Bi­fur­ca­ti­on Theory: Who is In­ves­ting in the Next Ge­nera­ti­on of Artists?

The music industry is polarising into two camps. On the one side is “listen”; passive consumption of music, monetised largely through streaming and now superpowered by AI generation. On the other is “play”, where UGC, creator tools, and superfans are king. 

While streaming dominates passive listening, social platforms are the playgrounds for creativity and engagement. Yet neither offer much remuneration opportunity for all but the biggest artists and rights holders. 

The biggest rights owners can benefit from the economics of scale. But hyper-competition and a knocking out of the lower rungs of the artist career ladder, with little opportunity for investment or development, means that the next generation of artists is left lacking resources. Even smaller distributors and independent labels are feeling the crunch.

The music industry growth story still looks good on paper. But it needs new music to stay relevant. Who is investing in tomorrow’s artists, and as the industry continues to split, what comes next for everyone involved?