In the electrifying atmosphere of Tomorrowland 2023, Brazil amidst the roaring applause of 180,000 live audience members, Sunnery James spun magic, not just with his music but with smart glass + live streaming, bringing the world together through music and innovation of wearables. An additional 1.8 million tuned in for the live broadcast: a testament to the power of live streaming in amplifying the reach of live music events.
Envision a world where global superstars like Taylor Swift or Jamie Jones step onto a stage, and you are right there with them, seeing what they see, feeling what they feel, performing and moving together with a huge audience in front of them, by the same beat, as one
If you ever experienced the backstage of a concert or being in the DJ booth’, this must give you chills. Tomorrowland experience was only the gateway for MPAX effect on the music world and in this article, we will dive deep into the current music industry limitations, emerging tech, and the vision of bringing the world together through music, live streaming, and wearables.
The limitations for artists in the music industry
Soundpush names lack of access to funding low revenue from streams and competition from major labels as the top three current problems in the music industry.
1. Low revenue from streaming
Let’s talk about streaming, the double-edged sword. Sure, it’s made music more accessible, but it’s also turned the art of sound into pocket change. Think about it — independent artists get the short end of the stick. They’re struggling to get those streams while the big players take in the cash. And let’s not even get started on the uneven distribution of streaming dollars — it’s like a David and Goliath showdown where David doesn’t stand a chance.
- A study conducted by Digital Music News revealed that, on average, artists earn approximately $0.033 per stream from popular streaming platforms like Spotify, a stark contrast to the heyday of physical sales and downloads. So, if we use Spotify’s $0.0033 per stream rate, an album with 1,500,000 streams should earn $4,950. The Recording Industry Association of America (RIAA) reported that streaming music made up 83% of the total U.S. music industry revenues, yet artists still faced challenges due to the low per-stream payouts.
2. Competition from major label artists.
Brace yourself for this one — the fierce battleground of artists’ survival. In one corner, we’ve got the big record labels, armed to the teeth with money and resources, ready to blast their artists into the stratosphere. In the other corner, our independent music heroes, battling it out with nothing but raw talent and determination. Major labels flaunt their cozy connections and power plays in the music industry, ensuring their artists are front and center. Independent artists? They’re hustling to even catch a glimpse of the spotlight. Success? It’s like trying to outrun a freight train when you’re riding a skateboard.
- At Spotify, major record labels earned over $4 billion in profit in 2022.
- 93% of Spotify artists have under 1000 monthly listeners (WBM)
Since the big labels always find their way, the problems are more focused on the independent artists, who struggle to get exposure, fair monetization models, and opportunities compared to the big labels. However, the proportion of Spotify streams decreased significantly in the last years as a consequence of the independent artists.
In fact, 87% of Spotify’s total streams in 2017 were from the big labels; however, that percentage dropped to 85% in 2018, 82% in 2019, 78% in 2020, 77% in 2021, and 75% in 2022.
A new growth pattern in the recorded music industry is emerging, and we are all here for it. However, the current monetization models stop emerging artists from getting the recognition they deserve.
Current streaming & monetization models: Spotify
Spotify, a popular streaming platform, pays artists between $0.003 to $0.005 per stream, with a revenue split of 70% to the artist/rights holders and 30% to Spotify. The exact earnings per stream can vary due to factors like the distributor, the listeners’ country, and their Spotify account plan.
Spotify’s payment structure is based on a pro-rata model, where revenue is distributed based on Spotify’s total streaming revenue pool, the negotiated global payout percentage, the total number of streams on the platform, and the number of streams for a particular artist. Different factors, such as the choice of distributor and the location of listeners, can affect the per-stream rate.
The pay-per-stream rate on Spotify may vary compared to other music platforms, and to maximize earnings from streaming, it’s essential for artists to explore different income streams in the music industry.
The role of live-streaming platforms in music industry
Platforms like TikTok and Snapchat have already introduced millennials and Gen Z to the concept of live concert streaming. Today, anyone can broadcast a live concert to a global audience, and the popularity of virtual concerts continues to soar.
TikTok recently launched a new rival to music-streaming giants Spotify and Apple Music, as the popular short video app seeks new avenues for growth. TikTok Music announced plans to test its service in Australia, Mexico, and Singapore, following its recent launch in Indonesia and Brazil earlier this month.
