Streaming vs. Live Music: How Changing Consumer Preferences Are Reshaping Revenue Models in the Music Industry (A Field-Based Study)
| International Journal of Economics and Management Studies |
| © 2025 by SSRG - IJEMS Journal |
| Volume 12 Issue 7 |
| Year of Publication : 2025 |
| Authors : Arjun Sharma |
10.14445/23939125/IJEMS-V12I7P105
How to Cite?
Arjun Sharma, "Streaming vs. Live Music: How Changing Consumer Preferences Are Reshaping Revenue Models in the Music Industry (A Field-Based Study)," SSRG International Journal of Economics and Management Studies, vol. 12, no. 7, pp. 36-42, 2025. Crossref, https://doi.org/10.14445/23939125/IJEMS-V12I7P105
Abstract:
In recent years, the music industry has undergone a profound transformation as consumer tastes have shifted from owning and physically buying music to accessing vast libraries via streaming services. Global recorded music revenue reached record highs in 2024, driven mainly by paid streaming subscriptions [1]. At the same time, live music events have rebounded strongly from pandemic lows, with concert tours and festivals attracting record crowds and revenues [2]. This paper examines how these changing consumer preferences for streaming and live experiences are reshaping revenue models across the music industry. By reviewing industry reports and financial data from major players (e.g., Spotify, Apple Music, Live Nation), this study analyzes shifts in listener behavior, the impact on artist and label income, and the role of platform economics. Streaming has become the dominant source of recorded music revenue (accounting for nearly 69% of global sales) [1], while live performance revenue is also surging with mega‐tours breaking records [3]. However, the distribution of these revenues poses new challenges: artists often earn only a small fraction of streaming income, and the high costs of touring and ticketing raise concerns about sustainability. This research highlights the interplay between economic theory (e.g., “experience economy” demand) and real-world data, noting that consumer demand for convenience and experiences is simultaneously driving growth in both streaming subscriptions and live music spending [4]. Key challenges include ensuring fair artist compensation, balancing subscription fatigue, and managing “funflation” pricing in live events. Understanding these trends is vital for stakeholders aiming to adapt business models in the evolving music economy.
Keywords:
Music Industry, Streaming Platforms, Live Concert Revenue, Consumer Preferences, Artist Royalties, Revenue Models, Music Monetization.
References:
[1] International Federation of the Phonographic Industry, IFPI: Amidst Highly Competitive Market, Global Recorded Music Revenues Grew 4.8% IN 2024, 2025. [Online]. Available: https://www.ifpi.org/ifpi-amidst-highly-competitive-market-global-recorded-music-revenues-grew-4-8-in-2024/
[2] Live Nation Entertainment, Live Nation Entertainment Reports Full Year and Fourth Quarter 2024 Results, PR Newswire, 2025. [Online]. Available: https://www.prnewswire.com/news-releases/live-nation-entertainment-reports-full-year-and-fourth-quarter-2024-results-302381818.html
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