The Music Industry wants solutions. But do Listeners see problems?

The music industry is chasing its next wave of growth, but what if the problems it’s solving aren’t the ones that matter to fans? Tatiana Cirisano of MIDiA explores that while the music industry wants solutions, real innovation will only happen where the needs of artist, listener, and platform align.

The music industry wants solutions. But do listeners see problems?

by Tatiana Cirisano from MIDiA Research

Key takeways from this blog:

• The music industry’s next phase of growth depends on solving real problems faced by multiple stakeholders – not just one group in isolation
• Areas like live music demand, fan engagement, and discovery offer clues about where meaningful overlaps might exist
• MIDiA spotlights potential solutions that could create value for artists, listeners, labels, and platforms alike

History is full of examples of products that failed because they were “solutions without a problem”. The Segway set out to revolutionise urban travel, but for most people, existing modes of transportation worked just fine. Google Glass was a cool product in theory, but nobody was asking to check their email via the inside of their glasses. So far, NFTs have struggled to take off because most examples are novelties, rather than addressing a real or pressing need. Some of these blunders might seem obvious in retrospect, but similar mistakes are all too easy to make. 

This is important to remember at a time when the music industry is on the hunt for next-era growth drivers. The independent music space has hit its limit with streaming, and it is getting harder to break through the noise and build businesses around music that are reliant on scale. It is widely agreed that the music industry needs something different, something new.

However, the low cost of music streaming and the struggle to be discovered are industry problems, not consumer problems. In fact, it is arguable that there has never been a better time to be a music listener. And for a new product, offering, or idea to take off, it has to solve a problem or address a real need for everyone involved – usually meaning artists, listeners, labels, and platforms.

Music “problems” rarely overlap

The first step is to map out what “problems” these stakeholders have in common. It will not take long to realise that there are few areas of overlap. It is also clear that consumers’ “problems” – like finding the right music for the right time – are fairly minor in comparison to the problems faced by streaming services, artists, and labels. Much of this can be traced back to the music industry’s longtime problem of misaligned incentives, which MIDiA outlined in detail back in 2023. In short, labels, artists, and streaming platforms are incentivised by different – and often conflicting – needs, and until or unless that changes, it will continue to be difficult to create positive change for all.

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Finding the overlaps

So, what can be done? The next step is to locate where the overlaps do exist, which are where innovations are most likely to succeed. They include, but may not be limited to:

1. Slowing streaming revenue growth

This is a problem for artists, labels, and streaming services (at varying levels). The solution the music industry is focused on is monetising fans better, by offering them new products and experiences at a premium. However, this exercise should show that those new products and experiences will need to address real fan needs in order to take off (and do not forget that “rising costs of fandom” is a top problem for listeners!). For example, giving fans more social content is not serving a need because this type of content is already ubiquitous. Instead, focus on products that address listener problems – like wanting to be more creative with the music they love without facing takedowns, or being able to see their favourite acts live (more on that next).

2. Demand for concerts exceeds supply

This problem is shared by artists and listeners. The live sector is booming, as music listeners seek ephemeral, in-person experiences with the music and artists they love. However, this sector is also rife with pain points for both artists and listeners. Many artists are unable to meet demand for their shows due to rising costs of touring and the disappearance of smaller venues. Listeners are unable to snag tickets for the shows they want to see or are forced to pay prices many feel are unreasonably high. What solution have we not given attention to yet that could serve both sides?

3. Lack of ownership of fan data

Again, this is a problem shared by artists and labels. Like most of the problems on this diagram, fan data issues are systemic. Artists, labels, and platforms do not always want to share data with each other as a way of maintaining their leverage. But as MIDiA’s Olivia Jones wrote recently, just as a rising tide lifts all boats, a lowering tide sinks them. 

4. Discovery

This is only problem on our Venn Diagram to impact the trifecta of artists, listeners, and labels. Of course, the struggle for today’s artists to get discovered is an existential problem for the industry, while being only a minor annoyance for listeners. However, there is growing evidence that younger listeners are reaching a breaking point with streaming oversaturation, which algorithmic recommendations are not fully solving. Online radio is regaining interest (enter Apple Music’s recent push), and TikTok is full of music tastemakers competing to put their followers on to under-appreciated acts. There is a need to differentiate between gatekeeping and curating, and to give this job the respect it deserves, recognising that most music listeners want to discover new music but do not have time or inclination to do it all by themselves.

The lesson

While this exercise shows that serving more than one stakeholder is difficult, it is not meant to frame things as impossible. Instead, the lesson is that when focusing on innovation, start by identifying the problems in the market – and then find the areas where it is possible to provide solutions to multiple players. This diagram covers artists, listeners, labels, and streaming services, but it leaves out many other stakeholders – live promoters and venues, distributors, and more. Where do their needs align with stakeholders already on this map, and what solutions exist in those overlaps? While this approach takes harder work than the alternative (throwing solutions at the wall and hoping they find enough problems) this is how we drive the industry forward.

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