Government plans new probe to scrutinise music streaming industry
"We want to do everything we can to ensure that this sector is competitive, thriving and works in the interests of music lovers"
The Government has announced a new probe into the music streaming industry, in order to make sure the market is competitive.
A market study is being planned by the Competition And Markets Authority (CMA), a non-ministerial government department responsible for strengthening business competition and preventing and reducing anti-competitive activities.
Through the study the CMA will identify any competition and consumer issues in the market, and if necessary consider how best to tackle them.
Andrea Coscelli, Chief Executive of the CMA, said: “The UK has a love affair with music and is home to many of the world’s most popular artists. We want to do everything we can to ensure that this sector is competitive, thriving and works in the interests of music lovers.
“Over the past decade, the music industry has evolved almost beyond recognition, with streaming now accounting for more than 80% of all music listened to in this country. A market study will help us to understand these radical changes and build a view as to whether competition in this sector is working well or whether further action needs to be taken.”
The CMA probe was recommended after a recent government inquiry into the streaming industry by a Department for Digital, Culture, Media and Sport (DCMS) Commons Select Committee.
Their report, first published in July, also called for new legislation that “enshrines in law [artists’] rights to a fair share of the earnings” to address the inequality in payments received by artists.
The government subsequently called in a number of music industry leaders to help consider reforms in response.
Last summer, MPs also called for a “complete reset” of the music industry to address the “pitiful returns” that artists received from streaming.
In April, over 150 artists including Paul McCartney and Kate Bush also signed an open letter that called on Boris Johnson to reform the streaming economy.