Music streaming services are a great way for fans to access, consume and discover music on the Internet. They also offer bands and labels great ways to get discovered, build a fan-base, and, for some, there is even some money to be made. Unfortunately there are many misunderstandings about the different services on the Internet and this post will (hopefully) clear up some of the questions that Bandzoogle members, and other DIY musicians and indie labels might have.

So, what exactly are “streaming services”?

The “ownership” of music has become less relevant over the last years. Many people (myself included) don’t feel they need to own any CDs, vinyl records and mp3s if most music is available on the Internet to listen to. Ownership results in maintenance and responsibilities: we have to clean records and make sure they don’t get damaged. We have to back up our mp3 collection and make sure we keep the format up to date (who knows if mp3 as a format will still be relevant in five years ?).

A great alternative to the above is using a music streaming service to access music. The files are stored “in the cloud” and we only access them through the Internet as opposed to owning them. Typically, you will not pay every time you listen to a track but you will pay a subscription fee, or there will be advertising that you will be exposed to in order to listen to the music for free.

What is important to understand (and this is where it gets tricky) is that there are basically two types of services: “radio” and “on-demand” streaming.

The “radio” option is borrowing its name from a technology it has little to do with, but it refers to the fact that it’s more of a hands-off experience. A “radio” streaming service will play a music selection that you cannot directly decide. You might chose a genre or an artist you like and tracks will be streamed to you that are similar to what you have selected. It’s a music discovery experience to help finding new music based on what you already like. The only influence on what you will hear is that you might be able to skip or rate what you are listening to (helps the service personalize your playlist) but you will not be able to decide exactly what is playing next. Streaming services like Pandora and Last.fm fall under category “radio”.

“On-demand” streaming is a more active music listening experience where the listener can directly decide on what they want to listen to. It feels and often looks like an online jukebox where you can listen to specific tracks, whole albums or build playlists.  These kind of offerings can really replace a CD collection: if the service has all the music that you like there is no need to own the recordings any more. Spotify, Rdio, Rhapsody, and MOG are examples of an “on-demand” streaming service.

The reason why it’s very important to understand the difference between those two types of services is that the licensing and royalties structure work very differently in each one. Without going in too much details, a “radio” service would only pay a fraction of the royalties an “on-demand” service is paying, due to the different type of music consumption in each service. Also, a “radio” service might pay the royalties to a collection society (such as SoundExchange in the US) and an “on-demand” service might pay steaming royalties directly to the artist or label. All this also depends on the country the service is operating in. And that explains why some services are not available in countries where agreements are not in place. Confusing, I know.

As an artist, how can my music get on one of the streaming services?

Just like traditional record shops, most streaming services don’t deal with artists or smaller labels directly.  This is because very small teams run those companies and they do not have the resources to deal with thousands of artists every day. There are some companies out there that might be able to help you get on some of the streaming services; ReverbNation, CD Baby, Ditto Music and Tunecore are popular with DIY musicians, and companies like IODA, The Orchard and IRIS deal mainly with independent labels. Keep in mind that they might not be able to get you on all the different streaming services.

Is it really worth it that I add my music to those services?

There have been many discussions on the web about the amount of money that is paid out to artists by streaming services and those numbers seem to be low. But they aren’t. Every one of the big streaming services (certainly the ones mentioned above) are paying out millions of dollars every year to the music industry. There are a lot of misleading articles out there (such as this one) that make it look like the money paid out is very small. But, I like to make the comparison between traditional FM radio stations and streaming services: the digital services pay out much more to artists and labels per listener than the FM equivalents – and in the U.S. the FM stations are not paying anything to the artists (only to songwriters).

One thing I hear a lot is that music streams might cannibalize sales of music and therefore some artists are understandably hesitant to make their work available for streaming. I have not yet seen any hard evidence that anyone sells less music because fans were able to stream their music. In fact, music streaming is a great way to promote some of the products that cannot be digitally delivered through the Internet such as tickets to gigs, merchandise or limited edition premium CDs/LPs.

So should your music be available for streaming? I think every artist should make sure their music is available on the new services. Other than the fact that there is ultimately some money to be made, there is a much more important argument: your music has to be where the fans are so the “old” music industry don’t even have the choice to fight this development and progress. The days where artists and labels can control the music and decide where fans will find and consume it are over. This might not always be advantageous for the musicians, from an artistic or financial point-of-view, but fighting this development is not only hugely frustrating but also a waste of time. Every musician is an entrepreneur, and part of that means you have to understand your market and be reactive to changes quickly.

Looking forward to feedback and questions: feel free to leave comments here or contact me on Twitter or my blog.

One area that is highly interesting from my point of view are ‘music delivery services’. That’s what I call sites and services that can deliver recorded music to me, may as be as a permanent download or as a stream. Also, looking from it from an North American angle, I wanted to see what is happening on this side of the world. As I posted before, unfortunately most of the excitement in terms of digital music is not happening in Canada so my Ace VPN account came in very handy when I needed to pretend to the in the US to access the American services.

