"Blurring lines characterize the difficulty faced by the label industry. MIDiA also observes a "rebalancing of the supplier-retailer relationship" which has landed more negotiating power on the music streaming services. Despite changes in the relationship balance, MIDiA reports that global recorded music revenues have more than doubled from 2015 to 2024. To that, MIDiA has this note: "However, the prevailing strategy that labels are currently pursuing is one of optimisation. Focusing too heavily on optimising for today's model risks unpreparedness for what comes next.""
"Specialise: Having a wide set of competences makes sense for labels with deep pockets. Yet for most, doing a bit of everything makes it hard to do any one thing truly well - these labels should specialise. Innovate: Labels have done a lot to innovate their own businesses, but when it comes to consumer propositions, there is little beyond the leading DSPs."
Global recorded music revenues more than doubled between 2015 and 2024. A rebalancing of the supplier-retailer relationship has placed more negotiating power with music streaming services. The prevailing label strategy centers on optimisation, which risks leaving labels unprepared for emerging disruptions such as generative AI, streaming fraud, and music's struggle for cultural resonance in the attention economy. Labels should follow five tenets — Specialise, Innovate, Nurture, Grow, Diversify — by focusing resources, building consumer propositions beyond DSPs, investing in patient artist development, expanding global reach, and creating flexible licensing and revenue models to withstand future change.
Read at RAIN News
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