4 Takeaways from Luminate’s 2024 Midyear Report

The vast amount of online content shared daily makes it challenging to stay updated on important news stories. If you're a music industry professional, you may have missed Luminate's Midyear Report last month. To help you stay informed about the latest trends in the music business, highlighted four key insights from the report. The Luminate Midyear Music Report 2024 reveals several significant developments in the industry this year, including updated statistics on independent artists' market share, Gen Z's spending habits, the influence of short-form videos on music consumption, and the enduring value of physical albums.

#1: Independent Artist Market Share Continues to Rise: The share of indie artists’ streams increased across all tiers. 

The market share of independent artists - between 1 million to 500 million streams per year - continues to grow, showing an 8.8% increase from the second half of 2023 to the first half of 2024. Independent artists dominate the 1M-10M audio streaming tier, holding a 62.1% share, while major label artists account for 37.9%. In the first half of 2024, there has been a significant increase in independent artists reaching key streaming milestones. Compared to the second half of 2023, an additional 1,414 artists reached the 1M-10M on-demand audio streams bracket, bringing the total to 29,253. In the 10M-50M streaming tier, 267 more indie artists entered this bracket, totaling 5,222. 

Alchemy Insight: Every year independent artists gain market share on signed major label artists. More indie artists in the market means greater demand for infrastructure, resources, and tools are needed to support these independent artist. Our instinct is this environment creates a need for cost-effective distribution, marketing, and touring tools and technology. We always suggest testing new apps, content creation tools, or social media platforms to create new awareness for your music. 

#2: We Learned Something New About Music Spending: Gen Z has surpassed Millennials in monthly music spending.

Q2 2024 revealed that Gen Z (ages 12 to 27) leads in total monthly spending on music, surpassing Millennials (ages 28 to 43) for the first time. While Millennials spent an average of $63 per month, Gen Z outpaced them with an average of $80 per month. 

Alchemy Insight: Take advantage of tools on platforms where we know Gen-Z is active. Sell your merch on TikTok Shop or utilize the recent EventBrite collaboration that allows you to sell tickets via TikTok posts.

Luminate also included key information about why streaming users stay on paid platforms or choose to cancel. Consumers at risk of canceling their paid subscriptions have identified three key features that could convince them to stay: live streaming of events, concerts, and performances; additional content beyond just music; and exclusive artist content. Offering fans unique, personal insights into their favorite musicians' personalities and creative processes has become more important than ever. Platforms that provide these features are more likely to retain subscribers by keeping them engaged.
Alchemy Insight: Artists should be utilizing streaming tools like Spotify Clips or Canvas to engage deeply with fans on Spotify. Consider exclusive content that fans can only find on Clips. Free tools like Pandora AMP also allow you to share personal or behind-the-scenes stories about your recent release.

#3: Short-Form Video Dominance: Short-form video (SFV) consumption is a leading leisure activity for U.S. music listeners.

From TikTok to Meta Reels, 76% of U.S. music listeners have consumed short-form video content on one or more of these platforms. Watching SFV has become a primary pastime for American music fans, surpassing other leisure activities such as sports and reading in time spent.

Alchemy Insight: While TikTok's influence is well known, don't overlook YouTube Shorts.Though TikTok's growth has stagnated, YouTube Shorts is seeing increased usage among U.S. music listeners, signaling a shift in platform preferences within the short-form video space. Although finding success with SFV content will not directly promise you streams, it is an extremely important tool in 2024 for song discovery and building an artist’s fanbase.

#4: Album Variants Are On The Rise: The trend toward physical albums continues to grow.

Since Q2 2020, the number of album variants has been steadily increasing. In 2024, the Top 10 albums on the Billboard 200 featured an average of seven vinyl variants, thirteen CDs, and two cassettes. This trend underscores a rising consumer interest in physical formats.

Alchemy Insight: Consider releasing a vinyl edition of your upcoming album that includes a bonus track, demo version, or a never-before-heard acoustic recording. This gives fans the opportunity to own an exclusive product featuring a unique version of your music.

Wondering how to navigate these industry changes and apply the trends to your music release or artist career?

For expert guidance on making the most of your 2024 music release or campaign, reach out to us today.