In its 2024 report, Spotify revealed that major record labels and Merlin’s market share fell to 71%, down significantly from 87% in 2017. BMG’s direct licensing impacted this figure, as did Spotify’s recent artist-centric changes that altered royalty distribution, benefiting major companies despite a decrease in streaming volume.
The recorded music industry experienced a decline in market share on Spotify in 2024, with the major companies and Merlin collectively holding 71% of music streams. This figure represents a significant decrease over the years, dropping from 87% in 2017, which underscores a gradual erosion of market dominance. It is important to note that this data excludes independent operators who manage their own distribution arrangements on the platform.
The major record labels face ongoing challenges in maintaining their market share on Spotify as independent distributors become increasingly influential. The impact of artist-centric royalty changes may offer a strategic advantage to these traditional players by potentially boosting their revenue from streaming services. As the music landscape evolves, the focus on direct licensing and adapting to new pay structures will be crucial for all stakeholders involved in music distribution.
Original Source: www.musicbusinessworldwide.com
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