Record labels welcome UK competition authority report on streaming, as Merck Mercuriadis slams CMA for not using ‘powers they have to fix the problems they identify’

On Tuesday, the UK’s top regulatory competition watchdog – the Competition and Markets Authority (CMA) – conclusion its independent study of the domestic music streaming market.

Among the CMA’s findings are that large-scale record labels are “[not] maybe is do meaningful excess profit can be shared with creators”.

It also concluded that streaming remuneration is a pursuit for the elite, with more than 60% of UK streaming being music recorded by only 0.4% of the top artists. .

The announcement follows an investigation into the music business that came after an inter-parliamentary committee comprised of UK politicians called for a “complete reset” of music streaming. in July of last year after an inquiry into the economics of streaming.

A related report has recommended that the dominance of professionals in the UK recorded music industry be transferred to the UK competition watchdog – the Competition and Markets Authority. school (CMA).

The CMA then conducted a ‘market study’ on the dynamics of the record business. CMA . Finals 165 pages long report on the matter was published in the UK on Tuesday (November 29).

Publishing the final report on Tuesday (November 29), Sarah Carddell, Interim CEO of CMA, said: “Although this report marks the end of CMA’s market research, the aim is to Addressing previous concerns about competition, we also hope the detailed report and evidence-based picture we can build on this relatively new field will provide the basis on which policymakers policy makers can use to see if further action is needed to help creators.”

The results of the study have received mixed responses from various figures and organizations in the music industry.

Merck MercuriadisCEO and Founder of misdiagnosis Manage songs, perform disappointed in the results of the CMA’s report.

In a statement released on Tuesday, Mercuriadis said: “Today’s CMA Report agreed with the DCMS Selection Committee on industry issues resulting in Musicians not being properly compensated for their work”.

He added: “The CMA has pointed out that most Musicians and Artists don’t have access to clear payouts. claims, damages caused by the NDA and acknowledges a conflict of interest between the label and publishers resulting in reduced publisher and Musician revenue – even although without Musicians there would be no music industry.

“However, instead of using the powers they have to fix the problems they identify, they simply look at to overcome difficulties – a brace for Musicians and Artists who are losing significant gains online income and now realize the CMA does not want to act.

“Rather than using their powers to fix the problems they identified, they were simply looking to get through it – a double blow for Musicians and Artists who are losing streaming income. significant and now finds the CMA unwilling to act.”

Merck Mercuriadis, Hipgnosis

Mercuriadis continued: “The initial work and recommendations of the DCMS Selection Committee were excellent, now we must look at them, the IPO and the Government, who now have to pick up the baton dropped by the CMA.

“The Digital Markets Bill provides the perfect vehicle to solve these problems once and for all, ensuring everyone gets paid their fair share and ensures that the UK is a great hub for music creation long into the future.”

“The report reinforces our view that the most effective way to help more artists achieve sustainable music careers is for record labels to continue to invest in talent and grow the market.”

Spokesperson for BPI

A spokesperson for BPI, which represents major and independent record labels across the UK, welcomed what it called “the CMA’s objective, evidence-based report confirming that the streaming market is competitive”.

BPI . index added that the organization believes the industry is “giving fans of affordable and accessible music and artists more choice in an environment where many others are succeeding and royalty rates for artists and musicians have increased.”

A BPI spokesperson added: “As the most accurate analysis of these issues to date, this report will help inform the work we and the industry are working with Government to strengthen. further strengthen the British music scene and ensure the UK remains globally competitive.

“The report reinforces our view that the most effective way to help more artists achieve sustainable music careers is for labels to continue to invest in talent and grow the market.”

“While consumers have clearly benefited greatly from greater access to music at a reduced cost, we have to be careful to make sure music is not undervalued and we balance that out.” with the opportunity for more creators to benefit from a sustainable digital ecosystem.”

Paul Pacifico, PURPOSE

UK Independent Music Association chief executive Paul Pacifico said: “While consumers have clearly benefited greatly from greater access to music at a reduced cost, we Care has to be taken to make sure the music isn’t undervalued, and we balance that with the opportunity for more creators. benefit from a sustainable digital ecosystem.

“The independent sector has led the way in developing innovative deal structures and business models that CMA highlights as key in evolving music’s response to digital disruption, and they I need to make sure every measure the government can consider doesn’t harm those essential businesses and creative cause investors.

“Going forward, we must continue to work together as an industry on transparency and data to maximize the opportunities for our industry that the streaming investigation represents.”Global Music Business