“It’s going to be the most lucrative thing ever because you get paid forever,” he said.
Artists’ criticism of streaming services like Spotify was beginning to subside as they were “starting to understand the math,” he said.
The rise of streaming music is already affecting how record labels operate.
With more people discovering new artists through shared playlists and “tailored” radio stations like Pandora that predict what kind of music the listener wants to hear, there is less need for costly advertising campaigns to promote the performer.
“Previously, most of our marketing activities were tied to paying for exposure,” said Robert Litsen, an executive at Swedish-based Cosmos Music Group.
Promotional campaigns for a singer or a band were now more focused on “what you communicate” rather than “how much you are willing to pay,” he added.
Others believe it could shift the industry’s economic cycle away from the traditional spike in CD sales before Christmas.
“With less focus on the Christmas market, we can spread out the releases of albums at different times, when artists have more of a chance to stand out,” Universal Music Sweden managing director Per Sundin said in a recent report from IFPI.