue that streaming enhances exponential growth which accounts to nearly a quarter of the entire music sector. The rapid growth in streaming has led to the decline in piracy hence depicting a revaluing of the worth of music by the artist and consumer as well (Meyer, Donohue and Ortiz 2009, p. 23). Independent artists are also applying the method to maximise on live performance to generate more revenue. Unknown artists benefits from the streaming services whereby, they employ these platforms to release and promote their music which consequently heightens exposure to a larger market (Zaman 2008, 109). According to (Wlomert and Papies 2016, p. 115), various transformations in the industry give consumers opportunities of accessing a wide range of music electronically at a reduced cost and on demand. Therefore, the literature collectively acknowledge the critical role of streaming in the music sector.
Despite music streaming changing the approach used by artists to brand, monetize, and reinvesting into the industry, various debates has escalated by trying to defend whether these development are useful or not (Wlomert and Papies 2016, p. 314). Consumers are the most benefactors whereas some artists who are not in position to adopt new technology are disadvantaged (Weijters, Goedertier and Verstreken 2014, p. 543). As more customers embrace subscription based streaming services, songs for particular artists are less played leading to fluctuations in their income.
Effects of Music Streaming on Piracy
Bennett, Maton and Kervin (2008, p. 776) examined the relationship between music streaming and music piracy. They observes that the rate of crimes are ever growing through sharing music with friends, downloading songs for free, and emailing songs to non-authorized consumers but concludes that streaming will be a solution for this problem. Piracy affects the entire people working for the music sector differently. Similarly, Styven (2007, p. 67) assert that piracy is more widespread and its impacts are realized wide more than before. Various stakeholders have hoped that streaming will offer the best ground for combating increasing piracy. File sharing hard significantly new artists who most depend on their work to produce more music (Alaxender 2015). Tremendous growth in technology creates more complexities in preventing piracy (Titlow 2016). However, streaming might not be the only remedy to copyright infringements which justifies the need for further studies on how to combat the challenge.
Growth of Music streaming and its Impacts on Revenue
Music streaming currently plays a fundamental role in promoting revenue generation among the artists and access to quality music on the platforms. Digital music revenues have exceeded physical sales because of the soaring descriptions and change in consumer behaviour. Hard copy sales have declined continually because of transition to streaming services that are supported by the internet (Borja, Dieringer and Daw 2015, p. 72). Basing on the current statistics, the next few years will perhaps experience decline in the sale of hard copies as people transition to music streaming. In addition, music streaming has positive impact on revenue generated by the industry. The reduced price for the music played online has increased consumption hence boosting the overall growth of industry (Meyer et al. 2009, p. 27). According to Weijters et al. (2014, p. 541), growth is realized because of the capability of the music streaming to reduce piracy which eventually help new artists to develop and access a large market share. From consumer’s perspective, music streaming is cost effective and allows access to different same without necessarily moving to various locations whenever a new album is introduced.
According to McGhie, T and Davidson (2015), the continuous change in consumer behavior will perhaps result into more sales for music streaming than purchasing. Presently, streaming has become the major source of revenue in the industry which undoubtedly depicts a shift in the consumer buying behaviour traditional to most recent forms that are supported by innovations (Titlow 2016). Most streaming platforms are most successful because of various factors. One of the most common reason leading to this trend include the ability to align with the changing consumer needs as well as being supported by rapid development in technology. Bolton et al. (2013, p. 250) observe that many consumers who access these services depend on modern technology; therefore, digitalisation favours significantly the music streaming hence culminating to overwhelming success. Despite many problems associated with music streaming, artists have a positive attitude because the approach help in reducing piracy hence resulting to increase in revenue generation (Thomes 2011, p. 114; Bonner and O'Higgins (2010, p. 1344). Consequently, music streaming has impacted substantially on the consumer behaviour as many currently prefer accessing different music online instead of purchasing the traditional albums.
Conclusion
In conclusion, myriad developments in the music industry are expected to continue for an extended period hence it is crucial to embrace these transformations to meet the changing customer needs. The existing literature has explicitly examined the positive and negative effects of music streaming on the artists, customers, and industry at large; however, solutions to the problems associated with this trend. Most of the changes in the sector are directly linked to robust developments in technology hence the need for conducting further research on how to capitalize on the potential opportunities and minimise the challenges. Therefore, this study will rely on the literature to predict changes in the consumer behaviour suggest key measures to embrace to benefit various stakeholders in the sector.
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