A new generation of music creators is shifting away from traditional streaming platforms, instead favoring social media sites for music distribution and fan engagement, according to a recent report by MIDiA Research.

The study draws on MIDiA’s latest global music creator survey, which revealed that a quarter of music creators now upload directly to user-generated content platforms like TikTok without using a distributor or label. This trend is particularly prominent among creators with less than five years of experience, representing nearly half of all music creators in 2023.

The report identifies a four-stage cycle in creators’ relationship with streaming platforms: distrust, enthusiasm, royalty dissatisfaction, and now, apathy. 

Many new creators are entering the industry with lower expectations for streaming revenue, leading them to prioritize platforms that offer direct fan interaction.

“Today’s creators want platforms where they can build high-value, smaller fanbases rather than low-value, large-but-anonymous audiences,” MIDiA founder Mark Mulligan wrote in a blog post.

Source: MIDiA

The Lockdown’s Impact on Music Artists

Despite the democratization driven by streaming and social media, the report finds that less than 3% of artists account for more than 90% of all streaming royalties. Moreover, the top 0.009% of artists has increased its share since 2017, contributing to a growing disillusionment among emerging artists.

This “lockdown cohort” of creators, which surged during the COVID-19 pandemic, brings different needs and expectations to the industry. They value speed in creation, quick results, and autonomy in their careers. 

As a result, platforms like SoundCloud, YouTube, and TikTok are gaining traction among this demographic. These sites offer direct fan engagement opportunities, aligning with the new creators’ desire for meaningful connections over sheer audience size.

Creator Social Media Uploads Outpace Distribution

The study also highlights a generational divide in music production tools. Younger creators gravitate towards software like FL Studio, Splice, Beatstars, and Label Radar. In contrast, more established creators prefer traditional tools such as Cubase, Pro Tools, and Native Instruments.

MIDiA’s research indicates that the visible music creator economy, consisting of approximately seven million “Artists Direct” who self-release onto streaming platforms via distributors, represents only a fraction of the total creator base. 

For several years, the growth rate of creators uploading directly to social platforms has outpaced that of traditional distributor-based releases.

The report suggests that these trends are part of a larger “bifurcation” process in the music industry, potentially leading to the emergence of two distinct sectors catering to different creator needs and audience expectations.