You Wanted a Hit?

In an adapted excerpt from his new book, The Song Machine, John Seabrook explains why streaming services will never kill Top 40

Illustration: Jiro Bevis for Bloomberg Businessweek

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By John Seabrook

October 14, 2015 at 8:46 PM UTC

This article is for subscribers only.

This article is part of the October 19, 2015 issue of businessweek.

Ever since Napster and the dawn of the age of file sharing, the record business has been the canary in the coal mine for the culture industry. First the product went digital, with the MP3, then it became free, then the record stores closed and distribution went online with iTunes. Now, as music consumption shifts rapidly to streaming, the record companies are embracing a business model that doesn’t include record sales at all.

Despite these enormous disruptions, one thing hasn’t changed: the importance hits play in the business. Ten percent of all songs still supply more than 90 percent of the revenue, according to hit man and Lava Records Chief Executive Officer Jason Flom, just as it was before the Troubles. Hits not only move records and earn royalties, they also sell tickets to shows and generate fees from commercials, TV shows, and movies. What is the most popular playlist on Spotify? Top 40 pop. What are SiriusXM’s most listened to channels? Venus and Hits 1, the two hits stations.