Goldman Sachs Predicts Streaming Price Hikes: Implications for the Independent Music Scene
The shifting landscape of music streaming pricing is poised to have significant implications for the independent music sector, according to recent findings from Goldman Sachs. Analysts forecast subscription price increases every 12-24 months, driven by both the maturation of markets like the US and the untapped potential in emerging regions such as India. This projection is part of a broader outlook predicting that music industry revenues will soar from $105 billion in 2024 to nearly $200 billion by 2035, encompassing recorded music, publishing, and live events.
The role of emerging markets is especially noteworthy. In 2024, these territories accounted for 60% of new streaming subscribers, yet penetration remains low at just 8%. This situation presents both a challenge and an opportunity for platforms to innovate and gain traction. For independent artists and labels, this could signify an expanded audience reach, but it also necessitates strategic marketing and localized content to effectively engage diverse listener bases.
Goldman Sachs highlights a notable disparity between music and video streaming pricing trends. While video streaming costs have risen by approximately 15% biennially in the US, music streaming prices have remained largely static. However, growing confidence suggests that price adjustments are imminent, presenting a potential obstacle for independent creators prioritizing cost-effective fan engagement through streaming.
Technology and distribution evolution plays a crucial role in this landscape. For instance, Bandcamp’s decision to restrict merch sales to the US, in response to tariff changes, underscores the complexities of global music commerce. Meanwhile, platforms like Instagram and TikTok are enhancing messaging capabilities, further influencing how artists connect with audiences and market their work.
In response, independent artists are encouraged to explore diversified revenue streams and adaptive pricing strategies, utilizing tools like Beatport’s non-AI remix contests to foster community engagement. Platforms such as SONGLENS, emphasizing curated discovery and editorial integrity, continue to offer valuable pathways for artists seeking to navigate these industry shifts. As the music streaming economy evolves, the focus remains on innovation, equitable access, and empowering creative voices across the global music landscape.
