Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

UK competition watchdog has music streaming in its sights

Stock MarketsOct 19, 2021 13:16
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A smartphone is seen in front of a screen projection of Spotify logo, in this picture illustration taken April 1, 2018. REUTERS/Dado Ruvic/Illustration 2/2

By Kate Holton

LONDON (Reuters) -Britain's competition regulator plans to launch an examination of the music streaming market to see whether a sector dominated by platforms such as Spotify and Apple (NASDAQ:AAPL) works for consumers.

The watchdog's announcement on Tuesday follows a report from a UK parliamentary committee this year, which warned that the ties between music majors and streaming platforms could stifle innovation in the sector.

"The UK has a love affair with music and is home to many of the world's most popular artists," CMA Chief Executive Andrea Coscelli said. "We want to do everything we can to ensure that this sector is competitive, thriving and works in the interests of music lovers."

A market study is used to examine a sector and decide if an intervention is needed. Outcomes can include asking the government to change regulations, encouraging businesses to self-regulate, taking action against companies and a full, in-depth investigation.

A spokesperson for Spotify declined to comment. The British music industry body, the BPI, said it welcomed the study. "We look forward to seeing the scope of the project in due course and engaging with the CMA to inform its work," it said.

Britain's Competition and Markets Authority has taken an increasingly proactive role in the regulation of digital markets, with investigations already launched into the power of Google, Facebook (NASDAQ:FB) and Apple in different parts of the ecosystem.

It said it would now turn its sights to music streaming which, in Britain, accounts for 80% of music consumption and is dominated by the likes of Spotify, Apple Music, Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL) Inc-owned YouTube.

Having been hammered by piracy in the late 1990s, the music industry moved towards a streaming model backed by either advertising or subscriptions as a way to secure more sustainable revenue for the sector.

Official figures show that the global recorded music market rose by 7.4% in 2020 to $21.6 billion, with a jump in demand for paid streaming services leading the way.

A British report on the sector showed that there were 139 billion audio streams in total last year. Despite the growth, artists have long complained that they do not receive a fair share from streaming platforms.

The UK parliamentary report also noted that the three major music companies, Universal, Sony and Warner, also covered up to 75% of the UK recording market and had close ties with streaming platforms, prompting lawmakers to question the level of competition in the sector.

UK competition watchdog has music streaming in its sights
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email