🎵Furthermore, TikTok recently expanded its licensing agreement with Warner Music Group to bolster its music content library. Its unique advantage lies in its vast user base, particularly in Indonesia and Brazil, with 113 million and 84.1 million active users aged 18 and above, respectively.
TikTok Music aims to simplify saving, downloading, and sharing favorite tracks from TikTok, making it easier for its users. But while it is the second-most common source of music discovery among 16 to 19-year-olds, just behind YouTube, according to MIDiA Research — switching from Spotify or Apple Music may not be so attractive to loyal users of these established platforms.
Tech in the music industry: the emergence of virtual venues
But the users a hungry for more and so next to the conventional ways of music monetization, there emerges innovative tech like virtual venues.
A virtual venue is essentially a digital representation of a concert hall, complete with virtual lobbies, chat rooms, and even online merchandise stores. Unlike traditional venues, these virtual spaces are accessible to anyone with an internet connection, effectively erasing geographical boundaries. With live concert streaming, every seat offers a front-row view. Virtual venues complement physical ones by providing a more accessible and environmentally sustainable alternative, in line with the growing emphasis on eco-friendly events.
Picture an artist performing live in Nashville while a fan in Tokyo not only watches but actively participates — all in real-time. This digital transformation has enabled music to transcend borders, fostering deeper fan engagement and making live performances more accessible and affordable.
Artists, like Imagine Dragons, Mariah Carey, Elton John, David Guetta, and Lil Nas X, have embraced virtual concerts with platforms like Roblox, providing immersive experiences with themed avatar accessories. These examples underscore the transformative potential of tech in the music industry. And the audience is ready for it.
MPAX: live streaming and innovation taking music experience to the next level
MPAX takes into consideration the current industry problems, the lack of spotlight and earning opportunities for artists, and the emerging trends in tech and the music industry — and turns it into a coherent experience, benefiting all: the artists, the streamers, and the music industry altogether.
Imagine being able to stream your live performances with a unique and personalized perspective. The game-changer here is that you have the autonomy to set the price for each stream individually, giving you unprecedented control over how you monetize your music and at what rate. Whether you’re an emerging artist or an established one, this level of control means you can tailor your strategy to your unique circumstances, allowing your art to flourish and your earnings to reflect your talent.
Artists like SunnerySames, with nearly 2 million eager streamers, would have had the opportunity to maximize their earnings on MPAX. The possibilities become boundless as you take charge of your music’s revenue potential.
MPAX offers an array of benefits for music artists:
Uncapped Monetization Model: Say farewell to the constraints of limited earnings and welcome the vast potential of unlimited revenue.
Enjoy up to 80% revenue share: whether you’re a Paxer (creator, streamer) or a Beholder (consumer, viewer), there’s something for everyone.
🔹 Free-for-all stream with advertising opportunities and donation options;
🔹 Pay-per-stream;
🔹 Monthly/annual subscriptions;
🔹 Live-shopping.
Read more about the diverse ways of content monetization in our previous article.
Complete Control: You are the captain of your ship, deciding not only the price but also the overall strategy. It’s your music, your rules. MPAX is all about giving back the power to the creators’ hands, meaning that our platform is the gateway for those who enjoy their flexible hours, who care to utilize their specific skills, and who set their rates how they want to. The key component of MPAX magic is that the content you produce is truly yours, all content and IP rights including.
Audience Engagement: Forge connections with your fans like never before, cultivating deeper and more meaningful bonds that extend beyond the music. Live streaming is all about engagement: engage with your audience during the stream via live chats, respond to their requests, answer questions, and… even sell live!
Global Exposure: With MPAX, your music can transcend borders, reaching music lovers worldwide and breaking free from geographical constraints. Anyone can tune into your live stream, as long as they have WiFi and blockchain-supported payments.
Easy Access: MPAX simplifies the journey for artists, offering a user-friendly platform that empowers you to navigate your music career with ease. Now, anyone can be a part of the creator economy! With just a wearable device and a starter package, you’re set to dictate your rates, hours, and services.
The age of artist empowerment has arrived, and it’s embodied in MPAX. Seize the opportunity to redefine your music journey, unleash your full potential, and experience the future of music monetization.
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