It is time for the music industry to celebrate!
2022 will be an exciting year for the music industry. There are so many opportunities coming up, and we can’t wait! With the triumph of the music industry over recent years, 2022 comes with new challenges, including digital transformation and exploring how to coexist with the pandemic.
Here are some trends to look out for in 2022:
1. Digital Transformation
The rise of streaming services has been a massive success for artists, fans, and labels alike. We have seen the end of physical albums and the rise of streaming as the preferred method of consumption. Streaming services like Spotify, Apple Music, Amazon Prime Music, and others offer incredible value to consumers, giving them access to millions of songs at the tap of a button.
2. Artists & Songwriters – The Next Big Thing?
As more people turn to streaming services, there is no surprise that songwriting is shifting. Many songwriters have taken to social media to share their process, from writing the first verse, chorus, or even the melody line.
As streaming services become more popular, it seems that songwriting is becoming more accessible than ever before. It also helps many artists share their work on YouTube, Instagram, and other platforms. This allows those who want to get into songwriting to do so without prior experience.
Artists like Christopher Sluka, originally signed to major labels for his first three albums (Mitsubishi Meldac and Time-Warner CGD), release all subsequent albums on their independent label and publishing company.
Sluka is an internationally recognized artist who has been captivating audiences all over the world with his enigmatic rock music since he first started singing in public back when it was just a hobby. Now, Sluka has complete artistic control and the freedom to engage with fans directly through numerous internet platforms.
And even though he might not have the leverage of a major label, he now receives 100% royalties!
3. Data-Driven Marketing
While 2020 was a banner year for AI, by 2022, we’ll see the rise of more advanced AI systems that can take on human tasks and work alongside humans. In 2021, data analytics companies such as Jigsaw, Nielsen and Datalogix took center stage as brands began using their data to help drive marketing decisions. Brands like Nike and Red Bull were able to use this data to personalize experiences for customers, which helped increase sales and customer satisfaction.
4. Artificial Intelligence (AI) & Automation
Artificial intelligence is already making its mark in the music industry. Companies like Google and Amazon are now working with record labels to develop AI-driven tools that will revolutionize how music is discovered and promoted. In addition, music services such as Deezer and Apple Music are experimenting with machine learning algorithms that could replace human curators. These changes could lead to a decrease in employment and an increase in efficiency.
5. Artist Representation & Management
There has been a huge shift away from independent artists being managed by one person in recent years. Instead, artists are represented by larger agencies that manage multiple clients, allowing them to serve their clients’ needs better. Some of the largest agencies include WME | IMG, Endeavor, Paradigm, and CAA.
6. Artist Retention
In 2021, major record labels agreed to give back between 20% – 30% of artist earnings to the artists themselves. This means that artists would receive 70% of their earnings, which they can spend however they choose. Although this does seem to be a step in the right direction, there is still a lot of uncertainty around how the system will work in practice.
7. COVID-19 Impact On The Music Industry
The global pandemic has had a huge impact on the music industry. With most live shows canceled due to safety concerns, music festivals have been postponed or canceled altogether. However, it’s not all bad news. Record labels have begun releasing music in “virtual concerts” through video channels like TikTok and Instagram stories. In addition, many artists have turned to live streaming on YouTube and Twitch to connect with their fans during these uncertain times.
2021 was an excellent year for the music industry. By 2022, we’ll see the music industry continue to evolve, and we can’t wait to see what’s next! These trends are just the beginning, and we can’t wait to see what else is in store for us in the future!