Written by Maria ParkerFacts checked by Mason Jones
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Let’s Talk Numbers

Setting aside personal opinions, Recording Industry Association of America (RIAA) data clearly shows a financial downturn in the music industry. The peak was in 1999, with an impressive $26 billion in revenue—a year dominated by hits like Cher's "Believe" and the Backstreet Boys' "Millennium."

In recent years, however, the industry has not come close to those 1999 figures, experiencing a 36 percent decline. But is it fair to blame TikTok and Spotify alone?

US Recorded Music Revenues by Format

Source: https://www.riaa.com/u-s-sales-database/ Years 1999-2023

In recent years, however, the industry has not come close to those 1999 figures, experiencing a 36 percent decline. But is it fair to blame TikTok and Spotify alone?

What Role Does Spotify Play?

Founded in 2006, Spotify eventually climbed to the top of the music streaming industry. In 2023, it reported $14 billion in revenue, with 615 million active users and 239 million subscribers.

However, the journey wasn't smooth. Many artists, including Taylor Swift and Thom Yorke, criticized the platform for how it affected their earnings and creative processes. Swift even removed her music from Spotify for three years, highlighting the debate over the platform's royalty payments. They became the voice of many other artists who complained that the streaming service does not pay nearly enough royalties to the music creators using their platform.

In response, Spotify emphasized the billions it pays to artists annually. In 2023 alone, it distributed $9 billion, covering rights for artists, publishers, labels, and distributors—for a total of $48 billion since its inception.

But the 11,600 artists who are managing to make it to even the $100,000 threshold represent a miniscule share of the overall talent on the platform, and that those figures represent payments to rights holders — not necessarily what ends up in artists pockets.

Spotify is present in 184 markets worldwide—so it’s worth keeping in mind that if artists want people to hear their music, they have to play ball with Spotify.

TikTok and Spotify's Impact on the Music Industry

Consequences of New Business Models

Spotify's business model, along with the rise of TikTok, has reshaped not only how fans engage with music but also how artists create it. A recent study showed that the pay-per-play model and the need for songs to engage listeners within the first 30 seconds have led to shorter, catchier tunes.

The influence of TikTok, promoting brief video content, has also pushed artists to produce more concise songs. A look at Billboard's top 100 songs since the 1960s confirms this trend, with recent top songs averaging just 2:55 minutes, down from 3:59 minutes in the 1990s.

This shift has made it challenging for artists who prefer longer, more meaningful pieces to capture an audience's attention. However, those who adapt by creating shorter, engaging content can gain visibility and potentially secure major opportunities.

Furthermore, changes in label strategies and talent scouting are evident as industry professionals, like Tatiana Cirisano, adapt to the new music landscape. A recent study found that 67 percent of U.S. teens have a TikTok account, with 16 percent using it all the time.

Looking to the Future

Music has been a fundamental part of human culture since prehistoric times and will continue to be essential. However, the industry is clearly undergoing a significant shift in consumption and production. The impact of these changes on future generations and how they will adapt their music to new audiences remains to be seen.

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