Platforms’ arrival have undoubtedly led to a world economy revolution in every aspect. Catering, cinema, music, entertainment, there is no sector that has not been involved in this huge change. This digital revolution started in the early 2000s with the creation of Youtube in 2005, followed by Amazon Prime Video in 2006 and Netflix the year later. These three years marked the beginning of a new-entertainment-era, laying the foundation of a new society based and educated on streaming. This disruptive change touched the music business in 2008, the year in which Spotify was born. Since then, the streaming rise has not stopped and now, 15 years later, it doesn’t seem willing to do it. Few numbers are provided in order to clarify the streaming burden in the music industry. In the last 8 years Spotify users increased more than 8 times, reaching 551 million users in 2023. Similar growth is the Netflix one, which quadrupled its subscribers since 2015 (62 million vs 238 million). The streaming takeover is evident by considering its relevance in the music market. Is not a case that it represents 67 % of the whole music industry, a market share which is worth $ 3,177 billion. Platforms forced industries to be flexible and adaptable to changes. In fact, they brought firms to reshape their business models, revenue streams and also their proposal. Moreover, what streaming services changed the most is the customer and its approach to the purchase. Nowadays businesses cannot afford to offer just a product, they have to take care of the client from the early stages of the sale process. Platforms transformed the sale into an experience in which the product is no longer the core of the sale, but the focus is on the customer. All things considered, this disruptive business-life revolution did not satisfy everyone. Do platforms have negative aspects? Which ones? Did streaming save or destroy the music business? What is next? This paper provides a deep analysis of the music industry's last 40 years journey. From CDs to MP3s, from Napster to streaming platforms, highlighting pros and cons of these music consumption methods and why they become obsolete. By considering platforms, huge focus has been placed on their functionality, their impact on the economy and how they dealt with one of the main music issues at that time: piracy. Afterwards, a practical example has been provided by considering the most successful streaming platform of all the time: Spotify. The firm analysis started by its history and moved to how it works. Business model, revenue streams, advertising methods, copyright and royalties calculations are all deeply examined in the paper. The platform relationship with users and the change in the company’s proposal over time are topics addressed in this analysis, which ends with a business comparison with Netflix, the leading streaming platform in the world. Once platforms have been examined, it was necessary to consider the other fundamental character in the music game, the record label. This analysis involved the understanding of their utility for artists, their actual value in the music experience, their revenue model and who are the 3 major labels leading the industry. Lastly, the “what is next” question has been considered. From the environmental sustainable entertainment to the arrival of artificial intelligence: the last chapter refers to the future of music, an unpredictable and extremely dynamic industry. In carrying out this paper several interviews were conducted. Experts' contributions enrich the music industry analysis by giving a direct and internal opinion on streaming strengths and weaknesses.
L'arrivo delle piattaforme ha indubbiamente portato a una rivoluzione dell'economia mondiale in ogni suo aspetto. Ristorazione, cinema, musica, intrattenimento, non c'è settore che non sia stato coinvolto in questo enorme cambiamento. Questa rivoluzione digitale è iniziata nei primi anni 2000 con la creazione di YouTube nel 2005, seguito da Amazon Prime Video nel 2006 e da Netflix l'anno successivo. Questi tre anni segnarono l'inizio di un'era dell'intrattenimento nuova, ponendo le basi per una nuova società basata ed educata allo streaming. Questo cambiamento rivoluzionario ha toccato l'industria musicale nel 2008, l'anno in cui è nato Spotify. Da allora, la crescita dello streaming non si è fermata e ora, 15 anni dopo, sembra non essere intenzionata a farlo. Al fine di evidenziare l'importanza dello streaming nell'industria musicale, di seguito sono riportati alcuni dati. Negli ultimi 8 anni, gli utenti di Spotify sono aumentati di oltre 8 volte, raggiungendo 551 milioni di utenti nel 2023. Una crescita simile è stata registrata da Netflix, che ha quadruplicato i suoi abbonati dal 2015 (62 milioni contro 238 milioni). L’affermarsi dello streaming è evidente considerando la sua rilevanza nel mercato musicale. Non è un caso che rappresenti il 67% dell'intera industria musicale, una quota di mercato che vale 3.177 miliardi di dollari. Le piattaforme hanno costretto le industrie a essere flessibili ed adattabili ai cambiamenti. Infatti, hanno spinto le aziende a ridefinire i loro modelli di business, le fonti di guadagno e anche la loro proposta. Inoltre, ciò che i servizi di streaming hanno cambiato maggiormente è il cliente ed il suo approccio all'acquisto. Oggi le imprese non possono permettersi di offrire solo un prodotto, devono prendersi cura del cliente fin dalle prime fasi del processo di vendita. Le piattaforme hanno trasformato la vendita in un'esperienza in cui il prodotto non è più al centro, l'attenzione è rivolta al cliente. Tutto considerato, questa rivoluzione digitale non ha soddisfatto tutti. Le piattaforme hanno aspetti negativi? Quali sono? Lo streaming ha salvato o distrutto l'industria musicale? Quale sarà il futuro della