This week, streaming and revenue in music are at the forefront of the conversation. We’ll take a closer look at the rising prices of streaming platforms, their revenue growth, and the increasing inequalities created by these platforms. Let’s dive into it together!
#1. A battle among American investors to buy TikTok
A group of American investors claims to have secured over $20 billion to acquire TikTok's U.S. operations. Among them are notable tech figures, including David Baszucki (CEO of Roblox) and Nathan McCauley (CEO of Anchorage Digital). This bidding war follows U.S. legislation requiring ByteDance to divest its American operations or face a ban. Despite mounting pressure, the Chinese parent company insists TikTok USA is not for sale and has not responded to investor inquiries.
Meanwhile, Bloomberg reports that Microsoft is also in talks to acquire TikTok, a deal closely monitored by the U.S. government. Donald Trump has mentioned other potential buyers, including Oracle, and a decision could be made within the next 30 days.
#2. Amazon Music Raises Prices in the US, UK and Canada
Amazon Music has raised the prices of its Amazon Music Unlimited service, with increases of up to $3 per month. Individual subscriptions now cost $11.99 for non-Prime members and $10.99 for Prime members, while the family plan has risen to $19.99.
These adjustments bring Amazon Music in line with Spotify, which also raised its prices in 2024. The increase follows the renewal of Amazon Music’s agreement with Universal Music Group, aimed at fostering innovation and strengthening artist engagement with their audiences. It also reflects a broader trend of price hikes across the streaming industry, as seen with Netflix and Discovery+.
#3. Spotify Sets $10 Billion Payout Record, but Inequalities Persist
Spotify announced a record $10 billion payout to the music industry in 2024, aligning with its ambition to reach one billion paid subscribers across all streaming platforms. According to Spotify’s VP of Music and Audiobooks, this figure marks a significant increase compared to the $13 billion the entire recorded music industry generated a decade ago.
However, this growth highlights ongoing disparities. In 2024, nearly 70% of uploaded tracks failed to surpass 100 streams, while Spotify’s 1,000-stream minimum prevented many artists from earning royalties. The rise of AI-generated music and major labels’ dominance over playlists have further marginalized independent artists.
Additionally, Spotify quietly adjusted its compensation model by classifying most plans as bundled subscriptions, effectively reducing payouts to songwriters and publishers. Meanwhile, Universal Music Group recently struck a direct publishing deal with Spotify, a move that could widen these disparities.
#4. Record Profits, but Growing Inequalities in Music
The music industry reached record profits in 2024, according to the ERA. Surprisingly, music consumption hit a new high, surpassing the revenue levels of 2001. Streaming dominated the market, accounting for 85% of sales compared to just 13% from physical formats, with a 7.8% increase reaching $2.51 billion, solidifying the dominance of Spotify, Apple Music, YouTube, and Amazon.
However, this prosperity hides inequalities. While major labels like Sony and Universal Music Group strengthen their control, small grassroots venues are suffering—125 of them closed in 2024, and many others are operating at a loss. Meanwhile, superstar tours by artists such as Elton John, Beyoncé, and Ed Sheeran helped fill the post-COVID revenue gap.
The rise of AI, new streaming platforms, and the revival of punk could signal a pivotal shift for the music industry in 2025.
#5. Musical Culture takes a new turn
Streaming has profoundly transformed music culture by bringing consumption, creation, and monetization closer together. This phenomenon, which has allowed music to be more widely distributed, has also contributed to what some call the "flattening" of music, where the song often takes precedence over the artist, turning music into background noise. Algorithms and generative AI threaten to intensify this trend, potentially making music even more functional and less meaningful.
In response, many creators are beginning to distance themselves from streaming platforms, seeking greater autonomy and independence. The future of music may lie in more diverse models, enabling artists to reclaim the true essence of their craft, beyond the constraints of algorithms and monetization.
