InGrooves’ CEO Robb McDaniels says it is bad, at least as is. More specifically it’s bad for artists on a monetary level… Not streaming as such, but the revenue it generates. Ever get paid half a cent for anything?

by Robb McDaniels

First it was, “Fans want to feel it.” Then it was, “Fans want to own it.” Now it’s, “Why own when I can save?”

One of the unforeseen impacts of the global economic downturn on the music industry is the accelerated rate of consumers’ adoption of streaming music. Want to save some money while you sit at home looking for a job? Stream. Want to listen to music on your phone while you take care of the kids? Stream. Do you happen to have your iPhone in your car? Stream. Why download when you can stream almost anything you want at any time, in any place?

As streaming becomes more portable, interactive and affordable to the consumer, fans are rapidly shifting their listening habits to embrace this medium that provides instant gratification. And this means trouble for the already wounded music industry.

Labels, particularly independent labels, have lived off of cash flow for many years now. That’s why advances have always been the name of the game—money is paid upfront and there is a reasonable expectation it will be made back later. But the rise of streaming threatens to cut off the flow and destroy that model.

See more thru Billboard.biz

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This entry was posted on Monday, October 19th, 2009 at 10:15 am and is filed under Music Business, Music Promotion. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.