fbpx

Snapchat’s New Partnership with Universal Music Group Expands Music Discovery

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on whatsapp

by Dan Runcie

Every Monday, Trapital's free weekly memo will give you insights on the latest moves in the business of hip-hop. Join 10K+ readers who stay ahead of all the trends:

Last week, Snapchat and Universal Music Group signed a multi-year partnership to make the record label’s full catalog accessible to all users. Snapchat’s new partnership is a clear rival to TikTok, but it’s also a reminder of how fragmented the music landscape.

Music discovery is top of the funnel for streaming services

Social media is one of the best places to discover new music. Most digital streaming providers have a Discover Weekly or New Music Friday-style playlist, but it’s not the same.

We trust recommendations from friends over algorithms. This is where Snapchat shines in the music industry’s value chain. It’s also where TikTok, Instagram, Twitter, Peloton, Roblox, Fortnite, and many of the other platforms I mentioned in last week’s Trapital essay.

These platforms don’t compete directly with the DSPs. Music discovery is the ‘top of funnel’ for on-demand music listening on DSPs, which helps convert more paid streaming subscribers. But they do compete indirectly by helping the record labels diversify revenue streams and reduce reliance on the DSPs. I still doubt the revenue from music discovery tools can ever match the DSPs, but the labels would rather some of that revenue than none at all.

Where Snapchat can stand out

Snapchat’s popularity highlights our social media bubbles more than any other platform. Many people over 32 years old wonder whether Snapchat still exists. Meanwhile, people under 25 use the growing platform more than any other social media.

Snapchat’s user profile is different than TikTok and should therefore have different artists rising on the platform. Snapchat’s music team should study TikTok’s 2020 music report, identify the artists with potential who are not named in that report, target them to become Snapchat music superstars.

I’m not gonna act like I know who those artists are. I haven’t used Snapchat since the Obama administration. But my 17-year-old cousin, who uses Snapchat every day, believes that Polo G is a superstar. I’m not ready to agree with all that just yet, but Polo G has a growing and he’s just getting started.

The DJ Khaled Snapchat era is long gone. But there’s plenty of room for Gen Z artists to rise.

Read more about Snapchat and UMG’s partnership in The Verge.

Dan Runcie

Dan Runcie

Founder of Trapital

Want more? Trapital's free Monday memo will keep you posted on the latest trends in the business of hip-hop:

Like this memo? Share it!

Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp
Share on email
"The stuff that Trapital puts out is fantastic. Really interesting insights into the industry, artists trends, and market trends."
Mike Weissman
CEO, SoundCloud
“You tell the true stories. Not just the end product, but how you get to the end product. Your point of view on it is dope.”
Steve Stoute
CEO, UnitedMasters and Translation