Impact of Digital Distribution and Streaming on the Music Industry.
Digital music streaming is the distribution and sharing of music to consumers in digital format on various online platforms.
With the advancement in internet network bandwidth; digital distributors introduced online music streaming to the market.
Impact to the Music Industry
Introducing of digital distribution and streaming caused a disruptive innovation to the music industry as it was an innovation that created a new market and value network.
Disruptive innovations start at the bottom of the market and then move up the market that displaces established competitors.
Established competitors in this case have various additional services along with the Digital Distribution like CD Duplication, CD Distribution, Publishing Administration, Audio Mastering, Monetization of Videos, Charts Registrations, Music Promotion, Free Trend Reports, Free UPCs, Free ISRs, and Facebook Audio Recognition.
Digital distribution and streaming had a huge impact on the industry. It reduced the powers of music labels on artists.
Instead of striking a deal with the music label for marketing and distribution rights, artists could go to a digital distribution company and share it with the world at a set price and the distribution company getting a share of the pie.
It created a platform for struggling artists that did not sign with record labels to share their music online and publicize on social media with the help of influential people with huge followers on Facebook and Twitter.
This innovation has made more music available to consumers than ever before. It has also influenced music listening and discovery habits.
In the past you had to listen to full albums but people now listen more to singles and compile a playlist of their favorite songs.
Popular Digital Music Distribution Companies:
Proper Music Distribution
Music Services Asia
The Orchard Enterprises
Timeless Music Company
SUGO Music Group
The state51 Conspiracy
Deciding on which digital music distribution company to subscribe to; depends on individual needs as each of the above companies have unique features that may be very important to some artists but not at all to others.
For example, there are distribution companies that only work with record labels, and some that all you need to do is to sign up and you upload music.
Things you need to consider when choosing a digital distributing company:
Digital distribution companies are not record labels; hence they should not have exclusive rights to your songs, so you have the freedom to get out of any deal without additional costs.
How long have they been in business and do you think they would be in business for a long time?
Do you think they can pay artists at the right time?
Will your release appear online at the stated date?
Make your music available in a single or various stores.
Do they distribute to just a few numbers of stores or worldwide?
This is a very important factor to consider before selecting a digital distributor. You need to consider if the payment is onetime fee or there is annual fee and if your sales will meet up to cover the fee because you need to maximize profit.
Some digital distributors allow onetime fee while few of them take 10 percent to 30 percent cut from sales while others charge per year without taking such cut.
Few ones are moderate in terms of commission and onetime fee.
Digital distribution is a creation that has reduced several inconveniences associated with buying CD albums.
It created opportunities for artists that might have never gotten deals with record labels.
Despite the high rate of piracy associated with online distribution, the pros far outweigh the cons.
Popular Digital Music Stores and Media:
24 – 7
Great Indie Music
Big Pond Music
Space Shower TV
Sirius Satellite Radio Canada
Google Music Store
One can say SoundCloud and Bandcamp are different in the sense that artists are in control of their works and profits.
Few digital distributors make their services free while they take commissions from sales.
There have also been cases of artists not getting the accurate money due from streaming using the services of some of these digital distributors but digital distribution is still the best means of reaching fans worldwide.