OPINION - Streaming wars: How Spotify is changing the way it delivers listeners’ music

I wrote here recently of the changes afoot in the world of music streaming. You might now have encountered one of the biggest for yourself – Spotify’s new ‘TikTok style’ feed. Only available on the mobile app, this new look is most likely a pre-emptive strike against TikTok’s own forthcoming music service. More generally though, it’s a concession to TikTok and Instagram’s impact on the way we now consume digital content: scrolling up and down on our phones.

I had feared that the new feed might lead to a shallower experience – just an endless sequence of tracks. In fact, there’s plenty of opportunity for depth. My own feed heavily reflects my general tastes and recent listening, and short video clips tempt me into albums, playlists and songs. It’s actually pretty good, and to my Gen X mindset at least, a lot less jarring than some other services.

The new feed launched fully after Spotify’s latest Stream On event in LA earlier this month. This is the streaming service’s version of Apple’s keynote speeches, where all the latest features are unveiled.

A more contentious announcement was the expansion of ‘Discovery Mode,’ which allows labels or distributors to accept a lower pay-out in exchange for more playlisting. This is loathed in many quarters of the music industry, and seen as a potential race to the bottom. My own view is more neutral for now. There’s evidence that it provides an opportunity for under-discovered music. And after all, it’s the same, time-honoured principle as prominent racking in a record shop – all of which is paid for.

Digital burnout?

But industry pundits are pointing out other negatives, too. The new feed is yet another digital space that artists and labels will have to make content for when ‘digital burnout’ is already a thing. There will also be ads in the feed, eventually – Spotify is pressed between artist pay-outs and behemoth rivals, and its investors want profitability. Music Business Worldwide pointed out that only a fifth of plays on Spotify are driven by its algorithm. To my mind, that’s a good thing, suggesting a healthy proportion are active and on demand. But the algorithm is the proprietary gold that draws investors, so Spotify presumably needs to show it can recommend content as effectively as, you guessed it, TikTok.

The Chinese social giant’s music service looms on the horizon. Already launching in a few test markets, the industry is watching keenly to see the impact it’ll have. Could it become the Facebook to Spotify’s MySpace? TikTok is a social media platform, and Spotify very much isn’t. If music consumption is to go the way it has in Asia – a combination of streaming and social – then TikTok is in a strong position.

But if Spotify isn’t a social media platform, TikTok is not a global streaming player. The short video platform faces its own challenges. Its music offering will presumably require a whole new app, for one. Signing up for a free social media account is one thing, but installing a new app and paying for a subscription is quite another. In addition, the US government is still applying regulatory pressure.

Whatever happens, it’ll be a fascinating battle to watch.