Watchdog’s music industry probe finds no competition problems

The UK’s competition watchdog has said that concentrating power in the hands of a few music streaming services and record labels would not harm listeners or musicians, despite a plea number of people in the industry.

The Competition and Markets Authority says things are “going well” for music consumers and “improving in general” for musicians, although the agency acknowledges there are challenges for a amount of people.

The regulator says it does not have the authority to address concerns some musicians and other participants in the field have raised during the consultations.

“We recognize that it is unlikely that the outcomes that many stakeholders are concerned about are driven primarily by competition,” it said in its final report on the matter, released on Tuesday.

It is unlikely that competitive intervention will improve overall results and free up more money in the system to pay more creatorsCompetition and Market Authority

“Therefore, it is unlikely that a competitive intervention would improve the overall outcome and free up more money in the system to pay creators more.”

It comes despite an earlier call from the Union of Musicians which stated in a submission published this September that addressing competition issues could boost revenue or ensure that the business Earn better share with artists.

This “will also benefit consumers by improving the quality of the music they listen to,” the union said at the time.

But in their final report, officials at the CMA concluded that “artists’ outcomes were driven by factors largely unrelated to competitive issues in the marketplace.”

Instead, these results are “tied to the way music streaming works.”

The regulator said the Government had taken steps to address concerns about how much artists are paid and MPs have proposed reforms.

The Intellectual Property Office is also conducting an investigation into how it can strengthen creators’ rights.

The CMA found that the three major UK carriers hold a combined 70% of all UK individual streams.

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It also says that less than 1% of artists generate the one million streams a month needed to earn just £12,000 a year from their music.

In total, UK listeners streamed songs about 138 billion times last year, the CMA said.

However, the regulator has encouraged the companies to share more information about streaming numbers and problems with their artists.

Although only 0.4% of artists account for 60% of all streaming in the UK, the number of artists releasing music has doubled from 200,000 in 2014 to 400,000 in 2020.

The CMA also said that while the music industry’s revenue fell from a peak of £1.9 billion in 2001 to just £800 million in 2015, the figure has recovered somewhat. to £1.1 billion by 2021.

This happened even as prices for consumers fell 20% between 2009 and 2021, the report found.

CMA interim CEO Sarah Carddell said: “Streaming has changed the way music fans access huge catalogs of music, providing a valuable platform for artists to communicate with. reach new listeners quickly and at consumer prices that have de facto fallen over the years.”

“However, we have heard from many artists and musicians across the UK how they struggle to make a decent living from these services.

“These are understandable concerns, but our findings suggest that these are not the result of ineffective competition – and that CMA intervention will not release more money into the system. to help artists or musicians.”

https://www.independent.ie/entertainment/music/watchdogs-music-industry-probe-finds-no-competition-problems-42181351.html Watchdog’s music industry probe finds no competition problems

Fry Electronics Team

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