Published on March 16, 2014
User-centric settlement for streaming? Arnt Maasø, Associate professor, University of Oslo, Norway
Outline Physical era vs. streaming era Challenges for artists and music business Results from research on user- centric settlement
The era of physical units
Artist received a ! direct share of ! a fan’s purchase
My streams Your streams
100 streams1000 streams SUM: 1100 streams ‘Pro rata share’ = personal streams ! divided by total sum of streams =1000/1100 =100/1100 Pro rata model
100 streams1000 streams Pro rata model =1000/1100 =100/1100
90,9% =1000/1100 =100/1100 100 streams1000 streams 9,1% Pro rata model
50% 50% Shared between the artists Miriam listens to Shared between the artists Arnt listens to User-Centric model
Challenges with existing model? Economic disconnect between fans and artists Favors ‘quantitative’ usage Niche artists with niche audience may struggle May inhibit innovation
Results from one sample month (August 2013 + 2012) All streams by all anonymized users of WiMP Music in Norway
Share labels Universal Sony Music WMG & EMI Phonoﬁle Other Share of revenue August 2013 Pro rata model User-centric model Market share inferred from the model, and not based on actual information about price tiers or price-per-stream.
Artists: cumulative share Cumulativeshare 20 % 40 % 60 % 80 % Top 5000 streamed artists August 2013 10 100 500 1000 5000 8,5 % 34,1 % 60,1 % 70,8 % 89,7 % 7,6 % 31,8 % 58,3 % 69,4 % 89,2 % Pro rata model User-centric model
Cumulativeshare 0 % 20 % 40 % 60 % 80 % Top 5000 streamed artists August 2012 and August 2013 10 100 500 1000 5000 89,1 % 69,2 % 58 % 31,6 % 7,9 % 88,2 % 70,4 % 59,7 % 34,5 % 9,4 % User-Centric 2012 User-Centric 2013 Comparison 2012-2013 Note: The data in the 2012-2013 comparison here are ﬁltered for users with more than 100 streams. Data for all other ﬁgures are with all users with more than one stream.
Share of revenue local artists Cumulativeshare 10 % 20 % 30 % Local artists among top 5000 artists 10 100 500 1000 5000 2,7 % 11,1 % 19,0 % 21,5 % 25,4 % 1,6 % 9,3 % 16,4 % 18,6 % 22,5 % Pro rata model User-centric model
International! 70,9 % 29,1 % User-centered model favors local artists 13% ! increase * Percentages here are of the top 5000 artists (accounting for near 90% of all streams), tagged with nationality International! 74,2 % 25,8 % Pro rata model User-centric model
User-centered model favors local artists
WiMP Passion index Streaminginhours Number of users * LOW passion * HIGH passion
Passion index and user-centered model 31 of 100 top artists on the passion index are local 8 of these have signiﬁcantly more (5-800%) streaming by fans in a 30 km radius from where they are from Almost all artists with high passion index beneﬁt from a user-centric model Highlights the importance of developing close fan-artist relations
Fair for artists - fair for fans? May this be an incentive for labels to develop local talent? Added incentive for artists to connect with local fans? Increase legitimacy for streaming services?
Thank you! www.cloudsandconcerts.com Arnt Maasø, University of Oslo <firstname.lastname@example.org> Arnt MaasøXin Jian Ola Løvholm The Clouds & Concerts research project involves: Anne Danielsen (project leader, U of Oslo), Arnt Maasø (project leader, U of Oslo), Yngvar Kjus (post doctor), Anja Nylund Hagen (PhD), Marika Lüders, (researcher, SINTEF), Beathe Due, Johannes Bjelland, Kenth Engø-Monsen, Pål Roe Sundsøy Wenche Nag (Researchers, Telenor Group), Research assistants: Ola Løvholm, Xin Jian, Marc Casanovas, Linn Jakhelln, Gro Kirkeby, Erik N. Strutz, Hanne Tråsdahl, Ragnhild Toldnes, Inger Helseth, Helena Zarifa Pedersen. #sxstreaming
Panel discussion Kjartan Slette! Head of strategy! WiMP Music Arnt Maasø! Assoc. professor! Univ. of Oslo Hedvig Mollestad! Thomassen! Artist Moderator: Inger Elise Mey! Director TONO Trond Tornes! Marketing Dir.! Phonoﬁle #sxstreaming
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