Jimmy Iovine Warns Streaming Services Could Become “Obsolete” — What It Means for Music’s Future

Veteran music executive Jimmy Iovine has ignited fresh debate over the future of streaming platforms, suggesting in a recent conversation that today’s streaming model is perilously close to losing relevance. According to industry reports, Iovine said major streaming services are “minutes away from being obsolete” unless the business evolves rapidly.

What Iovine Actually Said

While an original video clip shared on social media doesn’t seem to load fully, multiple credible outlets and reactions confirm the core message: Iovine criticized the economics and structure of streaming platforms, arguing they are increasingly unsustainable for most artists and creators.

Specifically, he pointed out how current payout systems disproportionately benefit only top-tier artists — while the vast majority of creators earn very little from streaming revenue.

He repeatedly emphasizes that the business model behind streaming — originally based on the old 70/30 split used for digital downloads — doesn’t generate enough meaningful revenue for most musicians, and that this model must change.

Why Iovine Sees Streaming as “Broken”

Iovine’s critique isn’t new; he’s been vocal about flaws in the streaming paradigm for years. In past interviews, he argued that streaming platforms:

• function more like utilities than creative ecosystems

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  lack unique content that differentiates services

• operate under razor-thin or nonexistent profit margins

• often reward quantity of streams over artistic quality

All of these issues, he’s said before, undermine long-term viability unless the model evolves.

Reaction from Industry Insiders

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Responses from music execs and social media users indicate a mixed reception:

• Some agree with Iovine’s assessment, arguing streaming margins are unfair and artist payouts need reform.

• Others say the idea that streaming will become “obsolete” so soon is hyperbolic, pointing out that platforms like Spotify and Apple Music still dominate consumption worldwide.

• Critics also argue streaming has become too deeply ingrained in fan behavior — including playlist culture and algorithmic discovery — to disappear quickly.

There’s also chatter in music circles about the necessity for new revenue streams beyond traditional streaming, such as:

• fan subscriptions and direct support tools

• NFTs and blockchain-based ownership models

• higher-tier paid experiences

• live and hybrid content monetization

Historical Context: Iovine’s Relationship with Streaming

Iovine isn’t an outsider to the streaming world — he was deeply involved in building Apple Music following Apple’s acquisition of Beats Music in 2014, and helped shepherd Apple’s transition into subscription streaming.

In previous interviews addressing streaming viability, he stressed that the industry’s revenue structure hasn’t kept pace with shifts in consumption: platforms can grow audience figures but still struggle to generate healthy profit margins for themselves or for most artists.

What “Obsolete” Could Even Mean

When Iovine uses the word obsolete, he’s likely referring to structural obsolescence — not that streaming will vanish tomorrow, but that the current way streaming works may no longer be fit for purpose if it doesn’t adapt.

Possible structural weaknesses include:

• Payout inequality: Only superstar artists generate significant earnings from streams.

• Market saturation: Users subscribe to multiple services without a clear differentiator between them.

• Discovery vs. monetization disconnect: Algorithms push consumption but don’t equate to significant creator income.

Analysts suggest that streaming as a distribution method isn’t going anywhere — but the pure subscription + ad model might indeed be reshaped or augmented by other tech and revenue layers.

Industry Moves That Could Address Iovine’s Concerns

Looking ahead, the conversation around streaming’s evolution involves several emerging trends:

• Direct fan monetization (exclusive content, paywall/live events)

• Higher-payout niche platforms tailored to underserved genres

• AI-powered personalized experiences offering new revenue tiers

• Hybrid content models (audio + video + interactive media)

Some companies are experimenting with alternative splits or better compensation structures, but a widespread shift hasn’t yet become mainstream.

Bottom Line

Jimmy Iovine’s blunt assertion that streaming services are “minutes away from being obsolete” is a wake-up call about the music industry’s evolving economics. Whether streaming in its current form actually goes obsolete — or simply transforms into something different — is still up for debate. What’s clear is that without structural change in revenue models and platform economics, ongoing discontent among creators is likely to continue.