What's nice to see is that the recording music business seems to have accepted the internet as a part of life now. They're embracing online approaches to building an audience, spread the word, and even as the place where the recordings themselves are heard.
As a result, streaming has shot up as the most profitable part of the recording business in the United States.
2. The Role of the Labels
However, just because it's all online, doesn't mean it's free. Record labels continue to be a major investor in talent, since reaching a mass audience still requires significant investments, even though the platforms have changed.
It means that labels are now investing in artists as brands, and not just in the recordings as a separate entity – which also means they like their cut on the artists' revenues to come from more than just the recordings.
The goals of the artists tend to be much bigger than just releasing one album, so the labels do their best to help artists reach those achievements by introducing them to worthy collaborators and extensive industry network.
Easy distribution of music and social media platforms have sure made putting your music out there more achievable, but it also means the market place is much more crowded. The value of marketing and clever engagement campaigns has actually increased dramatically.
The findings presented here draw from a report published by the RIAA & IFPI, called Investing in Music.