The Luminate Midyear Music Report for 2024 offers a wealth of insights for independent artists and labels, providing a comprehensive view of the music industry landscape. By examining this data closely, indie artists can identify key trends, growth opportunities, and strategies to enhance their presence in an ever-evolving market.
The report highlights the continued growth of streaming as the dominant form of music consumption. Global on-demand audio streaming increased by 15.1% compared to the first half of 2023, reaching a staggering 2.29 trillion streams. This massive volume of streaming activity presents both challenges and opportunities for independent artists. One of the most encouraging findings for indie artists is the increasing share of streaming success they're achieving.
Streaming Dominance and the Rise of Indie Artists
Independent artists are capturing a significant portion
of the mid-tier streaming market. The report shows
that 62.1% of artists who accumulated between
1 million and 10 million U.S. on-demand audio
streams in the first half of 2024 were independent.
Furthermore, the share of indie artists earning more than 500 million on-demand audio streams increased by over 2% compared to the second half of 2023. This growth at the higher end of the streaming spectrum indicates that independent artists are not only finding success in niche markets but are also breaking through to achieve mainstream levels of popularity.
The success of indie artists in the streaming realm can be attributed to several factors
Direct-to-fan relationships
Independent artists often cultivate strong, personal connections with their audience, leading to more engaged and loyal listeners.
Playlist culture
Streaming platforms' curated playlists and algorithmic recommendations have leveled the playing field, allowing indie artists to reach new listeners alongside major label acts.
Authenticity and niche appeal
Indie artists often cater to specific genres or subcultures, attracting dedicated fan bases that consume their music more intensively.
Social media savvy
Many independent artists excel at leveraging social platforms to build their brand and promote their music directly to fans.
To harness this phenomenon, indie artists should focus on:
- Consistently releasing high-quality music to maintain engagement and trigger algorithmic recommendations.
- Engaging with fans across multiple platforms to build a strong, loyal following.
- Collaborating with other indie artists to cross-pollinate fan bases and increase visibility.
- Targeting niche playlists and building relationships with playlist curators.
- Analyzing streaming data to understand listener demographics and tailor marketing efforts accordingly.
The Rise of the Mid-Tier Artist
The report introduces the concept of the "mid-tier artist" - those consistently earning millions of streams and redefining success in the streaming age. This category saw significant growth, with 29,253 more artists reaching the 1-10 million on-demand audio streams tier in the first half of 2024 compared to the second half of 2023.
The report highlights "mid-tier artists" who
earn millions of streams, redefining streaming
success. This group surged, with 29,253 more
artists hitting 1-10 million streams in early 2024
compared to late 2023.
For independent artists, this trend represents a substantial opportunity. The mid-tier success bracket is becoming increasingly attainable, offering a viable path to sustainable careers without necessarily achieving superstar status. To capitalize on this trend, indie artists should:
- Set realistic, incremental streaming goals and celebrate milestones along the way.
- Focus on building a dedicated fan base rather than chasing viral hits.
- Develop multiple revenue streams beyond streaming, such as merchandise, sync licensing, and live performances.
- Collaborate with other mid-tier artists to expand reach and share resources.
The emergence of the mid-tier artist category is reshaping the traditional music industry hierarchy. This new stratum of artists occupies a space between viral sensations and established superstars, creating a more diverse and dynamic ecosystem.
For many, achieving mid-tier status represents a sweet spot of artistic and financial sustainability. The growth of this category also suggests a shift in listener behavior, with audiences increasingly willing to explore beyond mainstream hits and invest time in discovering and supporting emerging talent.
This trend not only benefits artists but also enriches the overall music landscape, fostering greater diversity, creativity, and innovation in the industry.
Genre Diversification and Global Opportunities
The report provides insights into genre popularity across different markets, revealing opportunities for indie artists to expand their reach globally. For example, reggae and jazz over-index in France, while country and Latin under-index. This information can help independent artists target their music to receptive markets and potentially find success in unexpected territories. To leverage these global opportunities, indie artists should:
- Research genre preferences in different markets and tailor promotion efforts accordingly.
- Collaborate with artists from other countries to tap into new audiences.
- Utilize streaming platforms' tools for analyzing listener demographics and locations.
- Consider creating multilingual versions of songs to appeal to broader audiences.
The Power of Short-Form Video
The report emphasizes the growing importance of short-form video (SFV) platforms in music discovery and promotion. 76% of music listeners have watched short-form videos, while 22% of artists have posted to these platforms. This presents a significant opportunity for indie artists to increase visibility and engage with fans.
The report highlights the booming role of
short-form video in music discovery. With 76%
of listeners watching, indie artists have a golden
chance to boost visibility and fan engagement!
Notably, certain genre fans are more likely to create and post short-form videos. For example, J-Pop and K-Pop listeners are 59% more likely to post short-form videos compared to the average music listener, while Hip-Hop/Rap and Latin listeners are 41% more likely. To capitalize on this trend, independent artists should:
- Create engaging, shareable content for platforms like TikTok, Instagram Reels, and YouTube Shorts.
