"Shortly after reaching its revenue peak in 2001, record labels launched a crusade against piracy and illegal downloads without offering consumers legal alternatives. Companies clinging to a business model from another era struggled to survive. The consolidation was brutal, shrinking from six major players to three Universal, Sony, and Warner which in turn swallowed dozens of smaller labels. This trio, known as the majors, now generates nearly two-thirds of global recorded music revenue."
"The arrival of Spotify was the spark that pushed the industry into the digital age. The Swedish company built a model that made listening to music online accessible and legal through licensing agreements with record labels, which take a percentage of advertising revenue. In 2011, streaming generated $400 million; by 2024, it had surpassed $20.4 billion, according to IFPI, the global recording industry trade group."
"Spotify democratized music, acknowledges a senior international executive at one of the three majors. But, the source adds, it also made it harder to make a living from recorded music. Now people have more chances of getting their songs heard, but also of ending up delivering pizzas the next day, says Spanish singer Victor Manuel, a fierce critic of the industry."
The music industry fell into crisis in the early 2010s as physical sales collapsed and labels resisted digital alternatives, triggering consolidation from six majors to three: Universal, Sony and Warner. The three majors now account for nearly two-thirds of global recorded music revenue. Spotify's arrival created a licensed, platform-based streaming model that made online listening accessible and legal and drove streaming revenue from $400 million in 2011 to over $20.4 billion by 2024. Streaming expanded opportunities for millions of artists and increased total payouts, yet revenue distribution remains uneven and many artists struggle to earn sustainable incomes.
Read at english.elpais.com
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