The new music streaming economy
Jeff Chiu / AP
Forbes' Zack O'Malley Greenburg reports how music streaming services have matured:
The new business model: "The model of making music available cheaply in order to cash in on touring and endorsements has been taken to its logical conclusion by Chance the Rapper ... The 24-year-old has never sold a physical album or signed a record deal in his life; he has only freely distributed his work via streaming services. He generates enough spins to make several million dollars that way. And he's cashing in big-time on lucrative festival gigs and arena dates, as well as deals with brands like Apple and Kit Kat."
"It's akin to the freemium model that's worked so well for apps ranging from Tinder to Candy Crush — give your stuff away to the many and then soak a smaller group of devotees."