Impact of Globalization and Streaming Services on Music Industry

This essay examines the multifaceted impact of globalization on the music industry, focusing on both its positive and negative effects. It details how globalization facilitates cultural exchange and technological advancements, leading to the creation of a global music village and increased revenue. However, it also addresses the challenges such as the loss of local culture, the dominance of major corporations, and music piracy. The essay further explores the role of streaming services in transforming music consumption, highlighting their growth in various regions and their impact on the revenue and accessibility of music. The rise of streaming services has provided more alternatives for music consumers, and they are able to explore music from all over the world. Desklib offers a platform to access this essay and many other resources.

Media and
Globalization

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Globalisation concept..................................................................................................................3
Positive effect of globalisation in music industry........................................................................3
Negative effect of globalisation on music industry.....................................................................4
Streaming services and its impact upon music industry..............................................................5
Streaming services around the world...........................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Globalization process has helped the world not just politically but also on the economic
and sociocultural level as it has effects on the people of different regions or communities. It is
characterized by connectivity on the global level (Hendrickson and Stanley Niaah, 2018). Media
globally generates programs which cater to the needs of the people living worldwide. News
channels, movies, television, serials, ads all represent the multiple cultures which are present in
the everyday lives of the people. The growth of media and its vital role in persuasion helps the
nations on the regional and global level to receive content and information created globally that
eases the process of globalisation. This essay will cover in detail the the meaning of
globalisation, its effect on the music industry. It shall also cover the manner in which the rise of
streaming services has impacted the nature and way how music is consumed.
TASK
Globalisation concept
The term Globalisation came into the limelight in the 1980s when its prominence was felt
by the experts on the global level. Globalization is basically a situation where there is global
aspect of the entire social, cultural and economic phenomenon. Media has played an essential
central role in the process of globalization by initiating expansion and reach of global
connections. Globalization has increased the interdependence of the nations and changed the
nature of interaction among the countries worldwide. Rapid advancement in the Communication
and Information Technology has accelerated the process of globalization (Giordani and Strologo,
2018). The interconnection among the nations has been strengthened due to the emergence of
internet, media, social media, etc. These thus play the role of disseminating information in
different parts of the world. Likewise the movies, songs, newspapers have thus changed the
nature how people consume content.
Positive effect of globalisation in music industry
Globalization with respect to music acts as a tool for the people to share their culture,
thoughts and stories on global level. The music industry has a major role to play in the
globalisation and it has also been affected both positively and negatively due to globalization
process. The positive effects are that the development of new techniques due to technological

advancement has helped in the production and manufacture of musical products like digital
audiotapes, MP3 players. With globalisation people now can make the use of technology created
in other countries by importing their products or through learning the new technological process
(Nkosi, 2020). Creation of a global village has changed the nature of music consumption from
traditional music to pop music industry. The choices and preferences of the people are changing
due to the different influences of the music industry globally. Globalisation has helped in the sale
of the music products and has also made it easier to organize music concerts anywhere around
the world. The advancement of internet has changed the scenario of communication and
transportation where now the digital media has a vital role to play in fascinating people's
interests into different kinds of popular music that are trending around the world or are preferred
by the famous pop stars globally. Globalization has also eased in the development of a new
music culture which is born as a result of the mixture of the world music (Saragih, Simatupang
and Sunitiyoso, 2018). Different genres have been created of the popular music due to the global
communication. Globalization has also has an positive impact on the revenue of the music
industry which has increased since the world has become a global village. It has also helped in
the learning of different styles of music by the people who are now keen to make their career and
mark in the music industry around the world. Thus, people today consume diverse nature of
music that is put forward in the global market by the different multinational media and the
entertaining industry that enjoy the cultural mix of music.
Negative effect of globalisation on music industry
The negative effects of Globalisation on the music industry are that the growing pop star
culture has led to the loss of local culture and traditional music because of the fact that it is
now increasingly becoming a glamorous world which is far from the reality. Local art forms of
music are losing their significance due to the increasing influence of the industrialized music
which is leading to a declining in the sale of local music and the singers in it. Also globalisation
has led to the monopoly of only certain corporations in the music industry is increasing that
are enjoying their name and fame which is problematic for the local brands and companies that
deal in music and products related to music. Due to this their sale is also decreasing which can be
very negative for them in the longer run. Music channels and brands while trying to reflect the
needs and choices of the global consumers are losing out on their local consumers who are also
the part of the globalized world (Pinto, 2021). One of the major concerns of globalization for the

music industry in the digital world is the music piracy issue on the Internet. Various
downloading stations have emerged which are working illegally in the supply of music files that
is making the real profit numbers of the music company’s drop to a major extent. Due to the
availability of the computer and Internet so easily in the houses of people due to globalization it
is easier for the people to copy music files from illegal sites which damages the sale numbers of
music stores and also of the companies that sell music. Another major negative effect of
globalization on the music industry is that the local music artists are losing their identity
among the western pop stars and music influencers who are now taking place of the traditional
artists that survive on their music for their living (Chen, Leon and Nakayama, 2018). Increasing
influence of them on the music consumption pattern of the people has led to the changes in the
choices and preferences of people in the globalized world due to a majority of people now
depending on social media to decide their choice of music.
Streaming services and its impact upon music industry
Streaming services are online providers of entertainment where a customer are able to show live
concerts, films, music shows and many others through internet connections. Today most of
entertainment shows are enjoyed by customers through these services. The benefit of using these
services is that a customer is able to enjoy the services at any time 24*7 at any place. Nowadays,
people are busy with their personal and professional life. Hence, they chose their weekend days
to watch their favourite shows (Seman, 2018). In context of music industry, most of their shows
are shown on special mobile applications where a customer needs to take subscription and enjoy
the services. A rise in this service will impact positive upon music industry for creating online
customers. The organisations in this industry earn money by writing songs as well as creating
and selling recorded music, concerts to music creditors like online applications and many others.
In 2020, it is recorded that music industry had earned 23.1 US dollars in which 56% is the part of
profit earned by streaming services (Global recorded music revenue from 1999 to 2020, 2021).
Streaming industry helps the music industry to grow well by increasing their sales. It helps to
provide million of songs to their customers from thousands of artists. For example, Spotify
Premium and Apple Music which is one of the most popular music streaming services which
charge $10 for every month.
Globalisation allows the streaming services to expand and help the music industry to grow.
When there is least or no restrictions for trading activities then a customer sitting in Asian

