The music business in 2020 experienced an unprecedented cacophony of events. Live music businesses tragically shuttered. A virtual performance market emerging. Yet despite it all, music lived on through streaming as it continued to be embraced by nearly every American with an Internet connection, even in the face of a global health crisis and massive economic disruption.
This is not the only 2020 storyline in music, but it is certainly one of the more hopeful: the full-fledged consumer embrace of streaming helped avert a total collapse of the music business. As one analyst put it: “streaming remains resilient,” with “music industry revenues [holding up] relatively well compared to other industries during the COVID-19 pandemic. The growth of digital streaming has allowed consumers to access and enjoy music regardless of social distancing restrictions.” …
The 2020 music streaming service is your record store, jukebox, speaker, FM radio station, mp3 collection, MTV, set of liner notes and smart music friend all wrapped together in one captivating experience. And critically, streaming services allow you to access all of that without leaving your home—a vitally important characteristic over the past year…
More than ever, I have grown to appreciate just how connected successes and failures are. Music’s resilience is impressive but not infallible.
We should be wary of rhetoric that essentially suggests burning the village in order to save it, or of proposals that ignore how the fundamental complexity of the business — including the balance of payouts to different rightsholders — contributes to the current economics for creators. Any honest reckoning of our business must examine what happens to the 69 cents of every dollar that digital music services pay to record companies, music publishers, and PROs.
For all of us who are part of the community supporting this artform that helped sustain us through this challenging year, our posture should be one of finding solutions and forging partnerships. That is ultimately the approach that resuscitated the music business from a decade-long decline, produced the durable foundation that helped sustain our community through this tumultuous time, and is one reason for continued optimism in the new year.
Read the full Music Business Worldwide op-ed from DiMA President & CEO Garrett Levine here