at a zoo by
Niconico Advances in
computer networking, combined with powerful home computers and operating systems, have made streaming media affordable and easy for the public. Stand-alone
Internet radio devices emerged to offer listeners a non-technical option for listening to audio streams. These audio-streaming services became increasingly popular; music streaming reached 4 trillion streams globally in 2023—a significant increase from 2022—jumping 34% over the year. receiver playing music being streamed via Bluetooth from a smartphone In general, multimedia content is data-intensive, so media storage and transmission costs are still significant. Media is generally
compressed for transport and storage. Increasing consumer demand for streaming
high-definition (HD) content has led the industry to develop technologies such as
WirelessHD and
G.hn, which are optimized for streaming HD content. Many developers have introduced HD streaming apps that work on smaller devices, such as tablets and smartphones, for everyday purposes. A media stream can be streamed either
live or
on demand. Live streams are generally provided by a method called
true streaming. True streaming sends the information straight to the computer or device without saving it to a local file. On-demand streaming is provided by a method called
progressive download. Progressive download saves the received information to a local file and then plays it from that location. On-demand streams are often saved to files for extended period of time, while live streams are available at one time only (e.g., during a football game). Streaming media is increasingly being coupled with the use of social media. For example, sites such as YouTube encourage social interaction in webcasts through features such as
live chat,
online surveys, user posting of comments online, and more. Furthermore, streaming media is increasingly being used for
social business and
e-learning. The
Horowitz Research State of Pay TV, OTT, and SVOD 2017 report said that 70 percent of those viewing content did so through a streaming service and that 40 percent of TV viewing was done this way, twice the number from five years earlier.
Millennials, the report said, streamed 60 percent of the content.
Transition from DVD One of the movie streaming industry's largest impacts was on the DVD industry, which drastically dropped in popularity and profitability with the mass popularization of online content. The rise of media streaming caused the downfall of many DVD rental companies, such as
Blockbuster. In July 2015,
The New York Times published an article about
Netflix's DVD services. It stated that Netflix was continuing their DVD services with 5.3 million subscribers, which was a significant drop from the previous year. On the other hand, their streaming service had 65 million members. The shift to streaming platforms also led to the decline of DVD rental services. In July 2024,
NBC News reported that
RedBox, a DVD rental service that had operated for 22 years, would shut down due to the rapid incline of streaming platforms. As the rental services has been rapidly declining since 2010, the business had to file for bankruptcy, with 99% of households now subscribing to streaming services. Further reflecting the shift away from physical media,
Best Buy has ceased selling DVDs.
Napster Music streaming is one of the most popular ways in which consumers interact with streaming media. In the age of digitization, the
private consumption of music has transformed into a
public good, largely due to one player in the market: Napster.
Napster, a
peer-to-peer (P2P) file-sharing network where users could upload and download
MP3 files freely, broke all music industry conventions when it launched in early 1999 in Hull, Massachusetts. The platform was developed by Shawn and John Fanning as well as
Sean Parker. In an interview from 2009, Shawn Fanning explained that Napster "was something that came to me as a result of seeing a sort of unmet need and the passion people had for being able to find all this music, particularly a lot of the obscure stuff, which wouldn't be something you go to a record store and purchase, so it felt like a problem worth solving." Not only did this development disrupt the music industry by making songs that previously required payment to be freely accessible to any Napster user, but it also demonstrated the power of P2P networks in turning any digital file into a public, shareable good. For the brief period of time that Napster existed, mp3 files fundamentally changed as a type of good. Songs were no longer financially excludable, barring access to a computer with internet access, and they were not rivals, meaning if one person downloaded a song, it did not diminish another user from doing the same. Napster, like most other providers of public goods, faced the
free-rider problem. Every user benefits when an individual uploads an mp3 file, but there is no requirement or mechanism that forces all users to share their music. Generally, the platform encouraged sharing; users who downloaded files from others often had their own files available for upload as well. However, not everyone chose to share their files. There was no built-in incentive specifically discouraging users from sharing their own files. This structure revolutionized the consumer's perception of ownership over
digital goods; it made music freely replicable. Napster quickly garnered millions of users, growing faster than any other business in history. At the peak of its existence, Napster boasted about 80 million users globally. The site gained so much traffic that many college campuses had to block access to Napster because it created network congestion from so many students sharing music files. The advent of Napster sparked the creation of numerous other P2P sites, including
LimeWire (2000),
BitTorrent (2001), and
the Pirate Bay (2003). The reign of P2P networks was short-lived. The first to fall was Napster in 2001. Numerous lawsuits were filed against Napster by various record labels, all of which were subsidiaries of
Universal Music Group,
Sony Music Entertainment,
Warner Music Group, or
EMI. In addition to this, the
Recording Industry Association of America (RIAA) also filed a lawsuit against Napster on the grounds of unauthorized distribution of copyrighted material, which ultimately led Napster to shut down in 2001.
