How we got here

To understand why streaming dominates (and why it has limitations), you have to rewind a bit.

1. The Illegal Download Era (Late 90s – Early 2000s)

This was the industry’s earthquake moment. Platforms like Napster made music free, instant and shareable. Suddenly millions of people stopped buying CDs and started downloading MP3s instead (holding my hands up here although I did continue to buy some physical media).

Within just a few years, convenience won and ownership lost value.

The music industry scrambled to react, but the shift had already happened. People no longer wanted to pay per album. They wanted access to everything.

2. The iTunes Fix (Early – Mid 2000s)

Apple stepped in and offered a compromise. Pay £0.99 per track, download it legally and own it forever.

It worked… for a while but it didn’t fully solve the problem because once people had tasted unlimited, frictionless access even paying per song started to feel restrictive.

3. The Rise of Streaming (2010s)

Then came Spotify and the streaming era. For a monthly fee (or even free with ads), you could access everything. Instantly. Anywhere.

This changed behaviour permanently:

• Music became on-demand
• Playlists replaced albums
• Algorithms shaped discovery
• Ownership became irrelevant

Streaming didn’t just win, it rewired how people value music.

4. The Saturation Problem (2020s)

As barriers to entry disappeared, more music than ever flooded platforms.

• Millions of tracks uploaded every year
• Attention became the scarcest resource
• Algorithms became gatekeepers

At the same time, pay out models meant more music + more artists = smaller slices of the pie.

Streaming scaled consumption but it also diluted earnings.

Streaming still dominates the music industry.

Globally, it accounts for around 70% of recorded music revenue, with hundreds of millions of paying subscribers. In the UK alone, fans spent over £2 billion on streaming in 2025.

Platforms like Spotify, Apple Music and YouTube Music continue to shape how music is discovered. But something important has shifted.

Streaming is no longer growing as fast as the rest of the industry.

New revenue is increasingly coming from:

• Direct-to-fan sales
• Live experiences
• Merchandise
• Physical formats

The industry isn’t just a “streaming economy” anymore. It’s becoming a fan economy.

Streams Don’t Equal Fans

Streaming gives you visibility but visibility doesn’t guarantee connection. And connection is what builds careers.

Here’s the problem:

• You don’t own your audience on streaming platforms
• You’re competing with millions of songs
• Algorithms decide who sees your music
• Revenue per stream is extremely low

In fact, many platforms now require tracks to hit minimum thresholds (e.g. 1,000 streams per year) before generating any royalties at all. So while streaming is powerful for discovery It’s a weak foundation for long-term growth on its own.

The Return of Physical Music (Yes, Really)

While artists have been chasing streams, fans have been rediscovering something else:

Ownership.

Physical music is growing again, and not just as nostalgia.

• UK physical music revenue grew 11.5% in 2025
• Vinyl sales increased by 13–18% year-on-year
• Vinyl has now seen nearly two decades of continuous growth
• Even cassettes saw a 95% increase in sales (yes, seriously)
• 
  

This isn’t just a trend. It’s a signal. Fans don’t just want access to music anymore. They want something they can hold, collect and connect with.

Why This Matters for Artists

Streaming is passive. Physical and direct-to-fan is active. One is background listening.  The other is intentional support.

When someone buys:

• A vinyl
• A CD
• A limited run cassette
• A piece of merch

They’re not just consuming your music. They’re investing in you. That’s the difference between a listener and a fan.

The Smart Artist Strategy in 2026

The artists who are winning right now aren’t ignoring Spotify, they’re just not relying on it.

They’re using streaming as:

• A discovery engine
• A top-of-funnel tool
• A way to reach new listeners

And then they’re building systems that turn listeners into fans:

• Email lists
• Content that builds connection
• Live shows
• Direct-to-fan sales
• Physical releases

Because that’s where real careers are built.

The Bottom Line

Spotify isn’t the enemy but it’s not the answer either. If you treat streaming as the destination, you’ll always be chasing numbers. If you treat it as the starting point, you can build something much bigger.

Streams might get you heard. Fans are what keep you going.

Quick Takeaways

• Streaming dominates, but growth is shifting elsewhere
• Most artists earn very little from streams alone
• Physical music and direct-to-fan sales are rising again
• The future is about owning your audience, not renting it

If this resonates...

it might be time to rethink your strategy. Because building a music career today isn’t about gaming algorithms.
It’s about building connection, trust and momentum.

That’s exactly what I help artists do.

👉 Drop me a message and let’s see how we can grow your fanbase properly.