Why Amazon VP Steve Boom just made the entire music catalog free with Prime

Revenue Models

The music industry has evolved significantly, with artists exploring diverse revenue streams beyond traditional music sales. Steve Boom highlights that while some artists continue to earn substantial income from streaming, many others must diversify their income sources, such as through merchandising and other ventures 1. He notes that the globalization of culture amplifies popular content, making it crucial for artists to find additional ways to monetize their work 1. Boom also mentions the potential of NFTs as a future revenue stream, although he believes they are not yet ready for mainstream adoption 2.

Would I? Yeah, we would consider it. I don't think it's ready for mainstream anywhere close to it at this point.

--- Steve Boom

The value of music subscriptions is another critical aspect, with Boom asserting that the current pricing offers incredible value for consumers, despite the industry's disruption by digital piracy 3.

   

Crisis Response

The COVID-19 pandemic posed significant challenges to the music industry, prompting a swift response to support those affected. Steve Boom describes how MusiCares, a music aid organization, quickly established a COVID-19 relief fund, raising approximately $30 million to assist industry workers 4. This effort was crucial in providing financial assistance to those who lost their livelihoods when live events were canceled 5. Boom emphasizes the importance of MusiCares in the industry, noting its role in offering various forms of support, including financial and medical assistance, as well as addiction recovery programs 4.

It's an incredibly meaningful organization. I've been chairman for about three years, I've been on the board for about five.

--- Steve Boom

As live music events resume, Boom observes a strong revival in the industry, with sold-out shows and enthusiastic audiences, indicating a promising path forward for both artists and industry workers 6.