The fight for intellectual property rights: A&M Records, Inc. v. Napster, Inc. The lawsuit
A&M Records, Inc. v. Napster, Inc. fundamentally changed the way consumers interact with music streaming. It was argued on 2 October 2000, and was decided on 12 February 2001. The
Court of Appeals for the Ninth Circuit ruled that a P2P file-sharing service could be held liable for contributory and vicarious infringement of copyright, serving as a landmark decision for Intellectual property law. The first issue that the Court addressed was
fair use, which says that otherwise infringing activities are permissible so long as they are for purposes "such as criticism, comment, news reporting, teaching [...] scholarship, or research." Judge Beezer, the judge for this case, noted that Napster claimed that its services fit "three specific alleged fair uses:
sampling, where users make temporary copies of a work before purchasing; space-shifting, where users access a sound recording through the Napster system that they already own in audio CD format; and permissive distribution of recordings by both new and established artists." Although music streaming is no longer a freely replicable public good, streaming platforms such as
Spotify,
Deezer,
Apple Music,
SoundCloud,
YouTube Music, and
Amazon Music have shifted music streaming to a
club-type good. While some platforms, most notably Spotify, give customers access to a
freemium service that enables the use of limited features for exposure to advertisements, most companies operate under a premium subscription model. Under such circumstances, music streaming is financially excludable, requiring that customers pay a monthly fee for access to a music library, but non-rival, since one customer's use does not impair another's. An article written by the
New York Times in 2021 states that "streaming saved music." This is because it provided monthly revenue. Especially Spotify offers its free platform, but you can pay for their premium to get music ad-free. This allows access for people to stream music anywhere from their devices not having to rely on CDs anymore. There is competition between services similar but lesser to the streaming wars for video media. , Spotify has over 207 million users in 78 countries, , Apple Music has about 60 million, and SoundCloud has 175 million. All platforms provide varying degrees of accessibility. Apple Music and Prime Music only offer their services for paid subscribers, whereas Spotify and SoundCloud offer freemium and premium services. Napster, owned by Rhapsody since 2011, has resurfaced as a music streaming platform offering subscription-based services to over 4.5 million users . In the evolving music streaming landscape, competition among platforms is shaped by various factors, including royalty rates, exclusive content, and market expansion strategies. A notable development occurred in January 2025, when Universal Music Group (UMG) and Spotify announced a new multi-year agreement. This partnership aims to enhance opportunities for artists and consumers through innovative subscription tiers and an enriched audio-visual catalog. The music industry's response to music streaming was initially negative. Along with music piracy, streaming services disrupted the market and contributed to the fall in US revenue from $14.6 billion in 1999 to $6.3 billion in 2009. CDs and single-track downloads were not selling because content was freely available on the Internet. By 2018, however, music streaming revenue exceeded that of traditional revenue streams (e.g. record sales, album sales, downloads). Streaming revenue is now one of the largest driving forces behind the growth in the music industry.
COVID-19 pandemic declined with the rise of streaming services, and theaters did not fully recover from declines during the
COVID-19 pandemic when many were closed. By August 2020, the
COVID-19 pandemic had streaming services busier than ever. The pandemic contributed to a surge in subscriptions, in the UK alone, 12 million people joined a new streaming service that they had not previously had. Global subscriptions skyrocketed passing 1 billion. Within the first 3 months, back in 2020, nearly 15.7 million people signed up for Netflix. An impact analysis of 2020 data by the
International Confederation of Societies of Authors and Composers (CISAC) indicated that remuneration from digital streaming of music increased with a strong rise in digital royalty collection (up 16.6% to EUR 2.4 billion), but it would not compensate the overall loss of income of authors from concerts, public performance and broadcast. The
International Federation of the Phonographic Industry (IFPI) recompiled the music industry initiatives around the world related to the COVID-19. In its State of the Industry report, it recorded that the global recorded music market grew by 7.4% in 2022, the 6th consecutive year of growth. This growth was driven by streaming, mostly from paid subscription streaming revenues which increased by 18.5%, fueled by 443 million users of subscription accounts by the end of 2020. The COVID-19 pandemic has also driven an increase in misinformation and disinformation, particularly on streaming platforms like YouTube and
podcasts.
Local/home streaming Streaming also refers to the offline streaming of multimedia at home. This is made possible by technologies such as
DLNA, which allow devices on the same local network to connect to each other and share media. Such capabilities are heightened using
network-attached storage (NAS) devices at home, or using specialized software like
Plex Media Server,
Jellyfin or
TwonkyMedia. ==Technologies==