Within UK Policy
Why competition law did not solve streaming pay
The CMA found streaming competition worked for listeners, pushing the fairness debate away from antitrust and toward copyright and contracts.
On this page
- What the CMA investigated
- Why consumer outcomes differed from creator fairness
- How the study redirected the reform agenda
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Introduction
The UK Competition and Markets Authority (CMA) changed the streaming debate not by finding a solution to creator pay, but by redefining the problem. After a year-long study of the music streaming market, the CMA concluded in 2022 that competition between streaming services was generally working well for consumers and that weak earnings for many artists and songwriters were not primarily caused by failures of competition law. That finding shifted the centre of gravity of the policy discussion. Instead of asking whether market dominance by labels or platforms should be addressed through antitrust intervention, policymakers increasingly focused on copyright rules, contract terms, transparency, and creator remuneration. The CMA study therefore became a turning point in how the UK framed the question of fair pay in the streaming era. [GOV.UK]GOV.UKMusic and streaming market studyThe report sets out our findings and conclusions on competition in the markets within scope, including ou… [GOV.UK]GOV.UK29 Nov 2022 — The rise of music streaming has given consumers easy access to large catalogues of music covering an array of genres and ti…
What the CMA investigated
The CMA launched its market study after parliamentary concern that streaming appeared to benefit major labels, large platforms and superstar acts more than working musicians. The investigation examined the music streaming chain from creator to consumer, including record labels, music publishers and services such as Spotify, Apple Music and Amazon Music. It asked whether excessive market power, weak competition or anti-competitive behaviour might explain concerns about artist income. [The Guardian]theguardian.comThis comes after a report by a cross-party committee of MPs called for a complete overhaul of the streaming model, which they said primar… [The Guardian]theguardian.comThis comes after a report by a cross-party committee of MPs called for a complete overhaul of the streaming model, which they said primar…
The regulator found a market that was highly concentrated in some respects, particularly in recorded music, where the major labels remained extremely influential. However, concentration alone was not enough to justify competition intervention. The CMA concluded that competition between streaming services had delivered substantial benefits for listeners, including large catalogues, widespread availability, innovation and lower real prices over time. Between 2009 and 2021, consumer prices fell by more than 20% in real terms while access to music expanded dramatically. The authority therefore decided not to open a full competition investigation. [GOV.UK]GOV.UKmusic streaming report published29 Nov 2022 — The Competition and Markets Authority (CMA) has published its final report and found that consumers have benefited from dig… [GOV.UK]GOV.UKmusic and streaming market study final reportand streaming market study: final report29 Nov 2022 — The report sets out our findings and conclusions on competition in the markets with…
This conclusion mattered because many campaigners had hoped the study would identify competition failures that could justify regulatory action against dominant firms. Instead, the CMA argued that the evidence did not support that diagnosis. [Charles River Associates]ecp.crai.comCharles River AssociatesThe CMA concludes its independent study into the music…On 29 November 2022, the UK Competition Market Authorit…
Why consumer outcomes differed from creator fairness
The most influential part of the CMA’s analysis was its distinction between consumer welfare and creator remuneration. In competition law, regulators typically assess whether markets deliver good outcomes for consumers through price, quality, innovation and choice. By those measures, streaming appeared successful. Consumers gained access to tens of millions of tracks at relatively low monthly prices, and usage expanded rapidly. [GOV.UK]GOV.UKThe government's work on music streamingFebruary 9, 2023 — Summary of the government's ongoing work addressing key issues identified by the DCMS Select Committee's Inquiry into…
Artists and songwriters, however, were raising a different question: whether the money generated by streaming was distributed fairly. The CMA concluded that these concerns were largely separate from competition issues. In its executive summary, the authority stated that artist outcomes were driven mainly by factors unrelated to competition problems. Instead, earnings reflected the economics of copyright ownership, contractual arrangements between creators and rights holders, and the extreme concentration of listening around a small number of successful recordings. [GOV.UK Assets]assets.publishing.service.gov.ukMusic and streaming final report executiveRather, we think these.Read more…
The study highlighted a structural reality of streaming economics. Most streams are concentrated among a tiny share of artists, meaning that even a growing market does not automatically translate into sustainable incomes for the majority of creators. The CMA noted that remuneration from streaming was highly uneven and that success depended heavily on scale. Evidence cited around the report showed that less than 1% of artists reached streaming volumes capable of generating substantial recording income. [Wiggin LLP]wiggin.co.ukWiggin LLPCompetition and Markets Authority publishes final report in…5 Dec 2022 — The study found that an artist could expect to earn…
This distinction reshaped the debate. The regulator was effectively saying that a market can be competitive for consumers while still producing outcomes that many creators consider unfair. Competition law was not designed to resolve every distributional question within a cultural industry. [Charles River Associates]ecp.crai.comCharles River AssociatesThe CMA concludes its independent study into the music…On 29 November 2022, the UK Competition Market Authorit…
How the study redirected the reform agenda
Once the CMA concluded that antitrust intervention was unlikely to unlock significantly more money for creators, attention moved elsewhere. The key policy question became not whether competition was failing, but how revenues were shared after entering the system. [Musicians' Union]musiciansunion.org.ukanalysis of the competition and markets authority report on music streamingMusicians' UnionAnalysis of the Competition and Markets Authority Report…16 Aug 2022 — The CMA report highlights some interesting aspe…
Several consequences followed.
