Evolution of music search; Spotify copying TikTok; and Undifferentiated digital distribution
Edition 11
Hi folks
Happy Wednesday! Welcome to The Industry Playlist 🎵
This week I deep dive into how music search technology is evolving, Spotify’s increasing inspiration from TikTok, and why digital music distribution companies have a differentiation problem in the streaming world.
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Finally, this week the slim shady is out with a brand new album, ironically called ‘The Death of Slim Shady’. Being politically correct is an afterthought in this one. My favorite from the album? Brand New Dance 🎵
Now, let’s get to it.
🪁 SONIC SHIFTS
Evolution of music search technology - we’re at the first stage of mass-market multi-dimensional search
In a previous edition, I talked about how [music] search will get multi-dimensional. YouTube’s latest experiment to try ChatGPT-esque search for playlists got me thinking about how music search technology is evolving (see graphic). Recent developments like YouTube Music testing AI radios and Spotify’s AI Playlist feature are prime examples. These tools allow users to generate personalized music experiences from simple prompts, marking the beginning of more sophisticated, context-driven searches.
YouTube Music's AI radios create tailored stations based on user preferences, while Spotify’s new feature lets users transform any idea into a playlist. These innovations are the first steps in a journey towards multi-dimensional search, where emotional and situational contexts will play a crucial role.
As we get deeper into the techification (or enshittification, two sides of the same coin), beating the search function is the key to breaking through the noise as an artist if your goal is to stream well.
Spotify taking its first step on becoming a social network
Spotify has launched comments on podcasts, music could be next. This move aims to enhance interactivity, by fostering greater audience loyalty through engagement. Thus far Spotify has avoided full social interactivity but with its latest search for growth, its recent inspirations from TikTok, looks like Spotify is slowly morphing into a social media for audio instead of being just a music/audio app. Going social has its monetization pitfalls - eventually social networks become advertising businesses (imagine paid music recommendations on Spotify) - but it looks like Spotify has no choice with TikTok increasingly investing in music. The takeaway from this development is that there is too much going on with Spotify which has nothing to do with music and one day this will mean true music listeners will switch to newer platforms.
Digital music distribution companies have a differentiation problem in the streaming world
New-age digital music distribution companies face a significant differentiation problem in today’s streaming world. While these companies offer various tools to attract artists—like Amuse's 'Stream Check' for analyzing inflated streams and Madverse's generative artwork—these features serve primarily as hooks that entice artists to try their distribution service and eventually convert them into paying customers.
However, the reality is that price remains the primary differentiator. Companies like Tunecore dominate because they offer the most cost-effective solutions for independent artists. Unlike the past, where unique fanbases and targeted audiences were key selling points, digital streaming has flattened these aspects. DSPs are the new intermediaries, replacing music labels and thus making it challenging for distribution companies to stand out based on service alone. With a flood of distribution companies in the market, the market is seeing a race to the bottom on pricing (good thing for independent artists), with companies striving to undercut each other to attract independent artists.
There are 2 ways to stand out from the crowd - build a digital tool that is useful for enough artists to use extensively and then transform into a distribution service; or skip the digital bandwagon to create offline access to new audiences (Dynamite Disco Club is a good example of the latter)
📚 CURATED INSIGHTS
How Fortnite and Roblox are becoming marketing tools for the music industry
Music companies have started to make a pretty penny by turning gamers’ passive listening into more active engagement and discovery. Last month, The Rolling Stones debuted inside UMG’s virtual hub inside Roblox, which allows users to play licensed tracks directly within the experience.
Related: The Best Music and Gaming Activations from 2023
Niche is the New Mainstream
Hyper targeting, both in marketing campaigns and streaming recommendations, is creating a new type of hit and a new type of artist. Niches thrive in this world of fragmented fandom, but niche no longer inherently means small. See graphic: conceptual overview of the shift in music fan audiences.
Music isn’t getting worse, genre is
Genres were only ever intended as a way for audiences to navigate their way through music. It is a knowledge system, and remains the primary way we understand music. However, we live in the world of meta-genres now - read more to find out what they are.
Training AI music models is about to get very expensive
Record labels are suing two leading AI startups and are reportedly exploring a licensing deal with YouTube—actions that will determine what the future of AI music sounds like, and if there is one at all.
🔥 KEEP TRACK OF
SoundCloud forms strategic partnership with Resident Advisor
This is a refreshing development in a world of machine-driven recommendations. The initiative aims to enhance the discovery experience for the wider electronic music community. In other words, this is bringing humans back in discovery rather than letting machines do the work. I’m all for it.
AmplifyWorld Announces $500,000 Artist Fund
More artist grants are launching more than ever. This one is aimed at supporting forward-thinking musicians irrespective of what stage you are at in your career.
$22 Bn worth of Taylor Swift tickets hacked
Apparently Live Nation has already paid $1 Mn to keep this breach under wraps, but sadly its already out. Such cyber breaches are something to look out for, especially for the reputation of ticketing companies.
LifeScore transforms artists’ original recorded music into endless unique variations
We keep hearing about DSPs being flooded with lo-fi remixed versions of original tracks. LifeScore is one of the companies behind this service - offering AI computed short-form remixes, long-form remixes, remixes for activity, remixes by genre, remixed by location, and other such adaptive remixes, to open up new distribution and monetization opportunities for artists and rightsholders.
That’s all for today. We’ll be back in your inbox next week.
Thanks for reading,
Rohit