Riches in Niches: As the Music Business Nears Peak Streaming, Where Will Growth Come From Next?

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Music streaming growth has slowed. Can new markets help? With business in North America and Europe down, the industry will have to look elsewhere.

It’s all about the artist, music executives say . If you really look at the industry over time, though, it’s really all about the formats — the health of the business may have more to do withpeople listen to music than what they actually listen to. For the last decade, that has been on-demand streaming, and the music business has boomed — from total revenue of $6.7 billion in 2014 to $17.1 billion last year,what it was at the beginning of the streaming boom.

The truth is that there’s still plenty of opportunity in developed markets, including plenty of room to raise streaming subscription prices, but creators and rightsholders don’t have to just sit around and wait for that. Other opportunities are emerging, and growth could be fueled by licensing music for AI training, as well as for social media, video games, and the next iteration of the technology formerly known as the Metaverse.

 

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