The streaming revolution

There have been two moments of discontinuity in the recent history of music, but only one has led to an important change in the recording industry: online streaming, "which represented a turning point in the consumption of music by the public and, at the same time, pushed record labels to renew their portfolio, with higher variation in the musical repertoire produced", explains Paola Cillo, Associate Professor at the Bocconi Department of Management and Technology. "Thanks to easy access to different types of songs via streaming, user choices cover a wider range of pop music niches. As a result, music producers are being urged to cover different, and in some cases new, market segments". Some labels, for example, have opened up to the rap genre, with a consequent commitment in the scouting of artists, or deciding to acquire specialized labels.

"Even the transition, in the early 2000s, from the physical support to downloading files was a moment of discontinuity in the history of the industry, but only the advent of streaming from 2006 onwards actually pushed labels, around 2012, to substantially revise their corporate strategies", remarks Cillo. "Moreover, the latest wave of innovation also influenced the very creation of songs. New songs and melodies began to be produced both in terms of musicality and duration. The result is that those who believed most in this new kind of creativity have reached higher positions in the music charts".