Is Streaming 2.0 a Revolution or Money-Making Machine for Major Companies?

The term Streaming 2.0 is shaking up the music streaming industry, with major players like Universal Music Group leading the charge. Instead of just aiming for more subscribers, the focus now is on getting more money from each user. This shift is happening through new ways of making money, like catering to super fans, offering exclusive content, and adding extra services. But who wins in this new landscape? Unfortunately, not the average music lover.

Spotify, Amazon Music, and the major labels are all jumping on the Streaming 2.0 bandwagon. They’re hoping to reach new markets in places like China and Brazil while also keeping current subscribers happy with different subscription options. Universal Music Group even predicts that by 2028, there could be over a billion paid music subscribers globally, showing the enormous financial potential of this new era. But where will all that subscription money end up going?

A big part of this new strategy is focusing on the artists themselves, with the goal of making sure they get a larger slice of the streaming revenue. Major music companies argue that this approach helps fight against streaming fraud and fake music generated by AI. However, critics worry that independent artists and newcomers might lose out in this model, since it could give more power to the big labels. And their concerns seem pretty valid.

Exclusive content and fresh subscription models are at the heart of Streaming 2.0. Some platforms, like Deezer and Amazon Music, are already rolling out changes like personalized subscription tiers and special promotions for top artists. By teaming up with Amazon Music and Spotify, Universal Music Group is locking in exclusive deals that might restrict certain artists and content to paying users only.

To make more money, new premium subscription plans are on the horizon. For instance, UMG is working on a “super-premium” subscription with Spotify that might include exclusive content, better audio quality, and even special event opportunities. Tests suggest that in the future, concerts or music documentaries by top artists could only be available on certain platforms, much like in the world of video streaming.