The focus shifted toward copyright policy. Parliamentary discussions increasingly centred on proposals such as equitable remuneration, contract adjustment rights and rights reversion mechanisms. These tools address how income is distributed between labels, performers and songwriters rather than how firms compete in the market. [UK Parliament]publications.parliament.ukUK Parliament Economics of music streaming: follow-upIn this market study, the CMA did establish that aspects of the music market had the…Read more… [UK Parliament]publications.parliament.ukUK Parliament Economics of music streaming: follow-upIn this market study, the CMA did establish that aspects of the music market had the…Read more…
Transparency became a reform priority. If competition law was not the primary lever, policymakers looked more closely at whether creators understood how streaming revenues were calculated and paid. This helped drive later government-backed work on transparency and industry codes. [GOV.UK]GOV.UKMusic and streaming market studyThe report sets out our findings and conclusions on competition in the markets within scope, including ou…
Industry negotiations gained importance. Creator groups, collecting societies, labels and government departments increasingly engaged in discussions about remuneration practices instead of waiting for competition enforcement. Even organisations critical of the CMA’s conclusions acknowledged that the main routes to reform now lay through government action, intellectual property policy and sector negotiations. [Musicians' Union]musiciansunion.org.ukanalysis of the competition and markets authority report on music streamingMusicians' UnionAnalysis of the Competition and Markets Authority Report…16 Aug 2022 — The CMA report highlights some interesting aspe…
The shift was visible in subsequent parliamentary scrutiny. Follow-up committee reports accepted that the CMA had not found grounds for major competition intervention, while continuing to press for reforms aimed at creator income and bargaining power. The debate therefore evolved from “Is the market competitive?” to “How should the rewards from a competitive market be divided?” [UK Parliament]publications.parliament.ukUK Parliament Economics of music streaming: follow-upIn this market study, the CMA did establish that aspects of the music market had the…Read more…
The lasting significance of the CMA study
The CMA did not settle the fairness debate. Many musicians, songwriters and campaign groups disagreed with its conclusions and argued that market concentration still influenced bargaining power and remuneration. Critics also pointed out that the authority acknowledged certain structural concerns, including high concentration and potential issues affecting songwriters. [UK Parliament]publications.parliament.ukUK Parliament Economics of music streaming: follow-upIn this market study, the CMA did establish that aspects of the music market had the…Read more…
Yet the study’s lasting influence lies in how it reframed the policy conversation. Before the investigation, streaming reform was often discussed as a possible competition problem involving dominant labels and platforms. After the investigation, the central question became how copyright ownership, contractual relationships and revenue-sharing arrangements shape creator incomes. The CMA effectively narrowed the role of competition law in the streaming debate and pushed the search for fair pay toward copyright reform, creator rights and industry governance. [GOV.UK Assets]assets.publishing.service.gov.ukMusic and streaming final report executiveRather, we think these.Read more… [GOV.UK]GOV.UK29 Nov 2022 — The rise of music streaming has given consumers easy access to large catalogues of music covering an array of genres and ti…
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Endnotes
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Source: GOV.UK
Link: https://www.gov.uk/cma-cases/music-and-streaming-market-studySource snippet
Music and streaming market studyThe report sets out our findings and conclusions on competition in the markets within scope, including ou...
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Source: GOV.UK
Link: https://www.gov.uk/government/publications/music-and-streaming-market-study-final-report/executive-summarySource snippet
29 Nov 2022 — The rise of music streaming has given consumers easy access to large catalogues of music covering an array of genres and ti...
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Source: assets.[publishing]({{ ‘publishing/’ | relative_url }}). service.gov.uk
Title: Music and streaming final report executive
Link: https://assets.publishing.service.gov.uk/media/6384edb7e90e07789ae1271c/Music_and_streaming_final_report_executive_summary.pdfSource snippet
Rather, we think these.Read more...
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Source: GOV.UK
Title: music streaming report published
Link: https://www.gov.uk/government/news/music-streaming-report-publishedSource snippet
29 Nov 2022 — The Competition and Markets Authority (CMA) has published its final report and found that consumers have benefited from dig...
