Many musicians do not believe in earning money through art skills. On the other hand, there are lots of individuals who have monetized their skills through one or other music streaming software like Spotify, Pandora, Tidal, and more.
Music streaming platforms enable artists and business owners to earn profits. If you want to know how music streaming platforms allow you to make money, this article can help you have in-depth information immediately.
Composing musing, spending time in the studio to compose music, and bringing music creation joy, are quite fascinating. But are you aware of the trick of capitalizing on your work on music streaming software? It is undoubtedly an advantageous takeaway to advance the success ladder one step ahead.
Commercializing music is not a primary aspect of what you tend to produce, as there are lots of genres that you can diversify into. The first-graded method of monetizing artists’ works on music streaming platforms has evolved over the years. Past was days when online distribution was done through CDs which used to be sold in independent stores.
The trends were replaced by records and cassettes, which caught the attention of many people. But in this digital age, monetization has set its own standards with the advent of building a music streaming app for successful artists or musicians like you!
What you need to know is how you can monetize the music online. Before jumping to ways of making money through music streaming software, let’s have a quick look over the music streaming industry revolution.
Music Streaming Industry Overview
Statista report shows that revenue in the music streaming segment is estimated to reach around US$30.33bn in 2022. The revenue is predicted to show an annual growth rate of 7% CAGR between 2022 and 2027, resulting in a projected market volume of US$43.63bn by 2027. The users in the music streaming industry are projected to increase and reach around 1,083.1m users by 2027.
Thanks to steady growth in streaming subscriptions, music industry revenues increased by almost 18% in 2021. The IFPI’s Global Music report shows that 2021 was a growth year for the music industry; the growth that was measured in this year was not measured in the sector in the previous years. Streaming accounted for 65% of revenue growth as the paid subscribers continued to soar.
More than 80 million people jumped on the music-streaming bandwagon last year alone, bringing the global subscription users to almost 523 million by 2021. Starting at 8 million in 2010, paid music subscriptions have increased by five times in just a few years.
Music Streaming Business Growth
In 2021, the music streaming market size was valued at 29.45 billion. The market is projected to increase by 14% CAGR between 2022 and 2030. The increasing penetration of digital solutions and increasing use of smart devices are projected to increase the market growth over the period.
Music services in the form of CDs were the primary source of hearing music in the early years. With the availability of the internet and the digitally inclined crowd, all the physical mediums started declining. With the launch of an app like Spotify and other music & audio streaming launched, people were exploring the wonders of music streaming. However, with the advent of smartphones, 5G technology, and cloud transitions, all these streaming apps became mainstream.
Music streaming platforms enable users to listen to music, podcasts, and more with ease. These apps are gaining popularity due to advanced features like recommendations, hassle-free connectivity, automatic playlist personalization, etc. However, the podcast genres on these online streaming portals are propelling the growing market.
What is Music Monetization?
Monetizing the music is simply the best way to monetize and digitize the music content as per the customization preferences. Different sectors leverage the monetization factor; it becomes straightforward for you to relate and generate maximum revenue through music streaming platforms and other ways, including online marketing, social channels, etc.
Advantages of Monetizing Your Music Streaming Platform
No matter whether you have started your career as a music artist or launched your music streaming business, setting yourself unique is essential. It pays for you when you start streamlining the revenue stream in today’s digital age to supplement your targeted goals. You can enjoy lots of advantages by monetizing your music using a music streaming platform.
1. Highly Profitable
2. Build Digital Revenue Easily
3. Connect With Your Peers & Fans
4. It’s Simple To Prosper
Artists can make lots of money through music streaming software similar to Spotify or any other. Most of their revenue comes from online subscribers and advertisements. According to a Statista report, an artist is paid some percentage for their work with millions of views on a music streaming platform like Pandora, Apple Music, Spotify, Deezer, etc. The payment amount differs on all the platforms; you have to look to know which platform pays more to an artist.
The artists and musicians are paid based on how their music is listened to and liked by the audience. A music streaming app, Deezer, is pushing to change this mechanism and pressuring big giants like Spotify to do the same.
