29 November 2022: Following the publication today of the Competition & Market Authority’s report on Music and Streaming, UK digital entertainment and retailers association ERA issued the following statement:
“In this substantial and well-researched report, the CMA confirms that the advent of music streaming services has been overwhelmingly beneficial for music fans and for the overall UK music ecosystem.
“Fans have access to a greater range of music than ever before[1] which they can access via a subscription or supported by advertising. Meanwhile, streaming is helping more artists and songwriters than ever to reach an audience[2], royalty rates are up[3], artist earnings are up[4], the number of artists earning from their recordings is up[5] and the share of music revenues taken by songwriters is up[6].
“That does not mean things could not be improved. The CMA points out that the streaming services themselves have not benefitted as much as some others[7]. Meanwhile, it also highlights ways in which the streaming market could still work better for the artists and songwriters who actually create the music. That is why ERA remains committed to the process sponsored by the Department for Digital, Culture, Media & Sport and the Intellectual Property Office to address issues such as transparency and metadata.
“We look forward to continuing to work with our partners across the music industry to resolve these matters.”
ENDS
For further information or comment, please contact Steve Redmond – steve@eraltd.org
[1] CMA Music & Streaming Final Report. Page 14. “Most major streaming services offer catalogues with more than 75 million tracks. Page 15. “…significant increases in the quantity of music being supplied – around 60,000 new tracks were added to Spotify every day in 2021.”
[2] Page 20. “…today there are more routes to market than ever before for artists, leading to a significant rise in artist numbers (with the numbers being streamed in the UK up from around 200,000 in 2014 to around 400,000 in 2020).” Page 52. “PRS data shows a great many more songwriters earning income than before, up from 36,170 in 2009 to 62,505 in 2019 (an increase of 73%).”
[3] Page 45. The average royalty rate (before recoupment)98 for all UK artists signed to majors increased slightly from 25.0% to 26.3%.
[4] Page 45. “For the majors’ largest UK artists (those who were ranked in the top 400 of the majors’ largest artists, whether UK or global, by UK streaming revenue – in total these artists numbered 415 in 2012 and 387 in 2021): royalty rates increased from 25.4% in 2012 to 27.0% in 2021; real average earnings increased from £51,178 in 2012 to £99,615 in 2021…”
[6] Page 128. “…over this period there has been an increase in the publishing share from 8% to 15%.”
[7] Page 96. “We have found no suggestion of sustained excess profits – indeed, the music streaming services whose accounts we have analysed show low or negative operating margins.”
[6] Page 128. “…over this period there has been an increase in the publishing share from 8% to 15%.”
[7] Page 96. “We have found no suggestion of sustained excess profits – indeed, the music streaming services whose accounts we have analysed show low or negative operating margins.”