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Music Streaming Boom: 2020 and Pakistan

The music streaming boom in 2020 means there has never been a better time for artists. To sell their rights as music publishing is at its peak. Most countries affected by COVID-19 lockdowns increased in users who engage digitally live streaming via platforms. 

Unlike in Pakistan, the rights to songs produce royalties for various types of licensing and usage. On the radio, covered by another artist, sold on CD or vinyl, or licensed for TV shows, commercials, or films. The four main royalty types include

  • Mechanical
  • Public Performance
  • Synchronization
  • Print Music

The music industry relies on these royalties as a primary form of payment to musicians.However, streaming has overshadowed that all this year. Moreover, the increasing popularity of local content on these platforms is driving market extension. 

Music Streaming Global Market

The music streaming boom in 2020 means there has never been a better time for artists. To sell their rights as music publishing is at its peak. Most countries affected by COVID-19 lockdowns increased in users who engage digitally live streaming via platforms. 

Unlike in Pakistan, the rights to songs produce royalties for various types of licensing and usage. On the radio, covered by another artist, sold on CD or vinyl, or licensed for TV shows, commercials, or films. The four main royalty types include

  • Mechanical
  • Public Performance
  • Synchronization
  • Print Music

The music industry relies on these royalties as a primary form of payment to musicians.However, streaming has overshadowed that all this year. Moreover, the increasing popularity of local content on these platforms is driving market extension. 

Music Streaming Global Market Analysis Report

According to Grand View Research, The global music streaming market size was valued at USD 20.9 billion in 2019 and expanding at a compound annual growth rate (CAGR) of 17.8% from 2020 to 2027. The current market size is estimated at US$24.4 BN.

The audio segment dominated the market, with a revenue share of more than 60.0%. The rising demand for audio content is due to consumer preference while commuting, exercising, or doing household chores. 

The rise in the number of service providers and the wide-scale penetration of smartphones across all the globe is positively impacting the market growth.

Source: Business Of Apps

Spotify’s can lay claim to 36% of the global streaming market. At the time of this writing , 140 million of these are Spotify Premium subscribers. Average hours spent listening to Spotify per month stands at 25 hours. 44% of users listen to Spotify on a daily basis. Over 70 million tracks available on Spotify.

Artists are also going live on video streaming platforms such as YouTube Live, Facebook, Instagram, and Twitter. This trend is adding fuel to the fire in online music consumption and revenue streams.

Artistes, Royalties and Music Streaming

The vast majority of modern artists are cash strapped. One reason is that streaming services aren’t lucrative for artists unless they’re chart-topping names. Music streaming services like Spotify, Apple Music, Deezer, Tidal, and Amazon don’t have a fixed “pay-per-stream” rate. 

Numerous factors affect how much a stream is worth in royalties. These include:

– The listener’s country and location

– Whether the listener has a paid subscription or free account

– The specific artist’s royalty rate

– The relative pricing & currency in different regions

The table below provides an estimate of music streaming royalties per 1 MN streams as an example published on Diito Music . Based on an independent study data from the USA.

PlatformRoyalty
Tidal$ 12,500
Apple Music$ 7,350
Deezer$ 6,760
Google Play$ 6,760
Spotify$ 4,370
Amazon Music$ 4,020
Pandora$ 1,330

Chart on Royalty Estimate. Not 100% accurate. Use only as a guide.

That is to say, your song makes a million streams, but keep in mind that some platforms with lower royalty rates may have more users and a wider reach. So a stream from them might be worth more in terms of exposure and profiling.

Gold Fever and Catalogs

As recently reported by The Guardian. “Bob Dylan’s surprise move this week to sell the publishing rights to his 600 songs, made more than 300 mn, was described by the buyer, Universal Music, as “one of the most important deals of all time.”

Last year, more than $4bn on buying artists’ music catalogs, according to MIDiA Research. That number has boomed this year. Thanks to investors looking to cash in on the increasingly valuable returns of golden hits. The focus is buying while the songs available are at attractive prices.

Key factors that are driving the music streaming market growth include: 

  • The organic selection of digital music services
  • The surge in local online content consumption 
  • Tech-based advancements in the music streaming industry. 

It’s improbable to measure how much an artist can make from a certain number of streams. At the same time, it’s important not to think about streaming services solely as money-making platforms. However, they offer a direct route to new and current fans. 

Suniye Pakistan Catalog 2018 (source: ARY Musik)

Therefore, a digital transformation at ARY Musik television achieved just that in 2018. Achieving the biggest (footprint) in music releases worldwide from Pakistan. Streaming on 34 leading audio and video digital platforms(including Spotify) under the Suniye Pakistan catalog. Introducing new and original songs from Pakistanis all over the world. Made possible largely due to a visionary, Chairman ARY Mohammad Iqbal, and a dedicated team.

Conclusion

To sum up, unforgettable music will sell even at ten times the price. Perhaps for years in a post-pandemic world before the market actualizes. The music streaming boom has finally arrived and soon, the likes of Spotify are to enter Pakistan. A music market rich in its potential for listeners globally and so far underfunded and largely untapped on music (audio) streaming.

Let us make the most of 2020 and beyond.

This blog post is written with Inputs from various sources including Asim Qureshi. FOUNDER Starring Brands. A pioneer in marketing entertainment A Former CEO at Pakistan’s Leading Media i.e ARY and Jang Group.

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M.A.D
Blogger| Digital & Streaming Junkie | Studying & Freelancing in Frankfurt| U/X Designer
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Abdullah
Abdullah

Sir this is amazing please tell more about Ary musik biggest music release n how to participate who to contact ?. I also want to release my song worldwide like these artistes please sir

Abdullah
Abdullah

Sir my audio is ready. I just need a chance please guide me who to contact?

Jehan Ara
Jehan Ara

You are so right. Ive been streaming and listening to music more in 2020.

Maria Spatzy
Maria Spatzy

I love coke studio from Pakistan.. but can’t find it on streaming much..pls tell where

Erum
Erum

Hey thanks for writing I got to listen to Suniye Pakistan on Spotify after this.. please let me know when is the next one I want to send my song. Im from Atlanta.

Sophie
Sophie

Hey nice article. I read the Bob Dylan deal maybe to avoid paying high taxes.. this could be the reason for many artists selling their music

James Alwin
James Alwin

Artistes are ripped off by these streaming platforms that’s why likes of Taylor Swift and many others pulled off…

Don Leo
Don Leo

To sum up, unforgettable music will sell even at ten times the price.” Amen to that please find me a buyer

Margaret
Margaret

Hey good to know Pakistan is streaming its music and you’ve been a part of it too. I actually listened to some after reading. Coke Studio is divine.

Sonali
Sonali

Streaming is democracy. Artists are finally going to accept it. Only the legends will make money now but in future maybe who knows.

Ahmed Sharif
Ahmed Sharif

music is love thanks for sharing this..highly informative

Sonia
Sonia

I wish Spotify comes soon in Pakistan.

John P.A
John P.A

Audiio Streaming rules everywhere

Xing
Xing

You should write about Chinese music scene. Can help

Deepika
Deepika

Hey. can you please tell if there is a list of Coke Studio streaming one can see in one place. Its not on their website

Romario
Romario

Brazilians miss concerts and gatherings the most..Once they open streaming may drop

Faryal Faruqi
Faryal Faruqi

So true. I’ve been on my headphones most of 2020 and beyond.

Yang Ziyi
Yang Ziyi

yes its true. China Also

Justin
Justin

Please share streaming links of Pakistan Music Spotify, Pandora or any other

Laura
Laura

hey good writing. can you please share streaming links of music from Pakistan

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