country can subscribe the streaming service of UK or US as per their choice and enjoy their
popular songs. Globalisation helps the music companies to sell the music to more thgan one
country and many streaming services.
Streaming services around the world
In context of Asia, the music industry projected to reach at the revenue of 5.7 billion USD
dollars. It is found that total user of streaming services in Asia is stood at 327.1 million in July
2021 (Negus, 2019). It is predicted that this industry and streaming services has a high growth in
Asian countries due to the lifestyle of customers in these countries. Today most of the customers
supposed to listen songs while travelling, they also listen songs according to their mood swings
such as when they feel sad then they prefer to listen songs and whenever they are happy and
exited than also they opted to listen their favourite songs by using streaming services. Some of
the most popular streaming services in Asia are Apple Music, Deezer, Joox and many others. In
context of Europe, it was seen that the music industry earned revenue of 6.7 billion USD dollars
in the year 2021 which means the single customer of music industry in Europe spend almost
60.81 USD dollar per year (Lozic, 2020). A report estimated that in the year 2025, Europe will
earn 64.09 USD dollars per person. The highest growth of streaming services is seen in USA.
Almost one-third part of USA population is using streaming services for listening music and
relaxing themselves. In the year 2019, USA had earned 6.93 billion USD dollars from streaming
services. Most used platforms for listening music by customers in US are Spotify, YouTube,
Amazon Music, Pandora Music and many others. The main reason for expanding streaming
services within music industry is due to the development of digital technologies such as mobile
phones, laptops, computers, mobile application and many others. Globalisation helps the user to
explore them self with huge variety of songs and the features like downloading and selecting
favourite music to listed at the top of the list as well as these services also allow their customers
to set their mobile phone ringtone by selecting a music. This service not only help customers to
listen the music but it also help to watch live concerts from global broadcast. It is a good
opportunity for music artist to grow well by attending international concerts at different places
and promote their programs and concerts through various streaming services so that their
customers will get aware about the concerts (Simon, 2019). Rise of streaming services has
impacted on the way customers consume music. Rise of streaming services help the music
industry customers to have various alternatives in streaming services and compare which

application is providing them more benefits by serving best quality of sound and audio-visual
facility in lower prices. Customers prefer to use those streaming services which are having good
quality of audio and having various types of national as well as international music in every
language. There are few of the opportunities for the growth of music industry in relation to
streaming services like providing free subscription to customers in month of their birthdays.
Hence, this will help to gain high brand reputation and customer value. Secondly, focusing on
the quality of content especially audio will further help the industry to grow well. Helping
customers to find their favourite music and making sure that their music list will highlight those
songs and music concerts which can satisfy them.
CONCLUSION
From the above information it is concluded that globalisation is the process of promoting
international trade of goods and services and humans from one country to another. Due to
globalisation most of the industry grows like hospitality industry, music industry, retailing
industry and many others. Music industry gets impacted by globalisation in both aspects positive
as well as negative. The development of new technology helps to expand streaming services for
music industry. Streaming services are those services which help customers to enjoy listening
their music by subscribing their online music applications.

REFERENCES
Chen, C.C., Leon, S. and Nakayama, M., 2018. Are You Hooked on Paid Music Streaming?: An
Investigation into the Millennial Generation. International Journal of E-Business
Research (IJEBR), 14(1), pp.1-20.
Giordani, P. and Strologo, F.R.D., 2018. Shift of Value in the Music Industry: Analysis of the
Effects of Digitalization of Music and Streaming Services.
Hendrickson, M. and Stanley Niaah, S., 2018. A study on the creative industry as a pillar of
sustained growth and diversification: the film and music sectors in Jamaica: lessons
from case studies of successful firms and ventures.
Lozic, J., 2020. The revenue recovery of the music industry as a result of revenue growth from
streaming. Economic and Social Development: Book of Proceedings, pp.203-214.
Negus, K., 2019. From creator to data: the post-record music industry and the digital
conglomerates. Media, Culture & Society, 41(3), pp.367-384.
Nkosi, A.D., 2020. Improving Professional Working Relations between Musicians, Musician
Managers and Music Promoters in the Developing South African Music
Industry. SAMUS: South African Music Studies, 40(1), pp.125-155.
Pinto, M.P., 2021. Managing the impact of the pandemic in the music industry (Doctoral
dissertation).
Saragih, H.S., Simatupang, T.M. and Sunitiyoso, Y., 2018. Multi-actor innovation in the music
industry: a state of the art review. International Journal of Innovation Science.
Seman, M., 2018. Colorado’s Music Industry: A Current Analysis and Look Forward.
Simon, J.P., 2019. New players in the music industry: lifeboats or killer whales? The role of
streaming platforms. Digital Policy, Regulation and Governance.
Online –
Global recorded music revenue from 1999 to 2020, 2021. [Online] Available Through:
< https://www.statista.com/statistics/272305/global-revenue-of-the-music-industry/>