Streaming is losing steam. It’s time to reimagine music’s future

Streaming was supposed to save the music industry, but it’s leaving artists behind. As streaming is losing steam, it’s time to rethink the model and put creators back at the center of their own success, writes Alexandre Saboundjian, the CEO of Winamp.

Streaming is losing steam. It’s time to reimagine music’s future

Op-Ed by Alexandre Saboundjian, CEO of Winamp

Fifteen years ago, streaming was hailed as the savior of the music industry. Piracy, once rampant and uncontrollable, was finally being tamed by platforms like Spotify, Apple Music, and others. Yet, as we approach the model’s second decade, it’s clear that streaming’s initial promise has faltered. While piracy rates have dropped, the artists themselves—the ones responsible for the music we consume—are being left in the dust.

The Entertainment Retailers Association recently announced that UK music fans spent £2.38 billion on subscriptions to streaming services and physical music – the highest music revenue has been since 2001. However, the industry’s increased monetary value doesn’t seem to be translating to greater financial gains for artists. 

This problem becomes even more acute for artists in non-English speaking countries, where the reach of digital streaming platforms is more limited, and monetization opportunities are fewer.

“the deeper issue lies in the structural flaws of the compensation model”

While it’s easy to blame streaming platforms themselves, the deeper issue lies in the structural flaws of the compensation model. The lion’s share of revenue generated by these platforms goes to the same major labels that once controlled every aspect of the music business, from production and distribution to the manufacturing of physical media. Today, their role is reduced but their financial cut is disproportionate to their contribution. Meanwhile, the artists—the creators of the content—see little in return.

The need for a fundamental shift in revenue distribution

It’s clear that the streaming model, as it currently exists, is unsustainable for independent music creators. The system is broken, and it’s not just about pay rates—it’s about who gets paid and why. Streaming should not be the central pillar of an artist’s income; in fact, it should account for only 30% to 40% of a musician’s total revenue. Artists need to make room for alternative revenue streams, allowing them to diversify their income beyond the constraints of a platform that simply isn’t working for most of them.

“a reevaluation of how we value artistic creation”

This shift requires more than just better royalty rates; it requires a reevaluation of how we value artistic creation. Artists should be at the center of the music ecosystem—not on the periphery, constantly at the mercy of major labels and the decisions of faceless streaming platforms. In a world where technology allows creators to take control of their careers, the enormous profits made by these middlemen have become increasingly unjustifiable. The question now is: What kind of ecosystem will we build next?

Artists as entrepreneurs: it’s time for a new approach

In this new landscape, artists must become more entrepreneurial. They need to engage with their first circle of fans from the outset—not just as passive listeners but as active supporters who can directly fund the creation of music. Whether it’s through small crowdfunding campaigns for recording studio time or selling limited-edition merchandise, there’s a direct route to monetization that offers alternatives to the streaming giants.

The subscription-based model, which has taken hold in other sectors like gaming, YouTube, and influencer culture, could provide a path forward for music. Fans today are accustomed to paying for direct access to their favorite content creators. Why not apply that same logic to music? Subscription-based platforms where fans can access exclusive content, personalized experiences, or premium concert tickets could provide the financial boost artists need.

Moreover, artists should explore new ways to collaborate with brands—whether it’s through sonic branding, licensing, or bespoke compositions. By tapping into these streams, musicians can open up new revenue channels and enhance their cultural relevance. These partnerships can also bolster an artist’s independence and creative freedom, allowing them to build more sustainable careers outside the confines of the traditional label-driven system.

Breaking free from the social media giants

The challenge for artists is also to step away from their dependence on digital giants like Facebook and Instagram. These platforms control access to fan communities, monetizing that access without offering much in return. For artists to thrive, they need to reclaim control over their relationship with their audience. That means cutting out the middleman and finding ways to innovate the fan experience directly.

To make this happen, artists need to become their own digital service providers (DSPs). By creating their own digital environment or partnering with tools that allow them to engage directly with their fanbase, musicians can supplement the revenue they generate from platforms like Spotify. Think of it as having a presence both at a big retail chain (like Walmart) and at your own bespoke store.

This isn’t just about taking control of distribution; it’s about developing deeper, more meaningful relationships with fans. Through these relationships, artists can offer unique, tailored experiences that drive loyalty and, most importantly, provide new revenue streams.

Support and tools for scaling up

The concept of artists managing their careers like businesses is becoming increasingly essential. But running a successful, independent career requires more than just ambition—it requires infrastructure and support. This is where tools like Winamp for Creators come in. By integrating teamwork into their platform, Winamp allows artists to build support teams—whether it’s managers, social media experts, or marketing professionals—that scale with their needs. Winamp even offers a job board to connect artists with the right talent to help manage their growing business.

The ability to scale up or down with a flexible team is essential for modern artists who are trying to juggle the demands of creativity with the complexities of running a business. Just as SAP streamlines business management for companies, we’re aiming to do the same for musicians and music professionals. I believe that this aggregation model, where everything an artist needs can be found in one place, is the future of the music business.

The future Is independent, and it’s already here

The music industry is at a crossroads. Streaming as we know it may have solved piracy, but it’s failed the majority of the creators it was meant to help. The future of music doesn’t lie in an ever-expanding set of platforms controlled by a few large players; it lies in the hands of the artists themselves.

To build a sustainable future for music, we must shift the focus back to the creators—the entrepreneurs, the dreamers, the innovators. Only then will we see an ecosystem that truly supports their creativity, nurtures their independence, and rewards them for their hard work. The streaming model may have run out of steam, but a new, more equitable path forward is waiting to be carved by the artists themselves and Winamp is here to help them get there.