MEIEA Summit 2025

                    Chris Reali, Moderator
1:15 - Music Streaming: Can the Spotify Model Survive?
1:45 - From Vinyl to Streaming: The Impact of Nostalgia on Music Consumption in the Digital Age

Music Streaming: Can the Spotify Model Survive?
  Yvan J. Kelly, Flagler College
Spotify was created in 2006 as a service to provide a legal method for streaming music. It quickly established itself as a market leader early in the streaming era. Despite being the industry leader, after seventeen years of operation the firm was still not profitable. Arrangements with music rights holders had forced the firm to operate on small margins and their expenses were not tightly controlled. Other firms, seeing possible profit opportunities, entered into the streaming market which added to Spotify’s profitability challenges. Spotify’s market share dropped with the increased competition, despite having an increased number of subscribers. In its efforts to become profitable, the company lowered expenses by cutting staff and also used a loophole to reduce payments to music rights holders. Further, the firm raised prices in an effort to increase revenues. A calculation of Spotify’s elasticity of demand in the U.S. reveals that their options for continuing price increases in the future are limited. Facing increased competition along with limitations on pricing, Spotify will find it increasingly difficult to be profitable as the streaming market becomes saturated. Efforts to diversify into new areas of revenue as well as new markets are being attempted by the company, however, questions remain about the prospects of the long-term profitability and viability of Spotify.

From Vinyl to Streaming: The Impact of Nostalgia on Music Consumption in the Digital Age
  Jeff Apruzzese, Drexel University
This paper presentation investigates how nostalgia influences music consumption in an era dominated by digital streaming, examining why some listeners maintain a preference for physical formats like vinyl and CDs despite the convenience of digital platforms. Using survey data from over 500 participants, the research reveals that nostalgia plays a significant role in shaping format preferences but does not solely account for the resurgence of physical media. This phenomenon is often driven by fandom and commodification strategies within the music industry, as seen in sales trends where legacy artists and current pop icons dominate vinyl sales.
The study sheds light on the complex interplay of emotional, sensory, and cultural factors in music consumption, offering insights into the lasting appeal of analog formats. Findings underscore the importance of understanding nostalgia as an influential factor in the music industry’s marketing strategies and the development of pedagogical approaches in music education. This paper will be relevant to academics, industry professionals, and educators looking to explore the role of nostalgia in contemporary music consumption.