Even though there are a lot of new on-demand streaming services starting right now it seems like almost none of them are actually doing anything differently: many of them are web-based and offer mobile apps, cost $10 per months with a three day free trial, and you can stream as many tracks as you want on-demand. I understand that most of those features and mechanisms are actually dictated by the record labels which is a sad development: having ‘suppliers’ decide on business models will never encourage innovation and creativity which is what the industry needs more than anything.

If exciting, disrupting, user-friendly and useful are the criteria then I really want to mention three ‘music delivery services’ in this post:

1. Playdar

I’m not going to pretent that I fully understand what Playdar could do but I love what I can see so far. They call it a ‘Music Content Resolver’ which means that Playdar is a technology that can find music for you, may it be on your computer, your local network or on other music services.

The key is that Playdar is an open-source technology and anyone can either use Playdar to find and stream music within their application or build plug-ins so Playdar can find music in new places. Playdar is neither useful or user-friendly at this point but Richard Jones (Last.fm co-founder and one of the guys who started Playdar) told me that there should be a desktop application soon.

2. ExtensionFM

I love mp3 blogs and there are a quite a few I’d like to check on a regular basis. Call me lazy but I just can’t check 20+ sites every week to see if there is anything new on there that I might like. Also, I will have to download it all and add it to my iTunes. Oh, and of course having to listen to it as well.

ExtensionFM is a great solution for this. It’s a Chrome plug-in that automatically adds mp3s that are available from websites you select to your ExtensionFM library. It then checks on a regular basis if there are new mp3s available from these sites and you can listen to then straight in your browser. Just like the HypeMachine it does not allow you to download the tracks but you can go to the actual mp3 blogs later and download the mp3 from there.

ExtensionFM does something similar to Peel which I have written about on here before. What I like about ExtensionFM is that it’s all happening in the ‘cloud’ and there is no need for me to download anything. I’m desperately trying to move away from having any files on my computer and this is another step toward my cloud based entertainment world.

ExtensionFM is certainly a disrupting concept; record labels as well as mp3 blogs will potentially not agree with the way ExtensionFM finds content and streams it.

3. Spotify

I will not write a blog post about Spotify, there are enough out there. We can’t really call Spotify exciting any more but it’s the most useful and user-friendly music services out there;  I now use it almost exclusively for my music consumption needs. A UK credit card and £10 per month make it possible. If you have access to those two things then you should subscribe to Spotify right now.

I also talked about my trip to Toronto for Canadian Music Week and what I’ve been up to there.

You can listen to all this here.

1. Clues ‘Perfect Fit’
2. Oh No! Oh My! ‘Skip The Foreplay’
3. Ape School ‘Wail To God’
4. Asobi Seksu ‘Familiar Light’
5. The Twilight Sad ‘Three Seconds of Air’
6. Tim Hecker ‘Sea of Pulses’
7. Cathode ‘Stabiliser City’
8. Bat For Lashes ‘Glass’
9. Handsome Furs ‘What We Had’
10. A.C. Newman ‘Take On Me’
11. Those Dancing Days ‘Those Dancing Days’
12. Mount Eerie ‘Flaming Home’
13. Lawrence ‘Rabbit Tube’ (DJ Koze Remix)

Spotify is a streaming music service that gives listeners free and legal access to millions of tracks via their desktop client.  It’s a service that has proved popular amongst early adopters and is already changing the way that many people access music.

Many readers of my blog will be aware of all the sites below so this might be more relevant listeners of my show on Tide 96.0 in Hamburg.

First of all, if you want to discover music easily on the internet you of course need a Last.fm account. I’m scrobbling everything I listen to to my Last.fm account in order to get events and new music recommended to me automatically by the system. This is a must have.

Over the last few months Spotify has become an essential tool for many people to listen and discover music. I used to use it only to listen to tracks that I knew already but more recently I started using the the shared playlists to find new tracks – I’ve started a heute:pop:morgen collaboratice playlist, feel free to add tracks.

I’ve been talking about Peel before on here. It is basically a software that automatically goes through a bunch of mp3 blogs and finds all the mp3s for you so you can easily download and listen to them. It safes me a lot of time every week when I want to find new songs to play on my show although I still have to go through a lot of tracks that might not be suitable for heute:pop:morgen. Mp3 blogs that I check out regularly include  Captain Obvious, Music Is Art and Song By Toad.

I actually still like reading print magazines but after my subscriptions ran out (I must have had at least 10 at some point) I never renewed them. I don’t mind paying for them but having all that paper around is a bit of a inconvenience sometimes. I pick up (print) magazines when I travel but don’t read any on a regular basis any more.

As you can see, what I produce every week is a very ‘traditional’ way of recommending music: putting together 13(ish) tracks, talking about those (amonst other topics) and playing them on the radio. But as much as I enjoy creating this I also still appreciate this as a way of finding new music: the BBC shows are something I listen to on a regular basis but only after they went on air in the iPlayer or (where available) as a podcast.

What am I missing?