Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

User-centric settlement for music streaming


Published on

The Norwegian streaming market is currently (2013) the world’s most developed with a 78% digital market share of recorded music, and a 65% share from streaming alone.
Lately, several voices within the music industry have asked if a user-centric settlement of revenue might meet some of the challenges and criticism facing the current music streaming model. For the first time, the Clouds & Concerts research project addresses the difference between two settlement models, based on real listening patterns of all users of WiMP Music in Norway in August 2013 and August 2012.

The results of the comparison between the two models shows that they do not differ much viewed from a bird’s eye perspective. Both models give the same share of revenue to the same top 5000 artists collectively, and the top four labels would receive almost the same revenue with a user-centric model, as in the current pro rata model (75% compared to 76%).

From a more refined and detailed perspective, however, the comparison shows an overall increase of 13% in revenue for local artists when we apply a user-centric model.
The report asks if a user-centric model might motivate labels to find and develop local talent, inspire artists to connect with local fans by touring and concentrate on building a fan-base, and may consequently make it less likely that small labels and local artists to withdraw their music from the streaming catalogue. Finally, a new user-centric model is likely to be perceived as a more fair model by fans, as they are treated equally according to what they pay for music, and the money they contribute is distributed directly to the labels and rights-holders behind the music, thus connecting it to each listener’s streams.

To see the full report these slides are based on, please visit: (redirects to the webpage at the University of Oslo) or download directly from this link:

Some twenty researchers and students from the University of Oslo are involved in the research project Clouds & Concerts studying audiences experience of live music and the use of new digital music services. The growth in the festival market and streaming services like Spotify and WiMP are two notable trends in Norwegian music culture. The project is funded by the Research council of Norway, and cooperates with WiMP Music and Telenor.

The report was written by Arnt Maasø based on data analysis performed by research assistants Ola Løvholm and Xin Jian in cooperation with the author. Results was first presented at the panel 'Distribution of Income in a Streaming Economy' at SXSW 14 March 2014 (

For further questions and comments, please contact:
@arnte on Twitter.

Arnt Maasø
Oslo, March 2014

Published in: Business
  • Be the first to comment

User-centric settlement for music streaming

  1. 1. User-centric settlement for streaming? Arnt Maasø, Associate professor, University of Oslo, Norway
  2. 2. Outline Physical era vs. streaming era Challenges for artists and music business Results from research on user- centric settlement
  3. 3. The era of physical units
  4. 4. Artist received a ! direct share of ! a fan’s purchase
  5. 5. My streams Your streams
  6. 6. Example
  7. 7. 100 streams1000 streams SUM: 1100 streams ‘Pro rata share’ = personal streams ! divided by total sum of streams =1000/1100 =100/1100 Pro rata model
  8. 8. 100 streams1000 streams Pro rata model =1000/1100 =100/1100
  9. 9. 90,9% =1000/1100 =100/1100 100 streams1000 streams 9,1% Pro rata model
  10. 10. User-Centric model
  11. 11. 50% 50% Shared between the artists Miriam listens to Shared between the artists Arnt listens to User-Centric model
  12. 12. Challenges with existing model? Economic disconnect between fans and artists Favors ‘quantitative’ usage Niche artists with niche audience may struggle May inhibit innovation
  13. 13. Results from one sample month (August 2013 + 2012)
 All streams by all anonymized users of WiMP Music in Norway
  14. 14. Share labels Universal Sony Music WMG & EMI Phonofile Other Share of revenue August 2013 Pro rata model User-centric model Market share inferred from the model, and not based on actual information about price tiers or price-per-stream.
  15. 15. Artists: cumulative share Cumulativeshare 20 % 40 % 60 % 80 % Top 5000 streamed artists August 2013 10 100 500 1000 5000 8,5 % 34,1 % 60,1 % 70,8 % 89,7 % 7,6 % 31,8 % 58,3 % 69,4 % 89,2 % Pro rata model User-centric model
  16. 16. Cumulativeshare 0 % 20 % 40 % 60 % 80 % Top 5000 streamed artists August 2012 and August 2013 10 100 500 1000 5000 89,1 % 69,2 % 58 % 31,6 % 7,9 % 88,2 % 70,4 % 59,7 % 34,5 % 9,4 % User-Centric 2012 User-Centric 2013 Comparison 2012-2013 Note: The data in the 2012-2013 comparison here are filtered for users with more than 100 streams. Data for all other figures are with all users with more than one stream.
  17. 17. Share of revenue local artists Cumulativeshare 10 % 20 % 30 % Local artists among top 5000 artists 10 100 500 1000 5000 2,7 % 11,1 % 19,0 % 21,5 % 25,4 % 1,6 % 9,3 % 16,4 % 18,6 % 22,5 % Pro rata model User-centric model
  18. 18. International! 70,9 % 29,1 % User-centered model favors local artists 13% ! increase * Percentages here are of the top 5000 artists (accounting for near 90% of all streams), tagged with nationality International! 74,2 % 25,8 % Pro rata model User-centric model
  19. 19. User-centered model favors local artists
  20. 20. WiMP Passion index Streaminginhours Number of users * LOW passion * HIGH passion
  21. 21. Passion index and user-centered model 31 of 100 top artists on the passion index are local 8 of these have significantly more (5-800%) streaming by fans in a 30 km radius from where they are from Almost all artists with high passion index benefit from a user-centric model Highlights the importance of developing close fan-artist relations
  22. 22. Fair for artists - fair for fans? May this be an incentive for labels to develop local talent? Added incentive for artists to connect with local fans? Increase legitimacy for streaming services?
  23. 23. Thank you! Arnt Maasø, University of Oslo <> Arnt MaasøXin Jian Ola Løvholm The Clouds & Concerts research project involves: Anne Danielsen (project leader, U of Oslo), Arnt Maasø (project leader, U of Oslo), Yngvar Kjus (post doctor), Anja Nylund Hagen (PhD), Marika Lüders, (researcher, SINTEF), Beathe Due, Johannes Bjelland, Kenth Engø-Monsen, Pål Roe Sundsøy Wenche Nag (Researchers, Telenor Group), Research assistants: Ola Løvholm, Xin Jian, Marc Casanovas, Linn Jakhelln, Gro Kirkeby, Erik N. Strutz, Hanne Tråsdahl, Ragnhild Toldnes, Inger Helseth, Helena Zarifa Pedersen. #sxstreaming
  24. 24. Panel discussion Kjartan Slette! Head of strategy! WiMP Music Arnt Maasø! Assoc. professor! Univ. of Oslo Hedvig Mollestad! Thomassen! Artist Moderator: 
 Inger Elise Mey! Director TONO Trond Tornes! Marketing Dir.! Phonofile #sxstreaming