Challenges and Opportunities of Digital Platforms Such as Spotify

Stephen Blackwell is a well-established entertainment executive who guided SpinMedia as CEO and the Billboard-Hollywood Reporter Media Group as chief strategy officer. Based in New York, Stephen Blackwell is presently an investor in a digital media sphere that continues to expand as new platforms and revenue opportunities come online. 

One challenge facing many artists is the sheer ubiquity of music, as more affordable distribution channels, paired with a decrease in expenses associated with home recording, have resulted in a plethora of new releases.

Musicians who were previously unable to record and access major markets are now able to launch singles and albums from anywhere in the world with a minimum of hassle. On Spotify alone, between 10,000 and 30,000 new songs are released each day. This sheer volume makes it more challenging to stand out, even for those with compelling sounds and visions.

One factor in independent musicians’ favor on Spotify is that algorithmically derived playlists are designed to ensure that content from independent artists and major labels is weighted the same. At the same time, curated playlists that reach large demographics also mix in a significant amount of “undiscovered” music. For those who do create music that somehow reaches influencers’ ears, the digital platform can amplify their reach exponentially in a relatively short time. They can also generate long-term revenues as songs remain on royalty-generating playlists for decades. 

Unfortunately, many musicians do not have the leverage or tools to break through and achieve sustaining success on digital platforms. For a large number of musicians, live gigs are the bread and butter on which they rely to make money from their art.

Music Sales Reach a New Peak in the UK

Knowledgable on the interface between technology and media, Stephen Blackwell’s background includes a previous position as chief strategy officer with the Billboard-Hollywood Reporter Media Group. Music industry-focused, Stephen Blackwell follows worldwide trends in the digital streaming sphere. 

As recently reported in the Guardian, the UK is experiencing its fastest level of music consumption growth in two decades on the strength of streaming services. In 2017, British consumers purchased the equivalent of approximately 135 million albums spanning formats such as subscription service streams, digital downloads, vinyl, and CDs. This represented a nearly 10 percent year-on-year increase, with Ed Sheeran heading a list of top earners that also included Pink, Drake, Liam Gallagher, and Sam Smith. 

The market expansion was spearheaded by audio streaming, which witnessed an unprecedented 51.5 percent surge, with more than half of all albums now listened to and purchased streamed. At the same time, vinyl continued on its upward arc, with traditional albums registering sales of 4.1 million, which was the highest number in 27 years. With Sheeran’s Divide topping UK vinyl sales and all other categories, the other top vinyl sellers were an eclectic bunch that included Amy Winehouse’s Back to Black (2006) and Fleetwood Mac’s Rumours (1977).