A comeback for CDs, MP3 players & more?

“In our ‘Future Music’ section, we take a look at trends, developments and forecasts that could shape the music industry of tomorrow—or already are. In this article, we look at the interplay between streaming and familiar formats like CDs or cassettes: “new meets old.””

In short: Streaming remains the most important channel for reach and discovery, but the system is increasingly under pressure. Reasons include rising subscription costs, growing competition from AI-generated content, and an ever-increasing flood of releases. At the same time, physical products and direct-to-fan models are becoming more important again because they create more independence, enable more direct revenue, and strengthen the bond between artists and fans. That’s why the future of music isn’t either/or, but a hybrid model of reach, independence and direct connection.

The future of music streaming: Why streaming is coming under pressure

Streaming is now the standard when it comes to music consumption. Various platforms dominate the market and have fundamentally changed the way we listen to music. According to the IFPI Global Music Report 2026, paid streaming accounts for the majority (52.4%) of global market revenue.

Despite this successful model, the first cracks in the system are becoming increasingly visible: Streaming has been criticized for years—especially from artists’ perspective. The payout per stream is low, revenue distribution is often opaque, and many musicians are heavily dependent on algorithmic and curated placements. If you don’t land in playlists, you often barely exist—and that shifts power and visibility strongly toward platform logic.

Streaming payouts for artists: Why many musicians criticize the system

Especially in the independent space, this quickly creates the feeling that reach has less to do with quality and more to do with being visible in the right contexts. The problem isn’t just the size of the payout, but also how dependent many careers have become on whether a release “works” algorithmically—and how well it’s pushed in certain playlist or recommendation environments.

Subscription fatigue: Why rising subscription costs are changing streaming

At the same time, dissatisfaction is growing on the user side. More and more people pay monthly for various services—from music to series to gaming. There’s even a term for it now: “subscription fatigue”, meaning increasing subscription burnout. Rising prices and a multitude of platforms mean users choose more carefully or cancel subscriptions. As a result, music isn’t just competing with music, but with every other monthly subscription.

AI in music: How artificial intelligence is changing streaming platforms and visibility

Another factor: the growing role of artificial intelligence. Streaming platforms are increasingly opening up to AI-generated content, while the amount of music being released continues to rise. On Spotify alone, around 100,000 tracks are uploaded every day—most of which are not streamed. That changes the attention dynamic: When more content is available, visibility becomes even scarcer—and the importance of algorithms continues to grow.

Content overload on Spotify: Why new releases fight for attention every day

On top of that comes the sheer volume: On Spotify alone, an extremely high number of new tracks are uploaded every day. Most of them are barely streamed, if at all. That’s not a judgment of quality—it’s a structural problem. The bigger the flood, the harder organic reach becomes. For artists, that means release strategies today need to rely more than ever on timing, context, storytelling and community, instead of just “drop a song and hope.” The result: more competition, less attention per release—and an even stronger dependence on algorithms. That makes it increasingly difficult for artists to build organic reach.

The comeback of physical music formats: Why vinyl, CDs and cassettes could become relevant again

In this context, an interesting question arises: Could physical or alternative formats become more relevant again?

A look at current figures shows that vinyl, at least, has already seen a clear comeback. In some markets, vinyl, for example in the US, has surpassed the billion-dollar mark for the 19th year in a row. CDs also remain a key part of marketing in certain markets—such as K-pop.

Beyond that, new niches are emerging: cassettes, limited physical releases, or even MP3 players for intentional, offline listening.

The appeal is clear: ownership and collectibles. A physical product is independent of platforms, algorithms and monthly costs. At the same time, it enables artists to monetize more directly and build a stronger bond with their fans.

Why fans are buying vinyl again: Collectible value, independence and direct revenue

The appeal of physical releases is obvious. A product is independent of platforms, algorithms and monthly costs. At the same time, it enables artists to monetize more directly—and fans can express belonging by having something “in their hands.” The collectible value also creates a different kind of relationship: music isn’t just consumed, it’s kept, displayed, gifted.

Direct-to-fan instead of just streaming. Multi-channel strategy for musicians: How to combine streaming, social media and community

So does that mean streaming is on its way out? Very likely not.

Much more, everything points to a hybrid future. Streaming remains the most important channel for reach and discovery. At the same time, physical products and direct-to-fan models are gaining importance—especially when it comes to revenue and fan engagement.

For artists, that means: If you want long-term success, you shouldn’t rely on a single channel. Instead, the trend is clearly moving toward multi-channel strategies—with streaming as the foundation, complemented by physical releases, exclusive content and direct fan communication. Each channel has a clear role: streaming (e.g., Spotify) for discovery, social media (e.g., Instagram/TikTok/YouTube) for attention and storytelling, newsletter/community for direct connection, and a website or landing page as the central hub.

Conclusion: The future of music is hybrid—reach, independence and direct connection

Streaming has revolutionized the music industry—but the system is increasingly reaching its limits. Rising subscription costs, growing competition from AI, and an ever-increasing flood of content are changing the market.

At the same time, new opportunities are emerging: for alternative formats, for more independence, and for a stronger connection between artists and fans. That’s why the future of music isn’t either/or, but a mix of reach, independence and direct connection.