New Music Trends: Pandora & Spotify

Stephanie Griffin

 

           The music industry has been affected by the increase of the internet and technology over the past decade. A growing trend we are seeing is the popularity of streaming music programs now available on computers and smart phones. They are changing the way we purchase (or do not purchase) music, what we are listening to, and where we can listen to music. According to one of our readings this week, "At least 33 million people have tried Spotify, more than 150 million have registered for Pandora" (Sisario). Although Ben Sisario's article demonstrates some negative aspects of these programs through a financial standpoint, this blog focuses on how programs like Pandora Radio and Spotify may have positive affects on both the music and radio industries.
 

Spotify in particular allows us to connect our listening history to Facebook. Eliot V. Buskirk of Hollywood Reporter mentions the increase popularity of Spotify through the social media connection. He states, “Facebook integration seems to be working well for Spotify based on its September numbers. Whether it can keep that up next month is another story -- and from where we're sitting, largely depends on whether Spotify can convince people to use its upcoming Private Listening feature when they don't want to share, rather than disconnecting Spotify from Facebook permanently” (Buskirk). In most cases, people are not ashamed to share what they are listening to on Spotify. Furthermore, anything that is easily connected to social media can readily become an active part of our online activity. Therefore, think if you have been using these programs to listen to music. Why are you using them and where are you using them the most? Furthermore, in response to the trade publication analyzing this combination of programs and social media, do you feel these programs are a good or bad technology for today’s musicians? Considering how accessible computers, smart phones, and even tablets are becoming, we are able to take our information anywhere we go- this includes our music. Not only has technology changed the way we listen to music, but the music industry itself has also been forced to modernize to stay in business.

We have established how these streaming programs are forcing the music industry to become digital. NY Times writer, Eric Pfanner, writes in his article, "Music Industry Braces for the Unthinkable,” about how the music industry has certainly taken a financial hit with the increase of online piracy and illegal downloads. Yet, the streaming programs of Spotify, along with Rdio and Deezer could save the music industry. He writes,

 

“Around the world, 10 million people have already signed up for subscription-based online services from Spotify, Rdio and Deezer, some of which have attracted additional millions of users with free, advertising-supported services. Many executives hope the growth of offerings like these can reduce the industry’s dependence on sales of individual tracks through digital stores like Apple iTunes, a model that has attracted little interest from young music fans, particularly outside the United States. Music executives say Internet service providers hold the key to solving the piracy problems and helping the music companies recoup lost revenue” (Pfanner).

 

In response to Pfanner’s statement, why do you think the online streaming programs target specifically young music fans like our generation through aspects like social media? Does this mean we will affect how the music industry works in the future? As the music industry adapts to such technological changes, the radio industry may not be far behind.
             Not only are programs like Pandora and Spotify affecting the opportunities for audiences to buy music since these programs are free, they are also competing against today’s radio industry. According to our Arbitron reading from this week, radio is still listened to frequently amongst audiences ("Radio Today 2012”). Even with the streaming programs of Pandora and Spotify, “Americans depend on radio as a reliable media companion” (“Radio Today: 2012”). Do you agree with the Arbitron research study even with these programs growing popularity? Why or why not?  Although we’ve learned how radio was forced to change its format upon the arrival of television, it is important to consider the future of the music and radio industries with the increase of online music programs like Pandora and Spotify.

            With the enhancements of streaming music programs, the future of the music industry will inevitably be affected. According to the journal article, “The Future of the Music Industry” by Bohdan and Anastasia Pikas, along with Candice Lymburner, music programs like Pandora and Spotify are a benefit for the music industry since they allow audiences to discover new artists. The authors state, “As more music downloads become available at little or no cost, and file sharing continues to grow, people will be exposed to a much larger array of bands, artists, and even genres of music. With the opportunity of increased exposure at the expense of lost song profits, artists all over the world may reap the benefits in other ways, including that of larger audiences at their live concerts” (Pikas, Pikas, and Lymburner 142). In other words, even though music listeners can now listen to most music online free, they are still likely to contribute to the artists’ revenue through attending concerts and buying merchandise. What do you think about this idea of the future of the music industry with Pandora and Spotify program offering this newly digital service of listening music?

 

Works Cited:

 

Buskirk, Eliot V. "Spotify Usage Explodes After F8, Facebook Integration." The Hollywood Reporter. N.p., 30 Sept. 2011. Web. 23 Feb. 2013.

 

Pfanner, Eric. "Music Industry Braces for the Unthinkable." The New York Times. The New York Times, 24 Jan. 2011. Web. 23 Feb. 2013.

 

Pikas, Bohdan, Anastasia Pikas, and Candice Lymburner. "The Future of the Music Industry." Journal of Marketing Development and Competitiveness 5.3 (2011): 139-49. North American Business Press, June 2011. Web. 23 Feb. 2013.

 

"Radio Today 2012: How America Listens to Radio." Www.arbitron.com. Artbitron, 2012. Web. 23 Feb. 2013.

Sisario, Ben. "Pandora and Spotify Rake In the Money and Then Send It Off in Royalties." Media Decoder Pandora and Spotify Rake In the Money and Then Send It Off in Royalties Comments. N.p., 24 Aug. 2012. Web. 20 Mar. 2013.