Why Gen Z’s music habits could reshape the industry
Gen Z is engaging with music differently than previous generations, and that could mean big changes for artists and the music business.
A shift in listening
We have already established that Gen Z are “rewriting how audiences engage with content”, which includes how they interact and discover music. Now, MIDiA research shows they’re not embracing streaming in the same way as other age groups, according to Music 3.0. Streaming growth is actually slower between those aged 16 to 19 compared to other ages, hinting at a shift in how the youngest audiences connect with music.
So, if they’re not overly interested in streaming, how does Gen Z listen to music?
How Gen Z is engaging with music
Social media first
Instead of discovering songs through streaming services, Gen Z typically finds tracks from short-form content on TikTok, Instagram Reels, and beyond. This is something that TikTok was eager to express in its recent campaign spotlighting its role in driving music discovery.
Living by the algorithm
Whether on TikTok or Spotify, algorithms have become the new gatekeepers. Gen Z are increasingly happy to let platforms serve up “more of what they like,” rather than actively searching for it themselves.
Passive listening
Music often takes the backseat for Gen Z. Studying, gaming, or scrolling all involves some form of background music. This shift towards music as a backdrop, rather than a focal point of fandom, changes how deeply audiences connect with artists.
Nostalgia rules
From Connie Francis’s “Pretty Little Baby” to Fleetwood Mac, older tracks often go viral on TikTok, driving streams of back catalogues. In fact, a 2021 Dolby study revealed that nostalgia is Gen Z’s most popular genre.
A return to physical
Streaming may dominate, but Gen Z is also picking up vinyl, cassettes, and CDs. For many, it’s about owning physical media rather than simply streaming it.
What this means for the industry
Music 3.0 reminds us that our music tastes are largely influenced between the ages of 12 and 24. That means that the way Gen Z listens now could define their habits for life. For the music industry, that represents both an opportunity and a challenge as Gen Z starts earning the money spent in the industry.
The risks
- Fewer superfans: With passive, algorithm-driven discovery, fans simply aren’t building the same deep connections with the music they listen to. That’s tough news for artists hoping to grow a loyal base of superfans that will support an artist’s career through thick and thin.
- Less opportunities for new artists: If nostalgia continues to thrive, new artists may struggle to break through, despite social media’s ability to make tracks go viral.
- Slower streaming growth: If Gen Z isn’t buying into streaming subscriptions, streaming’s growth could stall more than it already is. This could be a problem for the industry unless developing countries start subscribing.
The upsides
- Catalog goldmine: The nostalgia train can benefit labels and rights holders who have invested in older music catalogs. These catalogs will become more profitable than ever for owners and could mean more royalties paid to the artists.
- Physical sales = more profits: Vinyl and CDs offer high profit margins. That means more revenue potential for artists, outside of just streaming royalties.
- Live music thrives: Despite more passive listening, Gen Z is still spending on live music experiences. They’re the biggest spenders on festivals, and Gen Z women in the US are attending more concerts than men. For artists, live performances remain a powerful way to boost your career and increase revenue opportunities.
The takeaway
Gen Z’s listening habits may look different, being more passive, nostalgic, and algorithm-driven. These modern listening habits help spark social media trends, propel careers, and rack up streaming numbers, but they could also have long-lasting effects on the music industry.
Want to dive deeper into Gen Z audiences? Check out our blog below and start engaging Gen Z today: