Streaming vs. Ownership: The Future of Music Culture (Part 5)

We've traveled from the vinyl record through radio and cassette tapes to CD and MP3. Now we've arrived at the present: the streaming era. What have we gained? And what have we lost?

2008-2015: Streaming conquers the world

Spotify launched in Sweden in 2008 with a simple promise: all music, all the time, everywhere – for a flat monthly fee. No piracy, no downloads, just press play.

The concept wasn't entirely new. Services like Rhapsody had existed since 2001. But Spotify combined a huge catalog with an elegant user experience and smart social features.

Today, Spotify has over 600 million users, of which about 250 million pay for subscriptions. Apple Music, Amazon Music, Tidal, and YouTube Music follow behind.

The numbers behind streaming

According to IFPI, global music revenue grew to €35 billion ($38 billion) in 2024. The majority comes from streaming. In the US alone, paid streaming subscriptions reached 100 million for the first time.

But here comes the problem: how is that money distributed?

The pro-rata model

Most streaming services use a "pro-rata" payment model. This means that all revenue goes into one big pool, which is then distributed according to streams.

If you only listen to underground jazz, but Drake has 10% of all streams globally, part of your subscription money goes to Drake. The more popular an artist is, the larger share of the pot they get.

The result: the biggest stars earn millions, while niche artists struggle to earn enough for a cup of coffee.

What do artists earn from streaming?

The numbers vary, but estimates typically say:

• Spotify: approx. €0.003-0.005 ($0.003-0.005) per stream
• Apple Music: approx. €0.007-0.01 ($0.008-0.01) per stream
• Tidal: approx. €0.01-0.013 ($0.01-0.014) per stream

This means a song needs to be streamed 250,000-300,000 times to earn what amounts to a minimum monthly wage. For most artists, that's unrealistic.

The record labels' cut

On top of this, record labels take their share. An artist with a traditional contract might only get 15-20% of streaming revenue. The rest goes to the label.

Independent artists keep more – but they don't have the labels' marketing muscle.

Bandcamp: An alternative model

In the midst of streaming dominance, Bandcamp stands as an alternative. Here you buy music directly, and artists keep 82% of the price (100% on Bandcamp Fridays).

An album for €10 on Bandcamp gives the artist about €8.20. The same music on Spotify would require thousands of streams to match that.

Read about cratedigger.fm and how you can easily discover and support independent music →

Ownership vs. access: What have we lost?

With streaming, we no longer "own" music. We rent access. This has consequences:

1. Music can disappear

Albums get removed from streaming services all the time – due to licensing issues, conflicts with labels, or artists' own decisions. If you don't own the file, you lose access.

2. You're dependent on the service

What happens if Spotify goes bankrupt? If they double the price? If they remove the artist you love? You have no control.

3. Sound quality varies

Streaming often compresses audio quality to save bandwidth. A vinyl or a FLAC file from Bandcamp objectively sounds better.

4. The physical experience is gone

Cover art, liner notes, the tactile feeling of holding a record – all of this is reduced to a small image on a screen.

The power of algorithms

Streaming services use algorithms to recommend music. It sounds practical, but it creates problems:

• "Filter bubbles" where you only hear variations of the same thing
• Favoring "stream-friendly" music – short, catchy songs that keep you on the platform
• Less exposure for experimental artists who don't fit in the boxes

Use our guide to discover new genres on your own →

What can we do?

There are no easy answers. Streaming isn't "evil" – it has made music more accessible than ever. But we can be conscious consumers:

1. Buy music from artists you love

Streaming to discover, Bandcamp to support. When you find something you truly love, buy it. It makes a real difference for the artist.

2. Go to concerts

Live performances are still artists' primary source of income. Your ticket means more than thousands of streams.

3. Buy merchandise

T-shirts, posters, vinyl – physical goods where the artist gets a larger share.

4. Tell others about music you discover

Word-of-mouth is still the most valuable marketing for small artists. Share your discoveries!

The future music economy

There are signs of change. Some services are experimenting with "user-centric" payment models, where your subscription money only goes to the artists you listen to.

NFTs and blockchain technology have promised to revolutionize music rights – but results have been disappointing so far.

Perhaps the solution is simpler: a hybrid approach where streaming and direct purchases exist side by side. Streaming for daily discovery, ownership for the music that truly matters to you.

Conclusion: A circle that closes

We started this series with cratedigger.fm – a project that recreates the feeling of browsing in a record shop. It's perhaps poetically fitting that the solution to the streaming era's problems resembles something from the vinyl era.

Conscious listening. Direct support. Ownership.

Technology has changed enormously from Edison's phonograph to Spotify. But the core remains the same: music is created by people who deserve to be able to live from their art.

It's up to us as listeners to ensure that remains possible.

Om forfatteren

Ras 'Kata' Kjærbo

Ras Kjærbo is an Ableton Certified Trainer and one of the driving forces behind Rumkraft. He teaches Ableton Live and music production, and is passionate about sharing his knowledge on everything from sound design to live performance techniques.

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