{"id":973588,"date":"2019-11-18T16:19:02","date_gmt":"2019-11-18T23:19:02","guid":{"rendered":"https:\/\/www.rollingstone.com\/?p=914029"},"modified":"2019-11-18T16:19:02","modified_gmt":"2019-11-18T23:19:02","slug":"sure-streamings-transformed-the-music-business-but-whats-next","status":"publish","type":"post","link":"https:\/\/alwaysmountaintime.com\/kfmu\/music-news\/sure-streamings-transformed-the-music-business-but-whats-next\/","title":{"rendered":"Sure, Streaming\u2019s Transformed the Music Business. But What\u2019s Next?\u00a0"},"content":{"rendered":"
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The fortunes of the global record industry can be neatly summed up in three stats: Its peak came in 1999, back when Ricky Martin was Livin\u2019 La Vida Loca, as the world\u2019s record companies generated nearly $29 billion; by the close of 2013, according to IFPI data, that number had been slashed in half, falling to below $15 billion; and last year, thanks to growth almost entirely driven by streaming, it had recovered to just over $19 billion \u2013 an upswing from the industry\u2019s nadir, but still roughly $10 billion off the peak of the CD boom.<\/p>\n

Goldman Sachs, for one, believes the best is yet to come: it forecasts that, by 2030, the worldwide record business will be generating $41 billion \u2013 with $28 billion from streaming, from over 1 billion paying music subscribers. Getting to that point is an exciting prospect, but record labels won\u2019t achieve it by standing still: for example, according to a presentation given by Sony Music to parent Sony Corp. in May, the firm\u2019s number of annual artist signings soared by 93% between 2015 and 2018.<\/p>\n

The evolution of the music business<\/a> and its future challenges were tackled in a rare and insightful interview with two music industry leaders at The Paley Center For Media in New York last Thursday: Warner Music Group\u2019s global CEO, Steve Cooper, and Facebook\u2019s Head of Music Business Partnerships & Development, Tamara Hrivnak.<\/p>\n

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Cooper\u2019s business, which works with talent like Ed Sheeran, Lizzo and Dua Lipa, turned over a record $4 billion-plus in 2018. Yet when Cooper took up the role in 2011, the same year Spotify launched in the U.S., things looked rather different: a then-piracy-hit WMG was telling investors that \u201cthe recorded music industry has been declining and may continue to decline.\u201d<\/p>\n

Hrivnak joined Facebook in early 2017 from YouTube. She has since spearheaded global licensing deals with an array of multinational music companies, enabling the launch of products like music \u2018Stickers\u2019 on Instagram and Facebook, plus Facebook\u2019s karaoke-like feature, Lip Sync Live.<\/p>\n

Cooper and Hrivnak\u2019s interview at the Paley Center fell on influential ears: attendees\/speakers at the two-day conference also included two former U.S Secretary Of States \u2013 Henry Kissinger and James Baker \u2013 plus the director of the FBI, Christopher Wray, and media heavyweights like James Murdoch, Shari Redstone, Netflix COO Ted Sarandos and Verizon CEO Hans Vestberg.<\/p>\n

Here are three key predictions made by Cooper and Hrivnak:<\/p>\n

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  1. Augmented Reality Will Be a \u2018New Format\u2019 for the Music Business<\/strong><\/li>\n<\/ol>\n

    The record industry continues to enjoy double-digit annual growth from streaming, with the market expected to post over $20 billion in global revenue in 2020. Yet a question hangs in the air: after streaming, what\u2019s next? What will be the next major innovation in the way fans connect with artists?<\/p>\n

    \u201cAugmented reality has the potential to be the next format for music, and the reason for that potential [is because] it puts fans at the heart of experiences, and it\u2019s authentic,\u201d  Hrivnak said. \u201cIt\u2019s not about pre-produced content \u2013 it\u2019s about something that\u2019s real, and happening in the moment. \u201c<\/p>\n

    Hrivnak cited Mark Ronson\u2019s \u201cPieces Of Us\u201d video as a recent example that hints at AR\u2019s possibilities. Released in August and hosted as an evolving Instagram Story, it offered fans multiple different experiences using real-time AR effects. The video, noted Hrivnak, encouraged fans to make their own versions of the production using AR tools. \u201cThat to me has a ton of legs,\u201d she added. \u201cIt\u2019s all about authenticity and getting the fans into the magic.\u201d<\/p>\n