In Music’s Fragmented World, Artists Launch Path Forward

The music industry is at a turning point, according to MIDiA Research. The company recently reported that while success remains near guaranteed for top musicians, newcomers on the scene are increasingly facing a different reality.

MIDiA’s Bifurcation theory points to current industry challenges that are forming a new business defined by two parallel consumer worlds, “listen” and “play.” Concurrently, AI is evolving music technology, changing how artists and fans interact.

In today’s fragmented music space, streaming is less than profitable for most artists, and few consider it the destination for connecting with fans. More artists are also forgoing traditional record label deals that typically take the greatest cut of earnings, opting instead for social and UGC platforms where they can forge direct connections with consumers and younger fans.

According to MIDiA, traditional streaming is expected to become a passive consumption space focused on record label artists while social apps will fuel more fandom, discovery, creation and play.

Paving a new path for musicians is Nick Hexum, lead vocalist of multi-platinum rock band 311, who recently founded his own digital music platform, SKP. The new business connects artists and their managers with a vast array of key services including project management, marketing, payments and distribution.

Users of the platform can gain an integrated view of their business and leverage data insights to make more informed investment decisions. Hexum is also focused on helping artists maximize their earnings and retain ownership of all their music.

“SKP is an idea that’s overdue, I don’t think the old model will hold much longer,” Hexum says. “We want to be the ones offering disruption in favor of the artist, because music is such an essential part of our lives, and it can do so much for your mental well-being.”

SKP’s vision is to scale through network effects and word of mouth. Hexum says that he is not seeking to sell to a record label, though they are his main competition. His goal is to operate as a grassroots organization integrating new AI and technology solutions over time. Analyzing the music business, SKP identifies gaps in social and streaming spaces to give artists a boost across leading platforms.

“We realized we wanted to disrupt the label grift. Some people blame streaming as the villain, but the record industry is back at all-time highs,” Hexum explains. “There are little tweaks we can make in the (streaming) payout system, but overall it’s been a good thing for artists. It’s really been the labels that have been taking too big of a cut.”

Recalling 311’s record deal signed in 1992, Hexum says it included a provision that, regardless of expenses, any new format or technology would pay artists less. That memory inspired Hexum to design his network “for artists by artists” in which clients become business owners.

Many other artists are also championing more equitable music careers. That’s Love Records co-founders Alex Garcia and Max Shrager established their label in 2024 after years of recording music together in Los Angeles.

Garcia says, “Coming from my own experience working with an independent label with my band Thee Sacred Souls, I wanted to keep that same ethos of a family-style label and pass the torch on to others. Ultimately, the goal is to share honest music that we genuinely like with the world.”

Love Records explores an artist’s cultural heritage, artistic vision and aspects of their musicianship to present their music in the most unique, compelling fashion. The result is successful distribution, shipping 45s across the globe to every continent except Antarctica so far.

“It’s exciting to see that the appeal is global. It’s about helping each of our artists identify what makes them compelling and unique, and then creating music and visuals that showcase those qualities,” Shrager says.

Most recently, Hexum dropped a solo EP, Waxing Nostalgic. Expanding his creativity, the release blends classic sounds of the mandolin, pedal steel and fiddle.