{"id":101529,"date":"2024-10-16T14:00:00","date_gmt":"2024-10-16T13:00:00","guid":{"rendered":"https:\/\/routenote.com\/blog\/?p=101529"},"modified":"2024-10-16T11:52:34","modified_gmt":"2024-10-16T10:52:34","slug":"music-industry-bifurcation-midia-conversation","status":"publish","type":"post","link":"https:\/\/routenote.com\/blog\/music-industry-bifurcation-midia-conversation\/","title":{"rendered":"What does bifurcation of the music industry mean for the future of independent artists?"},"content":{"rendered":"\n<h2 style=\"user-select: auto;\"><span style=\"color: #3366ff; user-select: auto;\">We caught up with Tatiana Cirisano, music analyst at MIDiA Research, to discuss the business and cultural split in the industry, and what that means for independent artists.\n<\/span><\/h2>\n\n\n\n<p>The music industry is in a constant state of evolution, and for independent artists, understanding where it\u2019s heading is critical. As digital platforms continue to shape how music is consumed, distributed, and monetised, it\u2019s more important than ever to anticipate the opportunities and challenges ahead.<\/p>\n\n\n\n<p>We spoke with one of <a href=\"https:\/\/www.midiaresearch.com\/\">MIDiA<\/a>\u2019s music analysts and consultants, Tatiana Cirisano, to get her insights into the state of the industry, as well as her thoughts on how artists can navigate it.<\/p>\n\n\n\n<h3>Bifurcation of the industry<\/h3>\n\n\n\n<p>A clear divide between two powerful forces has been marked: traditional digital streaming platforms (DSPs) like Spotify and Apple Music, and the rising dominance of social media platforms like YouTube, TikTok, and Instagram. This <a href=\"https:\/\/www.midiaresearch.com\/blog\/q2-2024-music-market-metrics-bifurcation-is-here\">bifurcation<\/a> presents both challenges and opportunities for independent musicians. While streaming platforms remain the go-to for music consumption, their rigid structures and limited remuneration options leave many artists frustrated. On the other hand, social platforms offer a direct connection with fans, allowing for engagement, visibility, and creativity, but with even less predictable income.<\/p>\n\n\n\n<p>This split raises an important question for independent artists: How can they best navigate this evolving landscape to build a sustainable career? By understanding the strengths and limitations of both streaming services and social media, musicians can better position themselves to thrive in a rapidly changing industry.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3>The role of digital streaming platforms (DSPs)<\/h3>\n\n\n\n<p>As mentioned above, DSPs are one prong of this bifurcation fork. They\u2019ve revolutionised the way music is distributed and consumed, but have also thrown up some problems for both creators and consumers. Monetisation is a much-discussed and debated issue when it comes to DSPs, with Tatiana observing, \u201cMany artists are now growing kind of disillusioned by streaming. They&#8217;re realising that the vast majority simply will never have a big enough audience on streaming to earn meaningful income there.\u201d<br \/><br \/>Tatiana pointed out early in our conversation that the bifurcation of the industry is \u201ccoming from both sides of the supply and demand equation.\u201d Trends show consumers increasingly prefer a more interactive relationship with the artists they listen to. \u201cThe new generations of consumers don&#8217;t just want to passively listen to the music or even other types of entertainment that they&#8217;re fans of, they really want to participate.\u201d\u00a0<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3>The social media imperative<\/h3>\n\n\n\n<p>In contrast to DSPs, social media platforms like TikTok, Instagram, and YouTube provide artists with a way to connect directly with their audience. For independent musicians, this ability to engage with fans, share personal stories, and create communities has proven invaluable. <br \/><br \/>Tatiana mentioned that we\u2019re starting to see a new generation of artists that view their careers as \u201csocial first\u201d, with some artists releasing music directly to social and UGC (user-generated content)\u00a0 platforms over DSPs. Cementing this shift, data from MIDiA\u2019s annual <a href=\"https:\/\/www.midiaresearch.com\/reports\/music-creator-survey-recalibration\">Creator Survey<\/a> revealed that around 7 million artists are self-releasing independently to streaming platforms, whereas approximately 45 million artists are uploading to UGC platforms. While it\u2019s unsurprising the UGC segment is larger &#8211; more people casually release music as a hobby on social media &#8211; the point of interest for MIDiA is \u201cnot only how much bigger that segment is, but also the growth rate and how it&#8217;s growing so much faster.