How To Monetize Your Music Content with a Streaming Platform?
The music streaming market is evolving continuously. With new enticing and enhancing aspects to different business models, possibilities and the competitive ground for both listeners and artists have increased to a great extent.
Even many music streaming businesses or artists are developing an app similar to Spotify to easily generate revenue and automate their business operations. Let’s explore a few monetization methods that you can follow to monetize your music content with a streaming platform.
Build a Freemium Model
It’s the initial approach that helps you develop a relationship with a wider customer base. You can provide free music and can reserve exclusive content with a premium service. You can earn by setting a higher price tag.
In-stream Ads
You can incorporate ads in between the music played through the freemium model. Here you can get two different options to generate revenue.
1. In-content advertisements
2. Displaying an advertisement
No matter whether you have short audio ads, ad breaks in between the audio numbers, in-content ads, or display ads that add more to your total stream revenue.
Time to Provide Subscriptions
If you have sufficient freemium subs who are enjoying the audio platform and streaming experience, you can come to them to withdraw from the freemium model to have an uninterrupted music streaming service. Select the premium ad-free video subscription plan, beginning with a minimal cost. You can even devise multiple OTT pricing plans for various demographics such as families, students, etc.
Make Social Availability
When you consider how music streaming makes money, the primary factors that you’re required to focus on are Smart TV, mobile, consoles, web apps, etc. You can curate content to maximum users; this helps you boost your customer base and entice the desired watching practices with personalization.
Choose the Right Way to Make Money Through Your Music Streaming Platform!
When it comes to making money through music streaming platforms, then there are lots of strategies that you can try. However, money-making techniques are changing continuously, and the key is to highlight the branded audio solution that catches the audience’s attention at all times.
The new era is about competition between YouTube Music, Spotify, Amazon Music, etc. However, Spotify is the top poison in the market with its huge content library. The intimacy and connection with listeners become stronger with the live-streaming launch. Music is no longer limited to enjoyment and pleasure but a way to make money.
Streaming platforms provide avenues for musicians or artists to submit their work and make money. Looking at the growing opportunities, lots of business entrepreneurs are investing in a music streaming app like Pandora, Spotify, or any other as per their music streaming business needs. If you also want to launch your streaming venture online, you have the time now; contact us today for more information right away.
FAQs on Making Money Through Music Streaming Software
How can I make money as an artist using a music streaming platform?
As an independent artist, you can generate revenue through:
- Royalties
- Subscriptions and Premium Content
- Live Streaming and Virtual Concerts
- Promotions
What is a Freemium model, and how does it work for monetization?
A Freemium model offers users basic services for free but includes ads or restrictions. Users can pay for a premium version to remove ads, unlock additional features, or gain exclusive content. This model drives revenue through both ads and subscription fees.
Can I make money through ads on my music streaming platform?
Yes, you can monetize free users by displaying ads:
- Audio Ads
- Video Ads
- Banner Ads
Revenue is generated through impressions and clicks on these ads.
What is the best revenue model for a new music streaming platform?
The best model depends on your target audience, but a combination of Freemium and ad-supported free streaming is a popular choice.
How can I promote artists on my platform to generate revenue?
You can offer artists paid promotions such as:
- Sponsored Playlists
- Featured Artist Sections
- Artist Advertising
What are the benefits of a white-label music streaming app?
White-label solutions allow companies or entrepreneurs to create custom-branded streaming platforms without building from scratch. This model is ideal for businesses looking to enter the streaming market quickly and efficiently.
How do royalties work in music streaming?
When users stream your music, you earn royalties, typically calculated per stream. There are two royalties types:
- Mechanical Royalties
- Performance Royalties
Can I integrate event ticketing with a music streaming platform?
Yes, you can integrate ticketing for live performances, virtual concerts, and exclusive artist events. By offering ticket sales directly through your platform, you provide additional revenue streams, especially for live-streamed shows or VIP access to special content.