Published
Wed, Sep 22, 2021, 18:42
- Universal, Sony and Warner could be investigated following the 'Economics of music streaming' report in July.
The UK government has suggested an inquiry into three major labels, in its official response to a recent report on the streaming industry.
The Economics of music streaming report by the Digital, Culture, Media and Sport Committee was published in July, with Nile Rodgers, Radiohead and prominent UK labels among the many industry figures contributing. It highlighted key issues within the music streaming ecosystem, such as market monopolization, unjust artist payouts and pay disparity between rights-holders.
In its official response on September 21st, the UK government said that it had forwarded the committee's findings to the CMA (Competition and Markets Authority) on the recommendation that a market study is made.
In the report, the 'big three' labels who dominate the streaming landscape were identified: Universal Music Group, Sony Music & Warner Music Group. The report states that these three majors have a share of the UK recording market that is equivalent to 75% and also control the lion's share of music publishing.
The head of the committee, Julian Knight said that music performers, songwriters and composers are "losing out" despite streaming bringing "significant profits to the recorded-music industry." He joined calls for the CMA to investigate the majors on the grounds that they leverage their significant power in order to secure the best playlisting opportunities, placement and visibility on streaming and digital music platforms.
The government's recommendations will place the streaming industry model under further scrutiny, following a year which has seen reports on high-streaming artists struggling to generate revenue, and a probe by US congress into Spotify's Discovery Mode.
Read a summary of the committee's findings here.