ZEITGUIDE TO MUSIC STREAMING 2.0

So what does exclusive content mean in this era of streaming?
Music streaming service Tidal recently announced it had surpassed 3 million subscribers, a nearly sixfold jump in the last year. Much of the surge was attributed to Kanye West’s decision to make his album “The Life of Pablo,” exclusive to Tidal, in which West is an investor. “Pablo” racked up 250 million streams in its first 10 days online. (We’ll leave it to others to calculate how 3 million subscribers can stream an album 250 million times.)
But as of today, the album is available on rival streaming services Spotify, Google Play and Apple Music.
So, it’s not exclusive-exclusive. More like temporary exclusive. The hardback before the paperback. The theatrical release before going to Netflix. “Going forward, you will see some version of windowing in the music industry,” Sony Entertainment CEO Michael Lynton told Billboard. “You’re going to be able to hear the music first in a subscription service and then later in a free service.”
This model is new to music, and a 180-degree switch from the days when free radio play drove record sales and revenue. Music streaming services and artists alike are grasping for a sustainable and profitable distribution model and they might agree on one where consumers pay a premium for advance-access. Whether this approach becomes the new norm remains to be seen. It may assuage hit makers like Adele, Taylor Swift and Gwen Stefani who all kept their No. 1 albums off Spotify.
The question is whether windowing might evolve into long-term exclusivity. There is buzz that Tidal, for instance, may expand its current offerings of music videos and live streams of concerts to include original movies. The idea is to provide an outlet for Tidal’s stable of stars, including West and Rihanna, to create and star in their own films, but also attract more subscribers.
The fight for paying subscribers is as fierce as ever, with Spotify recently hitting the 30 million mark and Apple Music taking on 11 million since the end of its free trials last September. Video could be a new front in the battle. Further, if streaming services start paying artists to produce original content, where does that leave traditional record labels and publishers, who currently scoop up around 70% of the revenue generated by streaming?
Streaming video giants Netflix, Amazon and Hulu have shown that to stay relevant and grow, you need original content. The music streaming world may be taking this lesson to heart.