musica? Questo articolo fornisce un'analisi approfondita degli ultimi 40 anni dell'industria musicale. Dai CD agli MP3, da Napster alle piattaforme di streaming, mettendo in evidenza i pro e i contro di questi metodi di consumo della musica ed il motivo per cui sono diventati obsoleti. Considerando le piattaforme, è stata posta una forte attenzione alla loro funzionalità, al loro impatto sull'economia e a come hanno affrontato uno dei principali problemi musicali dell'epoca: la pirateria. Successivamente, è stato fornito un esempio pratico considerando la piattaforma di streaming musicale più di successo di tutti i tempi: Spotify. L'analisi dell'azienda è iniziata dalla sua storia ed è passata a come funziona. Il modello di business, le fonti di guadagno, i metodi di pubblicità, i calcoli dei diritti d'autore e delle royalties sono tutte tematiche ampiamente analizzate nell'articolo. Il rapporto piattaforma-utente ed il cambiamento nella proposta dell'azienda nel tempo sono argomenti affrontati in questa analisi, che si conclude con un confronto aziendale con Netflix, la principale piattaforma di streaming al mondo. Una volta esaminate le piattaforme, è stato necessario considerare l'altro personaggio fondamentale nel gioco della musica, l'etichetta discografica. Questa analisi ha coinvolto la comprensione della sua utilità per gli artisti, il suo effettivo valore nell'esperienza musicale, il suo modello di guadagno e le tre realtà più potenti nell’industria. Infine, è stata considerata la questione legata ai nuovi trends. Dall'intrattenimento sostenibile all'arrivo dell'intelligenza artificiale, l'ultimo capitolo si riferisce al futuro della musica, un'industria imprevedibile e estremamente dinamica.
LA RIVOLUZIONE DELLE PIATTAFORME NELLA MUSICA Come i servizi di streaming hanno influenzato l’industria musicale e la percezione sociale di musica
MALAVASI, MICHELE
2022/2023
Abstract
Platforms’ arrival have undoubtedly led to a world economy revolution in every aspect. Catering, cinema, music, entertainment, there is no sector that has not been involved in this huge change. This digital revolution started in the early 2000s with the creation of Youtube in 2005, followed by Amazon Prime Video in 2006 and Netflix the year later. These three years marked the beginning of a new-entertainment-era, laying the foundation of a new society based and educated on streaming. This disruptive change touched the music business in 2008, the year in which Spotify was born. Since then, the streaming rise has not stopped and now, 15 years later, it doesn’t seem willing to do it. Few numbers are provided in order to clarify the streaming burden in the music industry. In the last 8 years Spotify users increased more than 8 times, reaching 551 million users in 2023. Similar growth is the Netflix one, which quadrupled its subscribers since 2015 (62 million vs 238 million). The streaming takeover is evident by considering its relevance in the music market. Is not a case that it represents 67 % of the whole music industry, a market share which is worth $ 3,177 billion. Platforms forced industries to be flexible and adaptable to changes. In fact, they brought firms to reshape their business models, revenue streams and also their proposal. Moreover, what streaming services changed the most is the customer and its approach to the purchase. Nowadays businesses cannot afford to offer just a product, they have to take care of the client from the early stages of the sale process. Platforms transformed the sale into an experience in which the product is no longer the core of the sale, but the focus is on the customer. All things considered, this disruptive business-life revolution did not satisfy everyone. Do platforms have negative aspects? Which ones? Did streaming save or destroy the music business? What is next? This paper provides a deep analysis of the music industry's last 40 years journey. From CDs to MP3s, from Napster to streaming platforms, highlighting pros and cons of these music consumption methods and why they become obsolete. By considering platforms, huge focus has been placed on their functionality, their impact on the economy and how they dealt with one of the main music issues at that time: piracy. Afterwards, a practical example has been provided by considering the most successful streaming platform of all the time: Spotify. The firm analysis started by its history and moved to how it works. Business model, revenue streams, advertising methods, copyright and royalties calculations are all deeply examined in the paper. The platform relationship with users and the change in the company’s proposal over time are topics addressed in this analysis, which ends with a business comparison with Netflix, the leading streaming platform in the world. Once platforms have been examined, it was necessary to consider the other fundamental character in the music game, the record label. This analysis involved the understanding of their utility for artists, their actual value in the music experience, their revenue model and who are the 3 major labels leading the industry. Lastly, the “what is next” question has been considered. From the environmental sustainable entertainment to the arrival of artificial intelligence: the last chapter refers to the future of music, an unpredictable and extremely dynamic industry. In carrying out this paper several interviews were conducted. Experts' contributions enrich the music industry analysis by giving a direct and internal opinion on streaming strengths and weaknesses.È consentito all'utente scaricare e condividere i documenti disponibili a testo pieno in UNITESI UNIPV nel rispetto della licenza Creative Commons del tipo CC BY NC ND.
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https://hdl.handle.net/20.500.14239/3278