Streaming is by far the most popular medium for accessing music according to a UK competition watchdog.
The Competition and Markets Authority (CMA) has found that streaming made up 80% of recorded music listening, with 138 billion streams in the UK alone in 2021.
The findings come as the CMA was asked to investigate the current state of the music industry Digital, Culture, Media and Sport Committee. MPs from the group have demanded a “complete reset” of the music market, finding that it presented “pitiful returns” for artists.
However, the CMA has dismissed the concerns, saying that whilst majority of artists receive little to know financial earnings, the consumer has benefited massively, with access to virtually unlimited music for a low set subscription fee.
The CMA did acknowledge however that whilst the streaming market does make it easier for artists to record and share music, the industry is still incredibly challenging for creators, with only a small number of high-profile artists and big players seeing a financial return.
“For many artists, it is just as tough as it has always been – and many feel that they are not getting a fair deal,” said CMA interim chief executive Sarah Cardell.
The watchdog said that the current state of the industry expands the possible audience for artists, with the report finding that older songs find a second life with younger and new audiences, whilst the number of artists streaming has risen from 200,000 to 400,000 from 2014 to 2020.
However, increased access means increased competition. As the Intellectual Property Office (IPO) says, songs reaching 1 million streams per month in the UK only sits at about 1,700.
It is no secret that streaming services present little to know financial incentive for most artists, with services such as Spotify continually under fire for their unfair financial compensation for musicians.
Spotify is believed to pay roughly $0.003 to $0.005 USD per stream, taking a 30% cut of overall revenue. Apple pays a considerably higher $0.01 USD, whilst YouTube Music pays as little as $0.008 per stream.
“Some of the best songwriters we know have had to secure other sources of income and so can’t dedicate the proper time needed to their craft. The best songs are yet to be written – but if they aren’t being fairly compensated, too many very talented people will be forced to quit,” says Catherine Wilcox, one half of UK country-music duo Ward Thomas in an interview with BBC News.
The CMA has said that the market and low streaming rates are delivering good outcomes for consumers, but that it would be concerned if either innovation in the sector was decreased or if the balance of power changed and streaming services and labels started to make substantial excess profits.
In response to the report, general secretary of the Musicians Union Naomi Pohl said that it was disappointing that competition issues were not being fully explored by the CMA.
“The CMA’s release today highlights what it sees as positive impacts of music streaming – but we feel they have failed to recognize the very serious problems posed to creators.”
