The monopoly of major labels is weakening due to the increasing independence of artists. Today, the numbers indicate that having the backing of a major label is no longer essential to reaching a wide audience.
Luminate, the leading entertainment data and analytics company, provides access to objective, trustworthy information in music, film and television. Every year, they carry out an exhaustive analysis of the state of the music industry.
A particularly notable finding is that 62.1% of artists with between 1 million and 10 million on-demand audio streams in the US use independent distribution. We are in a stage of constant changes in the industry, driven by new technologies. Music streaming platforms are continually adapting and studying new types of consumers, while both companies in the sector and artists must keep up to date with these trends.
A clear way to look at the difference between mainstream and independent artists is to compare their performance on platforms like Spotify and TikTok, and how the latter influences the rankings of the former. Of course, having a great team has its advantages; For example, if you have a contract with Sony, they will be in charge of negotiating with Spotify to include your music in editorial playlists. However, our point is that it is possible to get good results on streaming platforms where the opportunities work differently.
Today, consumers at risk of canceling their subscriptions disproportionately prioritize exclusive content from artists (48%), additional content outside of music (49%), and live streaming of events, concerts or performances (50%). This is one of the key conclusions we can draw. Spotify has recently begun to adapt its content and add more features beyond music, while TikTok was born as a video platform related to music, although it does not focus exclusively on it. However, almost 15% of TikTok users use it for musical purposes.
TikTok's algorithm is designed to promote short, engaging content, making it easy for songs to go viral quickly, all for free since it's based on user-generated content (UGC). A viral sound on TikTok can translate into millions of views and likes, potentially reaching a wider audience in less time compared to Spotify, which relies on editorial playlists and requires a connection between the artist and a curator, which is a manual process. There are more steps involved in going viral on Spotify, which makes the process slower and more complicated.
Furthermore, these contacts will not take risks on projects of which they are not sure of their success; If you are outside the curator's parameters, you will not be selected.
Artists can interact with their fans and establish a closer connection on TikTok, which strengthens the relationship and helps turn fans into super fans. In contrast, Spotify is more distant, making it difficult to create a loyal and engaged community on that platform.
This lack of contractual requirements also supports the creative freedom of artists. Independent artists have full control over their work, allowing them to experiment with different sounds, styles, and promotional strategies that may be more appealing to TikTok's audience. Additionally, these songs often target specific niches or subcultures that are highly active on TikTok.