Catalog Music is King?

MRC Data, a data and analytics provider that combines Nielsen Music and Billboard charts, constructed a data report around music listening in 2021. From January to June 2021, there were 555.3 Billion streams on audio and video platforms in the United States alone. That’s a lot of streaming.

But, the most interesting data to come out of this report was the rise of “catalog music consumption” from 63.9% to 66.4% from 2020 to 2021 within the first six months of the year. This number is also up from 60.8% in 2018.

Catalog music is any music released over 18 months before a listener presses play or buys a song. This means that over the past four years, the majority of music streamers are listening to music that they already know.

When you think about the hundreds of millions of people streaming music, is it surprising that most people listen to music that they are already familiar with?

Why is it that even when there are streaming service algorithms that can predict what music you may like and radio stations like Pandora and iHeartRadio that the majority of people stick with what they know?

To understand the answer to those questions, we have to look at the entire digital landscape and how that has changed the way we consume media.

On Spotify alone, there are approximately 60,000 songs uploaded every single day… 60,000! That is a staggering number and a sign of exponential growth in music creation and sharing on major streaming platforms.

But even with all of that “current music,” the majority of listeners do not keep up. Quite frankly, how could they? Sometimes, I don’t even want to keep up because there is so much out there.

Music streaming is not the only media industry that has an extensive and growing catalog. Video streaming services like Netflix and HBO Max literally try to sell consumers based on the vastness or quality of their media libraries.

With all digital media consumption, the common theme I like to draw as to why consumers gravitate to the catalog is this: I call it the “Netflix Dilemma” or it is most commonly referred to as overchoice and the paradox of choice.

When there is so much to choose from, our minds are sent into stasis. Sometimes having too much to choose from is too much for us. So, what do we usually do? We gravitate to what we know. There’s comfort in familiarity and more often than not we choose that over anything “current.”

I expect this “catalog music” trend to continue, but it begs the question: If listeners only play/buy things they know, then how do new artists break in? I believe that there are two ways: knowing your target audience and word of mouth.

Suggestions from people we trust is as close to familiarity that a new artist can get. Finding platforms that align with your sound are crucial to scaling your music business. You have to put your stuff in front of the right people, repeatedly. Only then can you become familiar to them and create fans.

Additionally, I believe that we should build platforms that support most listeners’ desire to play the music they love. This is why we will build COMP MUSIC, a gaming social platform that will revitalize how listeners can interact with their favorite music.

As of right now, catalog music is king, and it will most likely reign for the foreseeable future.