- Encourage fan-created content and user-generated challenges around their music.
- Collaborate with influencers and other artists on short-form video platforms.
- Use short-form video to give behind-the-scenes glimpses and build personal connections with fans.
Physical Music and Sustainability
While streaming dominates, the report shows that physical music still matters, particularly for super fans. The top 10 best-selling albums of the year saw an average of seven different vinyl variants per title. This trend offers opportunities for indie artists to create special, limited-edition physical releases that cater to their most dedicated fans.
Interestingly, the report also notes that 37% of physical music purchasers in the U.S. cite sustainability/re-usability as causes they care about. This is 26% higher than the average U.S. music listener. For indie artists, this presents an opportunity to align with fan values by:
- Offering eco-friendly packaging options for physical releases.
- Creating multi-purpose or reusable merchandise.
- Partnering with environmentally conscious manufacturers and distributors.
- Communicating sustainability efforts to fans, potentially increasing brand loyalty.
Live Music and Gaming: New Frontiers for Fan Engagement
The report highlights the significant impact of live music events on local streaming consumption. The median event yielded a 42% growth in local DMA (Designated Market Area) on-demand audio streaming during the week of an event. This underscores the importance of touring and live performances for independent artists, not just for immediate revenue but also for boosting overall streaming numbers.
Additionally, the report touches on the growing intersection of music and gaming. For example, Metallica's Fortnite takeover led to a 20.1% increase in global on-demand audio streams for the featured songs and a 6.2% increase for their wider catalog. While indie artists may not have access to such large-scale collaborations, this data points to the potential of gaming partnerships and virtual concerts as powerful promotional tools. To leverage these trends, independent artists could:
- Prioritize live performances and tours, even if on a smaller scale, to boost local streaming numbers.
- Explore partnerships with indie game developers or create custom music for games.
- Host virtual concerts or listening parties in gaming platforms or virtual spaces.
- Create music or sound effects for game streamers to use in their content.
Paid Streaming and Premium Content
The report indicates that premium streaming accounted for 57.5% of total on-demand (combined audio and video) streaming globally. This suggests that a significant portion of listeners are willing to pay for music content. For indie artists, this presents an opportunity to offer exclusive or premium content to their most dedicated fans. Strategies to capitalize on this trend could include:
- Offering early access to new releases for paying fans.
- Creating premium content such as behind-the-scenes footage, acoustic versions, or live recordings.
- Partnering with streaming platforms to feature in their "artist spotlight" or similar premium-only content.
- Developing a direct-to-fan subscription model for exclusive content and perks.
The report also notes that different features matter to music streamers considering switching or trying new services. High-quality audio, access to global artists, and exclusive artist content are among the features that "up-for-grabs paid music streamers" consider important. Independent artists can use this information to tailor their offerings and potentially partner with emerging streaming platforms that cater to these preferences.
Conclusion: A Landscape of Opportunity
The Luminate Midyear Music Report for 2024 paints a picture of a music industry that continues to evolve rapidly, with streaming at its core but diversifying into new areas like short-form video, gaming collaborations, and sustainable physical products. For independent artists and labels, this landscape is ripe with opportunities.
The success of indie artists in the streaming sphere, particularly in the growing mid-tier category, demonstrates that independence is no longer a barrier to achieving significant reach and building sustainable careers. By focusing on authentic connections with fans, leveraging social media and short-form video, and strategically approaching both digital and physical distribution, independent artists can carve out their own paths to success.
Indie artists are thriving in streaming, proving
independence can lead to massive reach and
sustainable careers. By connecting authentically
with fans, using social media and short-form video
and smart distribution, they can create their
own success!
The global nature of streaming opens up new markets and audiences, allowing indie artists to find unexpected pockets of fandom around the world. By paying attention to genre preferences in different territories and utilizing data analytics tools, artists can target their promotion efforts more effectively.
Moreover, the intersection of music with other forms of media and entertainment - from gaming to short-form video - provides innovative ways for indie artists to increase their visibility and engage with fans. These cross-media collaborations can help artists stand out in an increasingly crowded digital landscape.
The continued importance of live music and the growing interest in sustainable practices offer opportunities for indie artists to differentiate themselves and build deeper connections with their audience. By aligning their practices with fan values and creating unique, memorable experiences, independent artists can foster a loyal fan base that supports them across multiple platforms and formats.
In essence, the 2024 Luminate Midyear Music Report suggests that while the music industry continues to be dominated by streaming, success is no longer solely defined by massive hit singles or major label backing. Instead, it's increasingly about finding and nurturing a dedicated audience, leveraging technology and data effectively, and creating multi-faceted careers that span digital and physical realms. For independent artists willing to innovate, adapt, and connect authentically with their fans, the current music landscape offers more paths to success than ever before.
Read the full report on Luminate website here.
