From Vans to OnlyFans: The Spotify Effect

Streaming platforms like Spotify and Apple Music have revolutionised the way we access music, giving us a world of sounds at our fingertips and breaking down barriers for international listening. There’s no denying that streaming has made listening simpler, faster and more accessible for this generation of music fans. But is it all for the better? In this edition of 52INSIGHTS, we take a closer look at how streaming has transformed the music industry – and the impact it’s had on music, creativity and youth culture.

The Music Experience

Algorithms vs Albums

The way in which we consume music has been radically transformed in the past 20 years. Spotify claims to be working to “create a better listening experience for users by creating algorithmically personalised playlists powered by the expertise of our curators”. Although the algorithm serves as a very useful tool for listeners, allowing us to discover new music based on our listening history, it also raises questions about the role of technology in shaping our cultural habits and the ways we engage with art. One could argue that we’ve lost appreciation for the album – a body of work that is carefully curated and crafted, a story that is intended to have a start, middle and an end.

Effect on the Type of Music We Consume

Streaming platforms have also had a huge influence on the type of music we listen to. In the past, we bought our favourite artists’ albums and listened with intent in the home, perhaps sharing the experience with friends and family. Now, ambient sounds make up a huge proportion of streams as a soundtrack for working or relaxing.

“I work in a busy office, so while I’m in there I use music as a way to shut out the noise and focus on my work." Ciaran, 33

We’re seeing an increase in functional music, to accompany us as we carry out our everyday activities; upbeat music during exercise, nature sounds to relax, etc. A recent Spotify survey found that 75% of listeners say ambient or chill music is better for studying, while 67% indicate that ‘slower’ beats are key for their study sessions. More and more listeners are using music as a tool to help them focus, rather than a piece of art to be appreciated.

We see this playing out in the incredible success of Johan Röhr – a Swedish composer who has been described as “Spotify’s most-famous musician you’ve never heard of.” Röhr, who has over 2,700 songs on Spotify under various names, has racked up more than 15 billion streams – earning him a spot in Spotify’s top 100 most streamed artists. His music can be found within many of the platform’s ambient and relaxing playlists such as 'peaceful piano' and 'stress relief'. The success of Spotify is unaffected by the type of music we listen to, it relies only on our time and attention. As long as the demand for this more functional approach to music continues to grow, so too will its production.

AI Generated Music on the Rise

Over one-third of musicians already use AI in their creative process - ranging from initial experimentation and idea generation, to instrumentation, and even mastering. The extent to which AI is used in music generation is on a sliding scale of 0 right up to 100. In a recent podcast, Gustav Söderström (Spotify's co-president, chief technology officer, and chief product officer) stated that “if creators want to use AI to enhance their music, as long as we follow the legislation and copyright laws, we want them to be able to monetise their music and pay out”.

In the same interview, Söderström stated his belief that, much like the music’s piracy years, “technology has preceded the business model” especially when AI is involved in the creation of music. Streaming’s current model is great for consumers, but doesn’t work for artists. He believes that we need to find a way for creators to be reimbursed. With AI Generated music set to reduce music creators’ revenue streams by as much as 27% by 2028, the industry is grappling with finding a balance between innovation, accessibility and fair compensation.

In terms of legislation, it is yet to be decided to what extent AI can be used in the generation of music. Although it can be a powerful creative partner, without careful consideration AI presents a risk of turning music into an algorithmically generated product rather than a piece of art.

How Is it Affecting Artists?

Music Economy 

Artists earn as little as 0.0029 of a cent per stream. Meanwhile, the cost of presenting live music is on the rise. It’s becoming increasingly difficult for artists to make a living focusing solely on their art.

Furthermore, the emphasis on playlist placements on Spotify can make it hard for emerging artists to break through unless their music fits a specific mould. Algorithmically driven platforms favour songs with quick and easy hooks (as we’ve seen on TikTok) or those that align with trends. This has had an effect on the type of music that is considered popular, and may even be putting pressure on artists to adhere to this system, prioritising social media friendly sounds over more experimental or nuanced pieces that might not perform as well in algorithmic contexts.

The Democratisation of Music

Music production is now accessible to a wider audience than ever before. Musicians no longer need access to a professional studio or even traditional instruments. Digital audio software enables anyone to transform their ideas into sound, and the introduction of AI has made this process even easier. At the same time, streaming platforms allow artists to upload music independently, bypassing the need for label support. While this democratisation has empowered countless creators, it has also led to an oversaturation of music online. As a result, artists often struggle to stand out, and many face increasing pressure from labels and audiences to act as content creators in addition to musicians.

Financial Impact of Artists

This financial pinch has caused many artists to find other ways to make money – outside of music – in order to fund their musical endeavours and pay their staff. Kate Nash recently launched an OnlyFans under the slogan 'Butts for tour buses', stating that while music is 'the best job ever', it is no longer financially viable. "I also think it's a bit of a punk protest as a woman to take control of my body and sell it to be able to fund my passion project, which is actually my 18-year career."

Similarly, Lily Allen has started selling photos of her feet on OnlyFans, and has been criticised for doing so. Her subscribers pay $10 per month, earning her more than her Spotify streams.

Future of Streaming

In response to this, we’ve seen the introduction of new platforms through which artists might be able to earn a fairer share. One such example is Vault, which was launched last year in partnership with musician James Blake. As well as trying to tackle the streaming royalty issues, Vault (whose motto is “What if making music was enough?”) offers fans a community in which they can feel closer to their favourite artists, having direct access to music and even some unreleased material, amongst other benefits. Platforms like soundcloud and bandcamp continue to provide a platform for lesser-known artists to share their music.

“I predominantly use Soundcloud to stream music since it offers more choice in terms of underground music and artists and niche sub-genres. Soundcloud also allows artists to enable free downloads for tracks whereas Spotify doesn’t.” Ste, 25, The Love Network, Ireland

The future of music consumption will likely see further experimentation with platforms, a continued rise in AI-driven tools, and greater emphasis on creating authentic, tangible experiences. While streaming has undeniably reshaped the industry, it’s clear that both listeners and artists are seeking deeper connections and more meaningful ways to engage with music.

Brand Takeouts

Young People Crave Physical Music Experiences

The resurgence of vinyl among younger generations highlights a desire for non-digital interactions with music. Pop-up gigs (often in unusual locations), street jams and intimate performances are also on the rise, offering an alternative to algorithm-driven content. Brands can explore opportunities to sponsor or host unique, in-person music events that tap into this demand for authenticity. This desire for more physical music experiences is also translating online, with accounts like @soundwavesoffwax: “soundcloud rapper turned vinyl vixen” gaining traction.

Musicians As Influencers (and vice versa!)

The lines between artist and influencer are increasingly blurred. Many musicians are leveraging their personal brands on platforms like TikTok, Instagram, and OnlyFans. The Spotifi-cation of music has also seen social media influencers like TikTok superstar Addison Rae make moves into the music industry. Brands can partner with artists not just for music collaborations but for broader campaigns. Consider working with musicians to co-create content that supports their art.

Partnerships And Emerging Platforms

Platforms like Vault represent an opportunity for brands to align with artists in a more meaningful way. By supporting fairer distribution models and intimate fan experiences, brands can position themselves as champions of creativity and fairness in the industry.