From Radio to Streaming, music listening habits surely impact the music industry entirely. The resurgence of debates around payola shows how radio still has it, streaming platforms battle shows how important the user base is and superfans’ influence is growing, even passed online engagement.
#1. More Music Companies rally against OpenAI
The legal pressure on OpenAI keeps growing, and this time, we’re looking at the Indian music industry. Major labels like T-Series, Saregama, and the Indian Music Industry (IMI) have asked to join an existing copyright lawsuit against OpenAI, raising concerns about the unauthorized use of sound recordings in AI training. The lawsuit, originally filed by Indian news agency ANI, has already attracted several media companies and book publishers.
This case adds to a growing list of legal battles OpenAI faces worldwide, including lawsuits from music publishers, book authors, and news organizations. While OpenAI argues its practices fall under "fair use," recent court rulings suggest that AI companies may face an uphill battle in defending these claims.
The fight over AI and copyright is far from over.
#2. Superfans Experiences Beyond the Screen
Fan engagement is growing and shifting, with immersive in-person events becoming a major trend in music monetization. Labels and streaming platforms are tapping into superfans’ desire for connection by hosting official fan events, even without requiring the artist’s presence. From Olivia Rodrigo’s album release parties to BTS: The City Las Vegas, these experiences create deeper fan communities while generating new revenue streams.
With concert ticket prices soaring, in-person activations provide an alternative way for fans to engage with their favorite artists. Whether it’s pop-up exhibitions, fan club nights, or city-wide festivals, these experiences are proving to be a powerful tool for sustaining superfandom—no VIP ticket required.
#3. The Latest on Payola Bringing Back on the Radio Royalties Debate
The FCC has issued a new enforcement advisory targeting payola, this time focusing on radio stations allegedly pressuring artists into free performances in exchange for airplay. The agency is amplifying surveillance, warning that even station employees could be held accountable.
Meanwhile, the debate over radio royalties is heating up again in Congress. The American Music Fairness Act, which would require terrestrial radio to pay royalties on recordings, has been reintroduced—but it's already facing pushback from major broadcasters. With both issues under the spotlight, the radio industry could be in for some big changes.
#4. Spotify Finally Turned a Profit, How?
Spotify closed 2024 as a profitable company for the first time, a major milestone for the streaming platform. While some see this as proof that the streaming business is now sustainable, Spotify’s profitability is really a result of strategic moves that have reshaped the industry.
As MIDiA Research highlights, the company spent years prioritizing growth, expanding into new markets, and educating consumers about streaming. But its real breakthrough came from increasing its gross margin. Spotify negotiated royalty discounts tied to non-music content, introduced bundled subscriptions, and launched Discovery Mode, a system where rightsholders trade a portion of their royalties for better algorithmic promotion. These changes helped Spotify shift some costs onto labels while increasing its own profitability.
With these strategies in place, Spotify is set to be even more profitable in 2025. Proving that small, incremental changes can add up to a major power shift in the industry.
#5. How Come Apple Music has a Better Reputation than Spotify
Spotify may be the biggest streaming service with 640 million users, but Apple Music has managed to win over the industry as the “good guy” of streaming. While Spotify faces constant criticism over low royalty payouts, AI-driven features, and CEO Daniel Ek’s business moves, Apple Music has positioned itself as an artist-friendly platform with high-profile sponsorships like the Super Bowl Halftime Show, exclusive interviews, and curated editorial content.
Apple Music’s marketing strategy heavily integrates music culture, giving artists major visibility through radio-style content, exclusive partnerships, and features like its 100 Best Albums list. This builds goodwill, even though its per-stream royalties ($0.0061) aren’t industry-leading.
Spotify, on the other hand, focuses more on being a general audio platform, investing in podcasts and AI-powered recommendations. While its model optimizes for total payouts to the industry, its image problem persists—highlighted by controversies over artist payments and AI-generated content.
In reality, neither platform is a perfect champion for artists. But Apple Music’s consistent investment in artist branding and music culture keeps it in the industry's good graces—something Spotify has yet to crack.
