Luddites banned: The future of tech in the music business

Before mobiles phones graduated to what they are today, most listening devices were public in nature. But when the mobile phone became the primary listening device, everyone got a vote on what to listen to and when. The Internet made the world a stage where any player, big or small, could be heard. In the past, musicians made music for the masses, released albums once a year and worked around the clock to secure airplay. These days, artists make music for the individual. The main aim is to make it to your playlists.

The Global System for Mobile Communications Association (GSMA) predicts that there will be 5.9 billion mobile users in the world by 2025, which represents 71% penetration. Of these, some 5 billion will be accessing the Internet with their phones.

'Disruption' is a term that has become synonymous with mobile phones due to their capacity to change industries. Consequently, these devices are increasing in number and ability to control day-to-day life. Music fans stream their favourite artists on Spotify as they check out social media while buying a ticket for an upcoming gig. Similarly, at a concert venue a mobile phone is a camera and ticket. Many concertgoers have even stopped throwing their hands up in the air, unless it involves a phone in some way.

Unlike the film industry, which positioned itself for the oncoming revolution, the music industry has remained largely unprepared and major record labels have unsuccessfully attempted to maintain a status quo. Since the days of Napster, access to free music has taken root and resulted in the demise of labels that traditionally depended on record sales. In 2014, Taylor Swift pulled her music from Spotify due to low royalty payouts. Her protest sparked a debate that still comes up today: while some support free distribution of music, others hold on to the old model of physical sales. Unflinchingly, the wave of free access to music continues to erode record sales and shift revenue streams elsewhere.

Nonetheless, some artists are embracing mobile technology as a means of expression and revenue generation. Irish rockers U2 launched their U2 Experience app earlier this year. Using AR technology, the app is used in conjunction with U2 merchandise to give fans a thrilling experience. The app acts as a camera that shows regular images, but when pointed at U2 merchandise it brings out augmented visuals of the band. At U2 concerts, fans who have installed the app on their phones can point their devices at the stage and experience an alternative reality that is only visible to them.

Beats by Dre is another good example of how smartphones and their accessories have shifted the music business. Though headphones are not proprietary technology, Dr Dre identified their place in the smartphone revolution and used his brand to market the product. As listeners increasingly used their earbuds to listen to music, they craved better sound quality. Marching a relevant brand to a useful product is the secret to the success of Beats by Dre. Acquired by Apple for $3bn, the venture has made the American rapper a pretty penny.

Technology has propelled the music business from the days of radio, vinyl, tape, CDs and everything that came after. Naturally, innovation has changed how fans experience music, but the basics remain the same. Music is about experience. All innovations have been made with one central role in mind: to improve the listening experience. Immersive technology is the future of music and entertainment at large. People are looking for an experience that is out of this world; something that will astound them. How artists use enhanced visual technologies like VR and AR to improve audience experience will determine their place in the future.

Anticipating the needs of fans by developing technology that meets their expectations is the future of the music business, and adding value is something record labels will have to learn to do better. It will require industry players not only to embrace the mobile revolution but also to use it to deliver an awe-inspiring experience.