The Competition & Markets Authority (CMA) has proposed not to refer the music streaming market to full investigation after a market study found that it is working well for consumers.
The office launched its study into the streaming market and the power of labels six months ago, following a DCMS Committee report that called for fundamental reforms.
The study aimed to investigate the streaming market “from creator to consumer” and to consider whether the dominance of major labels is stifling competition or leading to instances of “excessive power”.
“Our initial analysis shows that the outcomes for artists are not driven by issues to do with competition, such as sustained excessive profits,” said Sarah Cardell, Interim Chief Executive of the CMA.
“We are now keen to hear views on our initial findings which will help guide our thinking and inform our final report.”
The Musicians' Union and The Ivors Academy have expressed disappointment at the CMA's decision. They say major labels' dominace, the supression of the value of music publishing and stagnant pricing remain issues in music streaming.
“The CMA's release highlights what it sees as positive impacts of music streaming, but we feel they have failed to recognise the very serious problems posed to creators," MU General Secretary Naomi Pohl added.
“In the long term, this could diminish the diversity of British music available to consumers as musicians are forced to seek other ways to make a living.”
“We had particularly hoped that the CMA would deliver for songwriters who are currently receiving a small share of streaming revenue.”
The CMA will share its findings with DCMS, the IPO and the Centre for Data Ethics and Innovation to help support their research into whether artists’ rights can be strengthened in the music streaming market.
A final decision is due to be taken by the CMA early next year.