\u201d<\/p>\n\n\n\n<p>As to why artists are so keen to release music on social, Tatiana shared that \u201cover a third said it&#8217;s because they prefer to release music in spaces where they can directly interact with their fans.\u201d With fans increasingly seeking connection with artists, UGC platforms offer not only exposure for artists, but also an opportunity to cultivate a dedicated fanbase without the gatekeeping associated with traditional streaming.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3>Monetisation challenges and the creator economy<\/h3>\n\n\n\n<p>Earning a decent income as an independent artist has continued to prove challenging, thanks to broken DSP pay-out models and limited monetisation opportunities on social media platforms. While music streaming is working for companies, it doesn\u2019t serve individuals well financially. This, Tatiana stated, is what is \u201cdriving [artists] to social.\u201d <br \/><br \/>While social media is essential for artists to reach fans, it&#8217;s difficult to monetise music directly on these platforms, as artists are \u201ccompeting with all sorts of other things that aren\u2019t music\u201d and primarily rely on licensing. A potential solution could be developing a platform that combines the strengths of both social and streaming &#8211; &#8220;where you can listen to music, but fandom is also monetised.&#8221; However, aligning the goals of streaming and social platforms remains challenging, and existing platforms would need to &#8220;evolve significantly&#8221; to make this possible.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3>Niche vs mainstream<\/h3>\n\n\n\n<p>Beyond the technological and business aspects, cultural shifts are also playing a significant role in shaping the future of the music industry. There\u2019s a growing trend towards <a href=\"https:\/\/routenote.com\/blog\/how-to-leverage-your-niche-as-an-independent-artist\/\">niche<\/a> music scenes, with listeners increasingly seeking out unique, authentic voices. Mainstream artists, like legacy superstars with large teams, continue to drive &#8220;massive profits,&#8221; while niche artists find success by focusing on smaller, more dedicated audiences.<br \/><br \/>The &#8220;smaller artists are finding their own ways to monetise fandom and community&#8221; outside of traditional methods, capitalising on this growing separation in the industry. This divergence is evident in streaming metrics and how different artists approach monetising their fanbases.<br \/><br \/>For niche artists, building strong, loyal communities is key, allowing them to connect deeply with their fans and succeed in ways that differ from the mainstream model. Both paths offer opportunities, but success comes from understanding where you fit best.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h3>How to navigate the modern industry as an independent artist<\/h3>\n\n\n\n<p>To succeed as an independent artist in today\u2019s bifurcating music industry, it\u2019s essential to be strategic about where you focus your efforts &#8211; whether that\u2019s on streaming platforms (DSPs) or social media. While &#8220;[we&#8217;re] seeing this slowdown in engagement with streaming platforms, there&#8217;s the corresponding increase with social&#8221;, as data suggests in the <a href=\"https:\/\/www.midiaresearch.com\/reports\/q2-2024-music-metrics-bifurcation-is-here\">Q2 2024 music metrics report<\/a>. <br \/><br \/>This shift means artists need to understand where their strengths lie. &#8220;More and more the artists that find success are the ones that figure out sort of what their niche is, what platform or platforms they really belong on and where their fans are and kind of double down on that rather than trying to be everywhere.&#8221;<\/p>\n\n\n\n<p>However, social platforms come with their own challenges. &#8220;Social success is only ever ephemeral and there&#8217;s not yet a great way to, you know, monetise your social presence.&#8221; Understanding the limitations of each platform &#8211; such as high engagement but low monetisation opportunities &#8211; is crucial. Despite these challenges, &#8220;the most important for artists today is building deep connections&#8221; with their audience, and should be every artist&#8217;s &#8220;North star to move towards&#8221;.