UK's Streaming Inquiry Update: 'Complete Reset Needed' | Music News

The UK’s streaming music market could be dismantled and rebuilt from the ground up following a scathing report delivered by parliament.

Spotify, YouTube, Apple Music and the plethora of players in the streaming space aren’t the only businesses who take a beating in the Economics of music streaming, as major labels are roundly criticised for their part.

“Streaming has undoubtedly helped save the music industry following two decades of digital piracy but it is clear that what has been saved does not work for everyone,” according to the Digital, Culture, Media and Sport (DCMS) findings, which stretch across 25 pages.

The issues “ostensibly created by streaming simply reflect more fundamental, structural problems within the recorded music industry,” the report continues.

“Streaming needs a complete reset.”

Among its top five recommendations is the call for government to enact legislation so performers can enjoy “the right to equitable remuneration for streaming income.”

And in a blow to the majors, government is urged to refer a case to the Competition and Markets Authority (CMA) to launch a full market study into the economic impact of the majors’ dominance.

The independent music community welcomed the development.

The Government now has two months to respond to the report. Should it do so, the U.K., a traditional Top 5-ranked recorded music market will become the first to try fix what many have said is a “broken” streaming model, one that disadvantages artists and lines the pockets of tech companies and their content partners.

Music streaming in the U.K. brought in more than £1 billion in revenue and generated 114 billion music streams, explains a parliamentary primer, however artists can be paid as little as 13% of the income generated.

The Economics of music streaming is a wide-angle look at the industry, the market power of the three big music companies, algorithms, the “value gap” and more. What happens next in the U.K., if anything, would set the precedent for other territories to follow, including Australia.

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Homebrewed is a radio program and podcast dedicated to supporting the Australian Music Industry. Cameron Smith and Eamonn Snow have been presenting Homebrewed since November 2017 and have received excellence awards and the admiration of local bands for their presentation of Homebrewed and their continued support of the Australian music scene. This podcast is designed so you can enjoy conversations with musicians, industry representatives and music media personalities.