Songs at your fingertips
> The CD way we enjoy music is fast disappearing as more people are turning to fast, cheap and easy music streaming services
How have music streaming services such as Spotify affected the local music business? “It has affected the music industry very positively, and it has paved the way for a new way of music consumption. “As we move rapidly into the digital world, the decline of music consumption [through] physical format is rapidly at its tail end – compounded by the closure of many music retailers, plus the ease of accessing music on [consumers’] phones [or] any digital device. “The streaming service is relatively new to us here locally – around three years – and it’s still in its infancy stage.
“Much has to be done to also encourage such a method of music enjoyment. Consumers are even given the option of getting ‘freemium’ services versus a ‘premium’ subscription.
“As smartphone and broadband penetration increase, it will also catapult the habit of music streaming consumption.
“Additionally, the affordability of phone data will also help increase the consumption/ streaming.
“A streaming service subscription is only [around] RM14.90 per month – even cheaper than one’s lunch. Hopefully, consumers and fans alike will find Husaini, and Datuk Siti Nurhaliza, just to name a few.”
In the recent movie Baby Driver, the main character has a soundtrack for every occasion. Do Malaysians have similar patterns when it comes to the music they like to download? “Yes, we believe that users today are soundtracking their lives with playlists. There RM14.90 affordable.”
What are album (CD) sales like now? We see fewer and fewer stores selling them. “CD sales [only make up] about 10% to 15% of total sales.
“The closure of retail shops due to high operational costs, changes in music consumption habits, ease of access to music [online] and its affordability, and the current trend of music releases being singles, have all compounded this issue of declining CD sales. are over two billion playlists on Spotify, providing users the chance to stream music based on their favourite moment.
“Having said that, users are also very keen on curating their own playlists, selecting songs that work best for them.”
Are they looking for new stuff or gravitating towards older tracks? “The love Malaysians have for music is
“Soon, cars will not even have CD players built-in, and when that happens with most car manufacturers, the demise of CDs will be inevitable.”
How will the move to streaming services affect the local music industry as a whole? “As I mentioned earlier – positively. Consumers are given many choices of streaming services, it’s cheap, and consumers have access to millions of songs.
“It’s now up to the consumers to embrace this new format of ‘music rental’ model.
“A great example on how well streaming services have been accepted is in Sweden, where 60% of its population are paid subscribers of Spotify.
“In Malaysia, we are only at around 300,000 [of paid subscribers] compared to close to 850,000 of streaming users.”
People talk about the return of vinyl, but is that just a passing trend? “It is a niche and ‘hipster’ format – it will never be a significant format that will turn around the music business.
“Look at the penetration of record players: it is not mass marketed, and many LP purchasers don’t even own a vinyl player.”
What are the sales figures like for local artistes now? “It depends … it’s very subjective. Nowadays, artistes make their money from streaming, downloads, ringback tones, social media exploitation, and artiste management (shows, concerts, endorsements, brand partnerships).
“Some sell a lot and some very little, some have massive hits, while others don’t sell at all.” remarkable. Users look for music that will resonate with their music preference and style; regardless of it being old or new, and we help connect creators with their fans.
“Spotify offers them the best features and content – both international and local – that makes us so popular with music fans here.
“Over the past year, Malaysian users have spent at least eight billion minutes streaming on Spotify.”