The album is no longer the unit of musical currency
I’m sitting listening to the new Kings of Convenience album while writing this. As this article points out, listening to albums is an increasingly unlikely thing to in the era of streaming music services.
This isn’t accidental: it’s easy to hop between services when the unit of currency is an ‘album’. But when it’s a regularly-updated playlist that’s only available on a particular platform (e.g. Spotify) that’s a different proposition altogether.
To help listeners find their way in the endless aisles of digital music, streaming providers created playlists — but this new way of listening has created unintended consequences for artists and songwriters. Today, three services make up two-thirds of the streaming economy: Spotify, which has an estimated 32 percent of the market, Apple Music (18 percent), and Amazon Music (14 percent). But Spotify dominates the conversation both because of its market power and its immensely popular playlists. In 2017, 68 percent of all listening on Spotify was from a company or user playlist, according to the company’s 2018 Securities and Exchange Commission filing. Its platform has more than 4 billion playlists, 3,000 of which are owned by Spotify, curated by a mix of algorithms and editors.Source: How streaming made hit songs more important than the pop stars who sing them | VoxIts most prominent playlists have serious cultural power. RapCaviar shapes the sound of hip-hop, and can turn indie rappers into household names. The genre-agnostic, slightly quirky playlist Lorem curates the vibe for Spotify’s Gen Z listeners. In 2020, listeners ages 16 to 40 used playlists as their primary source for discovering new music on the platform, according to the company. So today, a placement atop one of its playlists can make or break a song.
Spotify isn’t shy about the marketing power of its playlists. In its SEC filing, the company wrote as much, crediting Lorde’s breakout global success to her placement on a single playlist: Sean Parker’s Hipster International. But her example may be an outlier. The challenge for most artists is that playlist listeners frequently don’t know who they’re listening to. A song with high completion rates on a playlist might end up on more playlists, accumulating millions of streams for an artist who remains effectively nameless. In the best-case scenario, these streams, which pay very low royalties compared to radio, could help land the song a coveted advertisement, or better yet, pique the attention of Top 40 radio programmers.