<\/p>\n\n\n\n<p>Ultimately, it\u2019s not about choosing one side over the other. Artists need to adapt to the evolving landscape and &#8220;be aware of these shifts in how people are engaging with music and use that to your advantage.&#8221; Finding the right balance between engagement, monetisation, and longevity is vital for navigating the industry\u2019s future.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/routenote.com\/blog\/engaging-your-fans-how-to-build-strong-artist-fan-connections\/\"><strong>If you need some inspiration and tips on building strong connections with your audience, take a look at this helpful blog.<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We caught up with Tatiana Cirisano, music analyst at MIDiA Research, to discuss the business and cultural split in the industry, and what that means for independent artists. The music industry is in a constant state of evolution, and for independent artists, understanding where it\u2019s heading is critical. As digital platforms continue to shape how music is consumed, distributed, and monetised, it\u2019s more important than ever to anticipate the opportunities and challenges ahead. We spoke with one of MIDiA\u2019s music analysts and consultants, Tatiana Cirisano, to get her insights into the state of the industry, as well as her thoughts&#8230;<\/p>\n","protected":false},"author":27,"featured_media":101531,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4334,11109],"tags":[11576,19876],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v18.4.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What does bifurcation of the music industry mean for the future of independent artists? - RouteNote Blog<\/title>\n<meta name=\"description\" content=\"Find out what MIDiA says about the bifurcation of the music industry, and how independent artists can best navigate the changes.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/routenote.com\/blog\/music-industry-bifurcation-midia-conversation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What does bifurcation of the music industry mean for the future of independent artists? - RouteNote Blog\" \/>\n<meta property=\"og:description\" content=\"Find out what MIDiA says about the bifurcation of the music industry, and how independent artists can best navigate the changes.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/routenote.com\/blog\/music-industry-bifurcation-midia-conversation\/\" \/>\n<meta property=\"og:site_name\" content=\"RouteNote Blog\" \/>\n<meta property=\"article:published_time\" content=\"2024-10-16T13:00:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-10-16T10:52:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/routenote.com\/blog\/wp-content\/uploads\/2024\/10\/pexels-anthonyshkraba-production-8041021.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"6000\" \/>\n\t<meta property=\"og:image:height\" content=\"4000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Johanna Campbell\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/routenote.com\/blog\/#organization\",\"name\":\"RouteNote\",\"url\":\"https:\/\/routenote.com\/blog\/\",\"sameAs\":[],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/routenote.com\/blog\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/routenote.com\/blog\/wp-content\/uploads\/2020\/11\/routenote-logo.jpg\",\"contentUrl\":\"https:\/\/routenote.com\/blog\/wp-content\/uploads\/2020\/11\/routenote-logo.jpg\",\"width\":1000,\"height\":1000,\"caption\":\"RouteNote\"},\"image\":{\"@id\":\"https:\/\/routenote.com\/blog\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/routenote.com\/blog\/#website\",\"url\":\"https:\/\/routenote.com\/blog\/\",\"name\":\"RouteNote Blog\",\"description\":\"The World of Digital Music - Distribution - Stores and Free Music\",\"publisher\":{\"@id\":\"https:\/\/routenote.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/routenote.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/routenote.com\/blog\/music-industry-bifurcation-midia-conversation\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/routenote.com\/blog\/wp-content\/uploads\/2024\/10\/pexels-anthonyshkraba-production-8041021.jpg\",\"contentUrl\":\"https:\/\/routenote.com\/blog\/wp-content\/uploads\/2024\/10\/pexels-anthonyshkraba-production-8041021.jpg\",\"width\":6000,\"height\":4000},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/routenote.com\/blog\/music-industry-bifurcation-midia-conversation\/#webpage\",\"url\":\"https:\/\/routenote.com\/blog\/music-industry-bifurcation-midia-conversation\/\",\"name\":\"What does bifurcation of the music industry mean for the future of independent artists? 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