Digital will drive music industry revenue growth in 2022
The trends for 2022 music industry revenue growth indicate some really interesting digital drivers. Overall industry revenue is expected to increase, specifically in the blockchain and NFT sector, streaming platforms, and increased exposure abilities for independent artists. There will be more growth in the platforms connecting artists directly to fans.
How digital is driving music industry revenue growth
Some of the digital tools driving music industry growth include: blockchain systems and exchanges, social media video spaces like Tik Tok, streaming platforms such as Patreon, Twitch, and Mixcloud, and live concert streaming platforms like Mandolin and Virtuosica.
The ever changing social media landscape has provided new tools such as audio platforms like Clubhouse and Spaces. This digital audio spaces give back power to the voice in exciting new ways and allow people a very unique gathering space that wouldn’t ever have had the chance to meet otherwise.
In the video space we have TikTok gaining even more traction and particularly among artists and musicians. TikTok announced having over 1 billion users as of September 2021 with no signs of stunted growth going into 2022. This social media platform focused on video once again provides a personalized discovery process for the individual user to cultivate a feed that is completely aligned with their interests.
Streaming platforms like Twitch and Mixcloud gave DJs a space over the course of the pandemic to come into the digital world. And concert live streaming platforms like Mandolin and Virtuosica are gearing up to take center stage, with more need arising for remote live music streaming and hybrid concerts. In 2022, we will be seeing a lot more virtual event representation.
What it means for independent musicians
For independent artists, self-publishing and releasing music has become easier than ever before. The digital services arising have the effect of cutting out middlemen in the industry (i.e. record labels). This is vital in creating more opportunity for musicians to get “discovered” by real audiences and fans.
However, this environment may mean that artists will need to diversify their portfolios a bit. An independent artist has a lot of potential to make a stable living, however, it may need to come from different income streams. Artists will need to be dynamic in order to adapt to the changing environment and be their own bosses.
This year will be a moment in which independent musicians will be able to recognize and realize the growth of the industry if they are willing to go out there and catch a share of the market for themselves.
Are live music streaming + fandom the next big thing?
Streaming will continue to grow into 2022. We are seeing established artists posting their live performances and behind the scenes footage as well as streams from home that feel more personal and authentic. In a way, streaming has allowed artists to humanize themselves and make themselves a bit more accessible to fans.
It is true that there will be a huge digital music presence but as the world opens back up. But, in tandem, we will see a huge demand for live concerts since the world has been starved of the live music experience for quite some time.
In terms of fandom, sites like Patreon and Bandcamp have been gaining so much traction because they are allowing people to drive value straight from their fan base and cutting out the middlemen. Blockchain will further this idea of self creating, determining, and publishing value. NFT’s have already been seen, but they will truly take off once there is some level of trackable digital rights management built into the NFT system and more undertsanding of their clear purpose and value to musicians.