Co-evolution between streaming and live music leads a way to the sustainable growth of music industry : Lessons from the US experiences

Abstract

While digitization of music, particularly streaming services, has gained increasing popularity, it has also led to a steady decline in the revenues of recorded music industry. This is causing strong concern regarding a potential collapse of the music industry comparable to other print media industries such as newspaper and book publishing.

However, recent changes in the music industry initiated by a resurgence of the live music industry are giving rise to some expectations for the survival and growth of the music industry. The parallel paths of increasing popularity of streaming services and a resurgence of live music suggest that these two dynamics are working together in a co-evolutionary way toward the sustainability of the music industry.

This paper attempts to elucidate the co-evolutionary dynamism between the increasing popularity of streaming music and the resurgence of live music.

An empirical analysis of monthly trends over the period of the last three decades in the US music industry by its sectors revealed that (i) the co-evolution between streaming and live music industries has functioned well over the last few years, (ii) the live music industry has incorporated a self-propagating function by assimilating innovations previously initiated by digital music, (iii) given the above co-evolution, the recent resurging trend in the music industry can be sustained, (iv) the advancement of digital innovations such as artificial intelligence, machine learning, fintech, virtual reality, big data, and social media by enabling such coevolution have transformed the live music industry into a “live-concert-streaming music industry” (LCSMI) that further enabling the participative creativity of its stakeholders. For these collaborative and cultural industries to function in harmony, trust between its participating stakeholders is very crucial.

This analysis suggests the significance of a trust-based ICT-driven disruptive business model (IDBM) with a consolidated challenge for social demand (CCSD) for the development of cultural industries.