UK watchdog to study music streaming market amid claims of raw deal for artists and fans
The UK’s competition watchdog has launched an in-depth study into the booming music streaming market, to assess whether the big record labels and services such as Spotify hold “excessive power”, and whether artists and fans are getting a fair deal.
The Competition and Markets Authority (CMA), which was called on to launch the study following a scathing report by a cross-party committee of MPs last year calling for a “complete reset” of a streaming model which it believed only benefited big labels and superstar acts.
Music streaming now dominates fans’ listening habits and accounts for 80% of the £1.7bn total UK industry income last year. Spending on subscriptions to services such as Spotify, Apple Music and Amazon Music hit £1.3bn, compared with just £135.6m on vinyl albums, and £150m on CDs.
“Whether you’re into Bowie, Beethoven or Beyoncé, most of us now choose to stream our favourite music,” said Andrea Coscelli, the CMA chief executive. “A vibrant and competitive music streaming market not only serves the interests of fans and creators but helps support a diverse and dynamic sector, which is of significant cultural and economic value to the UK.”
The CMA said the market study, which will examine the streaming industry from “creator to consumer”, will pay particular attention to the power and influence of record labels and music streaming services.
“The CMA will consider whether innovation is being stifled and if firms hold excessive power,” it said. “The CMA will also assess whether any lack of competition between music companies could affect the musicians, singers and songwriters whose interests are intertwined with those of music lovers.”
The study will assess whether there is a need for a full competition investigation,
Read more on theguardian.com
