The music industry is seeing a surge of interest from outside the traditional music sector such as game developers, streaming services, and even casinos. But why?
Music is a multi-billion-dollar industry
It is no shock that the music industry is a multibillion-dollar industry. According to data from 2021, it is thought to be worth around $25.9 billion, with the US market being worth $15 billion on its own! Naturally, the amount of money available and its appeal draw in more than just musicians.
Companies in all industries are realizing that music has the power to connect with a wide range of people worldwide, from millennials to baby boomers. In fact, a lot of businesses are examining the music industry to capitalize on this potential profit.
As a result, we have seen game developers, streaming services, and casinos among others, all take advantage of the wide-reaching possibilities that the industry offers. Many of the businesses that operate in these sectors have quickly recognized the benefits that they can get by entering.
Why is music influential?
Music is a powerful tool that can be used to influence people in different ways. It can evoke different emotions, provide an atmosphere of relaxation or excitement, and even create connections between people. Music has been used for centuries as a way to further stories, attract customers, and promote brands; it continues to do so today.
The Streaming Effect
One of the major reasons for the influx of new companies is streaming music services like Spotify and Apple Music. These services have created an entirely new distribution model for getting music out to listeners; one that favors convenience over ownership of physical albums. It has been found that just 9% of all music sold in 2022 were physical albums. As a result, it has opened up opportunities for all sorts of companies to get involved in the music business.
According to data, 65% of global recorded music is streamed via these platforms, thus making them a crucial part of the industry. This has encouraged companies to leverage this technology in order to get their products into the hands of millions of potential customers around the world.
The movie industry is another sector that has always had an eye on the music industry. Because film studios are always looking for new ways to promote their films, soundtracks have become more and more popular in recent years. Over time, film directors have realized that soundtracks have become just as vital as plots, the stories played out on screen, and the way the actors portray them. Some of the greatest musical moments in movie history can be found in movies like Baby Driver and Guardians of the Galaxy.
The power of these cinematic masterpieces transcends time and continues to inspire generations for decades, which is what makes them so iconic. In fact, there are many film concerts that are organized with live performances by the orchestra, covering great movie soundtracks like Steven Spielberg’s iconic “Jurassic Park,” George Lucas’ epic space opera “Star Wars,” Schindler’s List, and other masterworks of film like “Mission: Impossible” and “The Godfather.”
Movie soundtracks have long served as an inspiration to generations of people, and live performances that feature all the hits made famous by Hollywood offer a fascinating study of the power of cinema music. As a result, there is now greater collaboration between musicians and film businesses than ever before. This has been beneficial to both sides, as it allows for greater exposure for those in the music industry while also allowing studios to promote their films in different ways.
Although the practice of playing music at athletic events is centuries old, it has recently experienced a notable resurgence, especially when it comes to music performed at large sporting events. Unquestionably, one of the world’s largest sporting events is the Super Bowl. Millions of viewers tune in from all over the world to follow the action. But over time, it can be argued that the halftime shows have surpassed the game of football in popularity. This is because we’re not talking about any random musical artists when we discuss the Super Bowl halftime performance. Instead, we’re referring to some of the biggest music industry giants and idols giving a performance of a lifetime.
Numerous great halftime performances have featured artists over the years, including Prince in 1997, U2 in 2002, Michael Jackson in 1993, Diana Ross in 1996, and Beyonce and Destiny’s Child in 2013, among others. Many of their performances on the streaming service YouTube have received millions of views, making them memorable. Because the Super Bowl is essentially an entertainment show, it draws in a larger audience. There are casual fans who aren’t particularly interested in American football or the NFL but nevertheless want to partake in the excitement and see one of their favorite artists in a live performance. Because of the element of music, the event is able to reach an even larger audience that is no longer limited to team supporters, and football lovers, and plenty of businesses benefit from it as a result, such as restaurants and hotels.
Even betting apps seem to be entering the music arena. In preparation for this year’s Super Bowl LVII, one of the biggest sportsbook giants in the US, BetMGM, has made it possible for its members in Arizona to purchase discounted tickets for the inaugural West Fest which will be held at the Phoenix area’s Westgate Entertainment District on February 11. In so doing, the brand officially became the first mobile betting operator to sell concert tickets, gaining a unique entry into the music industry. Recognizing that the number of tickets available for the Super Bowl are limited, leaving out many individuals who would wish to take in the atmosphere of the sporting event or enjoy the thrill of the game by placing a wager on it, BetMGM came through by offering a unique experience that would surely win over its customers. Even though this is only available to users in the state of Arizona, the brand is steadily increasing its footprint in states across the US, very recently launching BetMGM betting app in Ohio, so it is only a matter of time until we see something similar happening from this brand in other states.
Advertising agencies have also been looking to use music as a tool for creating advertisements that are more memorable. This helps them engage with their target audiences in different ways, and ensure their messages are heard. Music can evoke feelings in listeners and help advertisements stand out. When used carefully, big and bold decisions can help businesses stand out from the competition, rebrand, and differentiate your advertising. This has allowed companies such as Apple, Samsung, and Adidas to create ad campaigns that not only feature their products but also feature music that helps to bring the campaigns alive.
Taking Apple as an example, the brand has always emphasized good music in its advertising, and as a result, it has earned a reputation for having good taste in music. One of its most recent songs, “The Greatest,” which was included in a potent advertisement in November of last year, garnered more than 15 million views in a matter of days. The commercial highlights all the ways an iPhone can make places more accessible for those with disabilities. The commercial was well received, and the featured song quickly went viral because of lines like “I am the greatest, I said that even before I knew I was,” and “I rocked the world,” which are frequently used in social media.
Music is a Powerful Tool
Music will always be used as a tool to create emotion and promote products. Different sectors will continue to look for ways to benefit from the music industry, ensuring that its future remains secure. As technology continues to improve, it is likely that more industries will take advantage of the possibilities entering the music industry brings. Therefore, it is important that those in the industry remain aware of these opportunities and cultivate the right relationships with those in other industries. This will ensure music remains a powerful tool for all involved.
While there are a number of companies that have already entered the music industry space, it is clear that there are still plenty of opportunities for those looking to use music in different ways. As technology continues to improve, it will be interesting to see what other industries decide to include soundtracks and songs in their products. Only time will tell how the music industry evolves in the future. In the meantime, you can be sure that many more companies will be looking to take advantage of this powerful tool.