An article from one of my favorite websites, Five Thirty Eight. “Streaming now amounts to more than a quarter of all earnings for the music industry.”
Yes, streaming is growing, while physical & download sales are shrinking. Projekt has seen this pattern, like most other labels. I would love to see a chart that shows TOTAL dollars year over year for the last decade, then breaks that pie out out between physical, digital download, and streams. I am quite curious what that would look like. If you have such a chart, send me a link.
From my perspective (as the guy running Projekt), I sense there are many people who have switched to streaming as their primary source of music (with perhaps a couple purchases a year of limited edition titles from their favorite artists). While many artists reflect nostalgically about the way it was in the 90s, I am a realist; I have to think about what is happening NOW, because (alas) we cannot go back to the way it was. As a business person, I’m always looking ahead and following along with the formats that the audience is interested in. If people aren’t buying CDs (or downloads) anymore, then Projekt as a label (on behalf of my artists) has to pick up the pennies wherever I can.
I don’t think the streaming model can sustain smaller artists, the pay rate is too low. However, it’s a case of SOMETHING vs. nothing at all. Yes, I know; it sounds like I’m “endorsing” streaming. Not exactly; but at this point what’s the other option? You can’t force customers to buy something when so many have given up on buying. Loyal fans (like those of you who buy CDs from us here at the Projekt site, our Bandcamp page or iTunes), can be relied on to buy objects. But it’s tough for that to support a small act’s $14 standard retail release CD.
I tell anyone who wants to listen that things aren’t over for us artists. It’s about (a) using all the distribution/funding tools available, and (b) having a conversation with fans that financial support is really important to help us pay the costs involved in creating art.
In the end, streaming is the way a lot of the listeners are headed. Nearly all labels I speak with report substantial streaming growth in the last two years; it’s now part of how we stay in business. You can’t leave the pennies on the floor. You gotta pick them up.
I still love when people buy from Projekt, and at the same time I realize that isn’t the way everyone wants to get their music. I do what seems best for the artists I work with.
Thanks for your support.