Grow the TAM!
- Dmitri Vietze
- May 26
- 4 min read
Something terrible happened to music.
We came to it because a lyric, a melody, or a rhythm made us feel something deep inside, something that no other stimulus created. Like a chemical reaction, it made us see something differently, feel something more deeply, or gave us a sense we didn’t know we had. And then we got into the music industry and eventually found out there is a mystery at the heart of it: the power to move people doesn’t match the money it makes.
Music moves people. Why doesn't it make more money?
No matter what role you have in music, you are eventually faced with the fact that there is a limit to what you can make, build, or profit.
“The gaming industry is 10 times bigger than the music industry.” You heard someone say it at a conference or in an op ed and you think: how is that right? You see people listening to music everywhere: on a run, on the way to work, in the car, while cooking, on a Peloton, while studying, during yoga, at Starbucks, in the soundtracks of film, TV, and social media. Every. Where.
The loss of music’s value is a well-beaten horse. Yes, we know Napster made music free and the industry slowly brought the value of music back up with streaming. And though music’s total value is at record highs, the cultural impact and love of music seems to be missing a zero on the market size.
When people project the potential growth of the total value of music, they focus on realistic expectations for how streaming revenue will grow. Analysts look at recent patterns moving listeners from ad-based listening to subscription; they look at expansion into global markets that are later in adoption of streaming subscriptions and predict how they will unfold. Pundits project growth in sync revenue. And sometimes they include revenue from live music, tours, tickets, and merch, which more than doubles the market size.
TAM is a powerful concept
Watch a startup pitch to investors and you’ll always see a slide that measures the Total Addressable Market. TAM, for short. And investors love to ding founders when they omit the TAM or get the TAM wrong. But it’s a little bit of smoke and mirrors. Because almost every startup is selling an unproven product or service to an unknown market. But the idea of TAM is still powerful: “The number of people who like X is 1 billion. We believe we can get 1% of them to subscribe at $10/month. So our monthly recurring revenue will be $100 million!”
We know the TAM for music listeners is huge. But where do they pay for music? How do they pay for music?
As the way we use and listen to music changes, it’s a chance to re-think who pays for music and how they pay for music. With generative AI companies wanting to train their models on music, we can move away from the all-you-can-eat models of streaming services. With people starting to watch songs - like ABBA Voyage or at The Sphere - there is a new use case for turning songs into ticketed experiences. And even with videos being uploaded at staggering rates to social media platforms, the sync fees for social video don’t need to be locked in stone.
Music Tectonics is known for gathering together the best minds in music tech and music innovation. That innovation is often seen as disruptive. But it’s time to flip the script: the best innovations grow the value of music.
For the rest of this year, Music Tectonics will be exploring how to grow the market for music. Culturally, music punches above its weight. Everyone in the industry - artists, managers, labels, publishers, music tech companies, investors - needs to start rowing in the same direction to grow the market for all. We’ll start looking at emerging new revenue streams and ways to capture financial leaks or money left on the table. We want you to be a part of that discussion.
Join me June 24 for an online summit on growing the TAM. We'll rethink monetization models for the future and get insights on catalog valuation in the here and now.
About Dmitri Vietze
Dmitri Vietze launched PR and Marketing Agency Rock Paper Scissors in 1999. His vision was to combine cutting edge technology and deep organic storytelling to help clients crystallize their missions in compelling ways and amplify their stories in innovative ways. Dmitri added music tech startup founder to his accomplishments when he founded StoryAmp, a DIY PR platform. That experience informs his work as a trusted strategist for Rock Paper Scissors’ music innovation clients. He continues to lead Rock Paper Scissors as a full-service agency as the music industry and the media landscape evolves.
About Music Tectonics
The annual Music Tectonics Conference unites music tech innovators across industry boundaries to share insights and get business done. The 2026 conference returns to Santa Monica, CA, October 27-29 for three days devoted to the future of music. Track the seismic shifts that shake up music and technology the way the earth’s tectonic plates cause quakes and make mountains. Throughout the year, Music Tectonics builds community and stays on top of the shifts through their weekly podcast and monthly online events.