Adele’s comeback set a record with 24 million streams in 24 hours
(Picture: Adele / Instagram)The UK competition watchdog is to probe the music streaming market to ensure it continues to thrive at a time of “radical” change.
The Competition and Markets Authority said the £5 billion music industry had evolved “almost beyond recognition”, with companies like Spotify, Apple and Amazon now accounting for more than 80% of all music played.
CMA chief 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.”
MPs on the culture committee last month found “pitiful returns” to artists from the payments system are affecting the “entire creative ecosystem.”
It also raised “deep concerns” about the position of the major music companies in the market.
Coscelli said: “A market study will help us to understand these radical changes and build a view as to whether competition in this sector is working well or whether further action needs to be taken.”
DCMS Committee chairman Julian Knight said: “We welcome the decision by the CMA to urgently carry out a competition inquiry into music streaming and the dominance of the major music groups.
“That the CMA has made this a priority is a big result for the DCMS Committee, endorsing one of the key recommendations of our inquiry into music streaming.
“Our investigation exposed fundamental problems within the structure of the music industry itself. This action marks a key step forward.”
