Jimmy Iovine Sounds the Alarm for Music Streaming
“Minutes Away from Obsolete”: Jimmy Iovine Sounds the Alarm for Music Streaming
LOS ANGELES — One of the most prophetic voices in the music industry has issued a grim warning: the current era of music streaming is on life support. In a wide-ranging new interview with David Senra, legendary Interscope co-founder and former Apple Music executive Jimmy Iovine declared that streaming services are “minutes away from being obsolete.”
Iovine’s critique isn't based on a lack of listeners, but on a fundamental failure of the platforms to serve the people who create the product. In his view, the "utilitarian" nature of giants like Spotify and Apple Music has created a one-dimensional relationship that today's artists are ready to abandon.
The "ATM Machine" Problem
Iovine described the current state of streaming as an impersonal transaction that offers no true value beyond distribution. He argues that while platforms have become efficient at delivering audio, they have failed to become "cultural hangars" where artists and fans can actually interact.
“It’s one-dimensional. It’s an ATM machine. You put your money in, you get your music,” Iovine said. “They don’t do anything for the artist. The artist wants to communicate with their fans, period... and the streaming services are still saying, ‘We’ll put you on our list if you’re nice to us.’ That’s bullsh*t.”
The Rise of Social-First Distribution
According to Iovine, the "obsolescence" of traditional streaming is being accelerated by platforms that prioritize communication over mere consumption. He pointed to TikTok and Instagram as the real successors to the streaming model, noting that they allow for the self-promotion and direct fan engagement that streaming services lack.
“TikTok does this. Instagram does this,” Iovine noted. “You can somewhat promote yourself. You can’t rub against the artist like [streaming services do]. You gotta give them what they want.”
The "Family Plan" Financial Crisis
Beyond the lack of engagement, Iovine hit out at the financial structure of the industry, which he claims is "broken" for everyone except a tiny fraction of superstar artists. He highlighted a specific flaw in the "pro-rata" payment model, where a family’s subscription fee might go entirely to artists they never even listen to.
“Let’s say you and your wife play The Clash and The Police, but your kids play Drake and Kendrick Lamar all day. Most of the money from your house goes to Drake and Kendrick,” Iovine explained. “Unless you’re in that top chunk of heavy, heavy streaming, the money’s not really meaningful.”
A Utility Without a Soul
For Iovine, the core issue remains the lack of differentiation. While video platforms like Netflix and Disney+ compete with unique, original content, music services all offer the exact same 100-million-song library. This commoditization, he warns, turns music into a "utility" like water or electricity—essential, but ultimately undervalued by the consumer.
As Iovine steps into a consultancy role and focuses on his educational efforts at USC, his parting shot to the industry is clear: if streaming services don't evolve into entertainment experiences that empower the artist, they will be left behind by the very culture they helped digitize.
