The widespread use of online music streaming services has been by far the most important development in the industry over the past decade. According to the RIAA, music streaming contributed 75% of the revenue generated by the recorded music industry in 2018. With the huge improvements in VR and AR technology, the experience of attending a live-streamed concert is almost as good – if not better – than attending in person.
Streaming services are looking for ways to broaden their customer bases, improve their products, increase their revenue, and establish a business model that is financially viable over the long term.
So what are some of the benefits of live-streaming music and is this the future for musicians and fans?
Wider audience
This has shown how effective the internet can be in generating a large audience because more and more people are choosing to listen to and watch their favourite artists and bands perform online as a source of entertainment during the lockdown.
The world of the internet provides an incredible number of opportunities for gaining exposure, as anyone, from any location, is able to tune in with the click of a button, whether they are scrolling through their social media or visiting a website.
Although many members of an audience would love nothing more than to be in the same room their favourite artist while they perform, this simply is not feasible for the majority of them. This could be because of where they live, their financial situation, or some other personal circumstance. The artist can appeal to these individuals and reach a significantly larger audience if they also make their performances available online; all their audience members will need is a device on which they can watch their streams.
Increased revenue for artists
There is the opportunity for artists to monetize their live streams and increase revenue from them. They have the option of broadcasting pay-per-view (PPV) live streams, in which case each viewer is required to pay a fee—either a small or significant one—before they are granted permission to tune in.
Offering free video content is the best way for artists get started in the live-streaming industry, whether they are just getting started or they have never done it before. They will be able to avoid alienating any potential fans who might not be able to pay and still attract an initial audience if they do it this way. Once they have built up a solid reputation on the internet, selling PPV videos can be a hugely valuable way to generate revenue. In the long run, selling PPV videos may even be more profitable than selling tickets to an actual venue.
Engagement
Live music streams, in contrast to physical performances, allow viewers to interact with the performances by leaving comments expressing their thoughts and reactions to the music being played. Artists can benefit from the ability to respond to comments and form connections with existing and potential fans online, even though the excitement and energy of a live-streamed performance can not quite match up to that of attending a physical gig. However, live-streamed performances are becoming increasingly popular.
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Jay B McCauley is a renowned award-winning music journalist, broadcaster and record producer. He has written for some of the biggest platforms in the game and runs his own label Vagrant Soundz.
