Music has developed an attention dependency

The attention economy defines and shapes today’s digital world. However, we have long since reached peak in the attention economy with all available free time now addressed. What this means is that previously, when digital entertainment propositions grew, they were often using up users’ free time. Now though, every minute gained is at someone else’s expense. The battle for attention is now both fierce and intense. What is more, it will get worse when much of the population finally returns to commuting and going out, as 2020 was defined by entertainment filling the extra 15% of free time people found in their weekly lives. But there is an ever bigger dynamic at play, one which gets to the very heart of entertainment: the attention economy is becoming a malign force for culture. Consumption is holding culture hostage. 

The increasingly fierce competition for consumers’ attention is becoming corrosive, with clickbait, autoplay and content farms degrading both content and culture. What matters is acquiring audience and their time, the type of content and tactics that captures them is secondary. It is not just bottom feeder content farms that play this game, instead the wider digital entertainment landscape has allowed itself to become infected by their strategic worldview.

The attention dependency goes way beyond media

Do not for a minute think this is a media-only problem. The corrosive impact of the attention economy can be seen right across digital entertainment, from hastily churned out scripted dramas, through to music. Artists and labels are locked in a race to increase the volume and velocity of music they put out, spurred on by Spotify’s Daniel Ek clarion call to up the ante even further. In this volume and velocity game, algorithm-friendly A&R and playlist hits win out. Clickbait music comes out on top. And because music attention spans are shortening, no sooner has the listener’s attention been grabbed, then it is lost again due to the next new track. In the attention economy’s volume and velocity game, the streaming platform is a hungry beast that is perpetually hungry. Each new song is just another bit of calorific input to sate its appetite. 

In this world, ‘streamability’ trumps musicality, but it is not just culture that suffers. Cutting through the clutter of 50,000 new songs every day also delivers diminishing returns for marketing spend. Labels have to spend more to get weaker results. 

Music subscriptions accentuate the worst parts of the attention economy 

Perhaps most importantly of all though, music subscriptions are the worst possible ecosystem in which to monetise the attention economy. In online media, more clicks means more ads, which means more ad revenue. In music subscriptions it is a fight to the death for a slice of a finite royalty pot. A royalty pot that is also impacted by slowing streaming growth and declining ARPU. The music industry has developed an attention dependency in the least healthy environment possible.

This is not one of those market dynamics that will eventually find a natural course correction. Instead, the music industry has to decide it wants to break its attention dependency and start doing things differently. Until then, consumption and content will continue to push culture to the side lines.

It is time to take hold of the wheel

Some years ago, Andrew Llyod Webber said this: “The fine wines of France are not merely content for the glass manufacturing business”. Although those words are of someone from the old world grappling with the new, the underlying premise remains. None of this is to suggest that streaming consumption is not the future. Nor is it to even suggest that all of the changes to the culture of music that streaming has brought about are negative. In fact, it may be that streaming-era music culture is simply what the future of music is going to be. But what is crucial is that artists, labels, songwriters and publishers take an active role in steering the ship to the future rather than simply getting pulled along by the streaming tide.

Virtual concerts: A new video format

The global pandemic thrust the live music sector into chaos, with global revenues falling by 75% in 2020 compared to one year previously. The music industry was rocked by first-order impacts (no concerts, no fan engagement) and second-order impacts (many artists realising that streaming did not add up without live income alongside it). Necessity, though, is the mother of invention and an unprecedented period of innovation and experimentation followed, creating a whole new virtual concert ecosystem. One that presents great opportunity, but that also reflects the flaws of a hastily constructed industry – flaws that must be fixed for the sector to realise its ambition. Rather than the future of live, virtual concerts represent an entire new video format.

MIDiA’s new report ‘Virtual concerts: A new video format’ provides a comprehensive overview of the market with revenues, forecasts, demographics, vendor mapping and industry metrics. The report is immediately available to MIDiA clients. Here are some of the key findings. 

Live streaming of concerts is not new, but the combination of a complex rights landscape and resistance from the traditional live sector stymied the sector’s growth. The fact that technology itself was not the problem is well illustrated by the dynamic growth in live streaming in other content verticals, gaming especially. Since the pandemic’s first impact, there has been a rapid rollout of new live music streaming solutions and companies, enjoying varied success both commercially and creatively. Nonetheless, artists now have a vast array of options at their disposal and the rapid shift is well illustrated by the Foo Fighters’ Dave Grohl joking during his band’s December 2020 high quality, ticketed live streamed concert that the sector had come a long way from artists playing piano in their living rooms earlier in the year.

One of the most important changes was the strong shift in the latter part of the year from free streams to more professionally produced, ticketed events. From June to November 2020, the share of live-streamed concert listings on Bandsintown grew from 1.9% to 40.7%, while the total ticketed revenue in December was up 292% from June. The shift to paid is crucial, especially considering the #brokenrecord debate (arguably the most important second-order impact of the cessation of live music). Traditional live is a scarce, premium product that generates many artists the bulk of their income. Yet the start of the live streaming boom was all about free, an uncanny rerun of when music first went on the internet. With the current wave of COVID-19 worse in many countries than the first, 2021 is set to be another highly disrupted year for the live sector. It is crucial that live streaming can pick up some of the slack as a meaningful revenue driver for artists.

Overall, ticketed live-streamed concerts generated $0.6 billion in 2020 with a flurry of ticketed events in the last two months of the year, including end-of-year spectaculars from heavyweights as diverse as Justin Bieber and Kiss.

Live streaming though has a long way to go, illustrated by the fact that penetration is just 9% and audiences have an early adopter, younger male skew. In many respects live streaming was not ready for primetime when COVID-19 hit. Unlike sectors such as video conferencing and home fitness tech, which had become well established before, music live streaming was a bit of an industry backwater. A whole host of new entrants swept in to tap the new opportunity, while pre-existing ones that had been limping along pre-COVID, gave themselves a new lick of paint.

The vendor landscape is complex and increasingly fragmented. But most importantly, it is characterised by companies wanting to own as much of the value chain as possible and trying to achieve as much as they can before the giants of the traditional live sector get back on their feet.

Live streaming has vast potential – not in some binary live music replacement equation, but instead as a new video format. In fact, live streaming could be to live music what pay-TV is to sports, creating in the long run a market that is even bigger than the core business. But between now and then there is a lot of hard work to be done.

Somos familia ✨ @mahou_es @sanmiguel_es @cervezasalhambra…



Somos familia ✨ @mahou_es @sanmiguel_es @cervezasalhambra @solandecabras #marketing #publicidad #campaign #creative #creatividadpublicitaria #custombranding #brandidentity #cerveza #lamejorcerveza
https://www.instagram.com/p/CJb58SnK1Ws/?igshid=1q9j68i79r660