“Spotify’s worst nightmare” could be here soon.
The streaming giant that changed how we watch TV might soon transform how we listen to music.
According to industry experts like Bobby Owsinski, Sync Money, and Curtiss King, Netflix could be planning to launch its own music streaming platform in 2025
But it’s not just another player in the market. They predict that it can very well change the entire streaming landscape.
Why This Could Be Netflix’s Next Move
You might be wondering why a TV streaming company would jump into music. Well, it actually makes perfect sense when you look at what Netflix has already built.
Netflix already have a huge head start with over 300 million subscribers in 190 countries and a rock-solid system for delivering content worldwide. They’ve also already nailed the technical side with their mobile app.
Not to mention, they’ve figured out something that’s giving music streaming services major headaches right now, i.e. dealing with licensing costs.
Think about Netflix’s journey for a minute.
They started out paying huge fees to movie studios just to stream their shows and movies. But they didn’t stick with that money-losing model. They soon flipped the script and started making their own Netflix Originals.
Now they own their shows outright, which turned out to be way better for their bottom line.
Besides, Netflix has already dipped their toes into the music world by handling song licensing for their shows and movies.
And, with their continued subscriber year-on-year growth and their recent price hike, having the funds for music rights and acquisitions wouldn’t be surprising.
How Will This Shake Up the System?
Netflix joining the music streaming world could completely transform how the music industry works.
Let’s break down why this is such a big deal:
New bundling options
If you’re like most people, you’re probably tired of juggling a bunch of different subscriptions.
That’s why Netflix’s plan to combine video and music in one package is smart.
We’re already seeing people cut back on their subscription services, so getting your shows and music in one place sounds pretty appealing. Plus, with Netflix’s huge subscriber base, they could pull quite a few users away from services like Spotify.
New revenue models for artists
Based on the current streaming payouts, artists will need around 300,000 streams just to earn $1,000. That’s why most independent artists don’t even make enough from streaming to cover their yearly distribution costs.
Netflix’s potential acquisition model could flip this system on its head.
With this, artists could get a significant payment upfront for their music catalog rather than hoping to eventually hit those massive streaming numbers.
And, when you combine this with Netflix’s proven ability to get content in front of global audiences and their sophisticated recommendation system, it’s easy to see why industry experts are calling this a potential revolution in music streaming.
New ways to discover or promote music
Netflix could create direct paths between music and their shows and movies. So, instead of hoping to land on the right playlist or game the algorithm, artists might have their songs featured across Netflix’s massive library of content.
Since Netflix already works with tons of music for their shows and movies, they’ve got built-in connections that could help get your music in front of viewers. Artists and labels can skip the usual music marketplaces entirely and get their work straight into Netflix’s content pipeline.
For listeners, Netflix could also totally change how we find new music.
Unlike current streaming services that mostly rely on playlists and play counts, Netflix’s recommendation system is built differently. It looks at what you actually watch and how different shows connect to each other.
Imagine that same approach applied to music discovery. It could help listeners find music they actually want to hear, not just what’s trending or getting pushed by the algorithm.
I will always prefer physical CD’s. I never signed up for streaming services. I have no plans to do so.