Why is the Music Industry So Small?

Why is the value of the music industry so small compared to other forms of entertainment like gaming and television, even though music seems to be everywhere in our lives? This week on the podcast, Dmitri kicks off a new miniseries built around this year's conference theme, "Rising Tide: Grow the Music, Grow the Value" with Jimmy Stone, managing partner of Alderbrook. Jimmy pushes back on the premise and walks through the real numbers behind the music market, including the gap between wholesale and retail revenue estimates. Dmitri and Jimmy dig into why streaming struggled to create the kind of scarcity that once let labels set prices, how Napster and peer to peer sharing permanently changed what people are willing to pay for music, and why platforms like YouTube, TikTok, and Meta may still be underpaying rights holders for how music actually gets used. The conversation turns to where new revenue might come from next, including premium subscription tiers, interactive music features, exclusive concert access, and lessons from Tencent Music's super fan tier in China. They also tackle a big question head on, whether AI will end up being a multiplier or a deflator for music revenue, and why Jimmy lands on multiplier despite the uncertainty around rights and attribution. They close out talking about ABBA Voyage, holographic concerts, and why live human performance might become more valuable, not less, as AI generated music becomes more common. If you're trying to make sense of where music's real value comes from and where it's headed next, this episode is a great place to start.   The Music Tectonics podcast goes beneath the surface of the music industry to explore how technology is changing the way business gets done. Visit musictectonics.com to find shownotes and a transcript for this episode, and find us on LinkedIn, Twitter, and Instagram. Let us know what you think!    Get Dmitri's Rock Paper Scanner newsletter.