Obviously, the music industry is constantly evolving. but while the streaming model faces growing criticism, there are still great numbers to take into account. Should we now focus more on live performances and physical sales, leaving streaming behind? That’s the question we’re diving into this week!
#1. Spotify Executives Cash In on Soaring Stock Prices
In 2024, Spotify saw a series of remarkable stock sales by its leadership, amounting to a total of $1.14 billion. These sales include both executive and non-executive board members.
CEO Daniel Ek sold 875,000 shares this year, generating $283 million. Co-founder and former chairman Martin Lorentzon earned an impressive $556.77 million from the sale of nearly 1.5 million shares. They are not alone—other executives have also capitalized on Spotify's soaring stock prices, which surged on the back of strong financial performance and the announcement of its first-ever profitable year projected for 2024.
This wave of stock sales comes as Spotify’s market valuation hit a historic high. While these transactions have been highly lucrative for the company’s leadership, they raise questions about Spotify’s long-term strategic direction.
#2. A Law to Protect Artists Against AI
The TRAIN Act, introduced by Senator Peter Welch, aims to give artists and copyright holders a straightforward way to determine if their creations have been used without permission. Organizations like ASCAP, the RIAA, and BMI have praised the bill as a crucial step toward transparency and protecting creators.
This proposal comes at a time when AI tools are rapidly evolving, often at the expense of artists’ rights. For many, it’s seen as a necessary move to ensure fair recognition of their work.
#3. Live Nation expands into South Africa
Live Nation, a global leader in live entertainment, has unveiled two major projects for 2025: the modernization of the iconic MEO Arena in Lisbon and the opening of a brand-new 10,500-seat venue, The Dome, in Johannesburg.
In Portugal, the company is acquiring a majority stake in the MEO Arena, one of Europe’s largest venues with a capacity of 20,000. Significant renovations are planned to enhance its sustainability efforts and elevate its status as a cultural destination.
In South Africa, The Dome is set to become the country’s largest venue dedicated to live entertainment. Located in Johannesburg, the facility will be designed and built locally to showcase African artists while also attracting international tours. This project represents Live Nation’s first permanent presence on the African continent, underscoring its commitment to strengthening cultural infrastructure and connecting local talent with broader audiences.
#4. Purchasing Vinyl Supports Artists and Independent Record Stores
Buying vinyl from independent record stores benefits several key players in the music industry. Taking Kelly Finnigan's album A Lover Was Born, sold for $24 at a store like Culture Clash Records in Toledo, Ohio, as an example, multiple stakeholders profit from each sale.
The store keeps about $8.49 (35%) per sale, after covering credit card fees and shipping costs. The distributor receives $3.10 (13%), while the manufacturer earns $6.03 (25%). In the end, Colemine Records and artist Kelly Finnigan share the remaining profit, roughly $3.19 each.
Purchasing vinyl from an independent store supports several small businesses and contributes to the overall growth of the music ecosystem, as opposed to the limited compensation artists receive from streaming. This example highlights the enduring importance of vinyl, which continues to resonate with both fans and artists, despite the dominance of streaming platforms.
#5. Music streaming at a crossroads
Streaming is now focused on stability and optimization, particularly in Western markets. Major record labels are banking on price increases and premium offerings, like "superfan tiers," to maximize revenue. Meanwhile, Spotify is taking smaller steps with initiatives such as Discovery Mode and two-tier licensing. However, this optimization strategy comes with a risk: it could stifle innovation and leave the door open for disruptive models to emerge.
The history of piracy in the 1990s, fueled by the industry's lack of foresight, serves as a strong reminder. To avoid a similar outcome, streaming must go beyond margin adjustments and fundamentally rethink the user experience. The future belongs to those who dare to transform before they are forced to do so.
