Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

UK watchdog to study music streaming amid claims of raw deal for artists and fans

UK watchdog to study music streaming amid claims of raw deal for artists and fans

Competition regulator acts after stinging criticism by MPs of record labels and platforms such as Spotify
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) was asked to launch the study after a scathing report by a cross-party committee of MPs last year called for a “complete reset” of a streaming model 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 or not there is a need for a full competition investigation, and if the government should legislate to improve the UK music market, take enforcement action against firms, encourage industry self-regulation or allow it to continue as it does now.

“As we examine this complex market, our thinking and conclusions will be guided by the evidence we receive,” said Coscelli. “If the CMA finds problems, it will consider what action may be necessary.”

The streaming revolution has given big music labels their mojo back. Last year, Universal Music, the world’s biggest music company and home to artists from Taylor Swift to the Beatles, was floated at a €45bn (£38bn) valuation. Warner Music, bought by Sir Leonard Blavatnik for $3.3bn (£2.5bn) in 2011, is now valued at more than $22bn.

The culture select committee report in July looked at the economics of streaming and noted that the world’s three biggest music companies: Universal Music, Sony Music and Warner Music, control about three-quarters of the UK recording market, allowing them to strike increasingly advantageous deals with streaming companies such as Spotify.

In contrast, most artists say they do not get a fair share of royalties from streaming deals they have as part of their record contracts.

“Streaming has led to an explosion of choice for music fans and creators in the UK,” said a spokesperson for the BPI, the industry body representing the UK recording industry. “The BPI looks forward to engaging closely with the CMA to help it understand the changes that streaming has brought to the music market.”

The CMA has until the 26 July to issue an interim report on the provisional findings of the market study, including a decision on whether it believes there may be grounds for a full market investigation.

The regulator then has until 26 January next year to publish the full report as well as formally start an in-depth investigation, if it deems one is required.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
×