Is that 30% cut from Apple/Spotify/Google really that big compared to what record stores, factories and whatnot that was involved in physical CD sales, took?
In music (as opposed to apps), it’s not about a 30% cut, and more about a $10 _cap_ on monthly music spend by consumers. That $5-10 needs to be split across all the artists on the streaming platform in proportion to their streams. And consumers are listening to far more music these days.
A lot of people hear this and say: “well, I never spent $10/mo on CDs”. Sure, but some people used to spend $100s/mo, and now they don’t need to. I’d bet that music superfans/whales were once a very important revenue stream, just as they are for alcohol, sports teams and mobile games (likely less extreme than games though).
A lot of people hear this and say: “well, I never spent $10/mo on CDs”. Sure, but some people used to spend $100s/mo, and now they don’t need to. I’d bet that music superfans/whales were once a very important revenue stream, just as they are for alcohol, sports teams and mobile games (likely less extreme than games though).