Independent music companies continue to call on competition watchdog to address streaming platforms
Independent music companies continue to call on the UK competition watchdog to dig deeper into the music industry and factors that repress artist revenue.
The Independent Music Companies Association (IMPALA) has pushed the Competition and Markets Authority (CMA) to widen its investigation into the likes of Spotify and Apple Music, suggesting that the “real price of music” has fallen for creatives, whilst platforms continue to reap the financial benefits.
In its submission, IMPALA wrote: “Some music services like Spotify are launching initiatives to reduce royalties for plays or privileged treatment in algorithms or other features, which are similar to payola and have no legitimate place in improving viability and opportunity for creators.”
“As a consequence, the real price of music has decreased and, to date, attempts to promote real change in how services charge for music and then allocate it have not been taken on board”, it said.
A CMA spokesperson told City A.M.: “We want to help make sure that music lovers benefit from a competitive and thriving music sector. We have therefore announced that we will launch a market study into music streaming, which will help us understand whether this sector is working well or if changes need to be made. We are currently developing the final scope of this market study and will formally launch it as soon as possible.”
In October 2021, the regulator announced its intention to launch a market study into music streaming, which are aimed at identifying and, if appropriate, consider how best to tackle competition and consumer issues.
It comes in the wider context of IMPALA opposing Sony Music’s $430m (£312m) takeover of its smaller rival AWAL in a consultation submission to the CMA.
Labour MP Kevin Brennan MP failed to push through a music streaming Bill last month, which called for fairer artist remuneration.