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Source: GOV.UK
Title: music and streaming market study final report
Link: https://www.gov.uk/government/publications/music-and-streaming-market-study-final-reportSource snippet
and streaming market study: final report29 Nov 2022 — The report sets out our findings and conclusions on competition in the markets with...
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Source: wiggin.co.uk
Link: https://www.wiggin.co.uk/insight/competition-and-markets-authority-publishes-final-report-in-its-study-on-music-streaming-market/Source snippet
Wiggin LLPCompetition and Markets Authority publishes final report in...5 Dec 2022 — The study found that an artist could expect to earn...
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Source: publications.parliament.uk
Title: UK Parliament Economics of music streaming: follow-up
Link: https://publications.parliament.uk/pa/cm5803/cmselect/cmcumeds/874/report.htmlSource snippet
In this market study, the CMA did establish that aspects of the music market had the...Read more...
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Source: publications.parliament.uk
Link: https://publications.parliament.uk/pa/cm5802/cmselect/cmcumeds/719/71902.htmSource snippet
UK ParliamentEconomics of music streaming: Government and Competition...22 Sept 2021 — As the Committee notes in its report, the UK Gove...
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Source: GOV.UK
Title: The government’s work on music streaming
Link: https://www.gov.uk/guidance/the-governments-work-on-music-streamingSource snippet
February 9, 2023 — Summary of the government's ongoing work addressing key issues identified by the DCMS Select Committee's Inquiry into...
Published: February 9, 2023
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Source: assets.publishing.service.gov.uk
Title: publishing.service.gov.uk Music and streaming
Link: https://assets.publishing.service.gov.uk/media/6384f43ee90e077898ccb48e/Music_and_streaming_final_report.pdfSource snippet
and streaming - Final report29 Nov 2022 — The Competition and Markets Authority has excluded from this published version of the market st...
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Source: committees.parliament.uk
Link: https://committees.parliament.uk/work/9496/competition-and-market-functioning-in-the-uk-live-music-industry/Source snippet
and market functioning in the UK live music...The Business and Trade Committee is exploring issues impacting competition and market func...
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Source: publications.parliament.uk
Title: uk Economics of music streaming
Link: https://publications.parliament.uk/pa/cm5802/cmselect/cmcumeds/50/5005.htmSource snippet
of music streaming - Parliament UK - UK Parliament15 Jul 2021 — Though streaming has realised price and convenience benefits for recorded...
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Source: committees.parliament.uk
Title: uk Economics of music streaming
Link: https://committees.parliament.uk/work/646/economics-of-music-streaming/publications/Source snippet
of music streaming - CommitteesMusic streaming in the UK brings in more than £1 billion in revenue with 114 billion music streams in the...
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Source: youtube.com
Title: DCMS Committee: Economics of Music Streaming
Link: https://www.youtube.com/watch?v=t89r5Gq179ESource snippet
Musicians' Union: Fixing Streaming - The Campaign Explained...
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Source: youtube.com
Title: Musicians’ Union: Fixing Streaming
Link: https://www.youtube.com/watch?v=0_o5XJ_5a9oSource snippet
Music Streaming Market Study: UK Competition and Markets Authority Overview...
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Source: theguardian.com
Link: https://www.theguardian.com/music/2022/jan/27/uk-watchdog-to-study-music-streaming-market-amid-claims-of-raw-deal-for-artists-and-fansSource snippet
This comes after a report by a cross-party committee of MPs called for a complete overhaul of the streaming model, which they said primar...
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Source: theguardian.com
Link: https://www.theguardian.com/business/2021/oct/19/uk-music-streaming-competition-investigation-cma-spotifySource snippet
The study aims to evaluate the market's competitiveness, influence of major labels such as Universal, Sony, and Warner, and the roles of...
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Source: ecp.crai.com
Link: https://ecp.crai.com/news/the-cma-concludes-its-independent-study-into-the-music-streaming-market/Source snippet
Charles River AssociatesThe CMA concludes its independent study into the music...On 29 November 2022, the UK Competition Market Authorit...
Published: November 2022
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Source: musiciansunion.org.uk
Title: analysis of the competition and markets authority report on music streaming
Link: https://musiciansunion.org.uk/news/analysis-of-the-competition-and-markets-authority-report-on-music-streamingSource snippet
Musicians' UnionAnalysis of the Competition and Markets Authority Report...16 Aug 2022 — The CMA report highlights some interesting aspe...
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Source: musiciansunion.org.uk
Link: https://musiciansunion.org.uk/news/competition-and-markets-authority-says-low-pay-from-music-streaming-not-a-competition-issueSource snippet
Competition and Markets Authority Says Low Pay From...30 Nov 2022 — The Competition and Markets Authority (CMA) has found that low pay f...
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Source: theguardian.com
Title: uk music streaming cma artists
Link: https://www.theguardian.com/business/2022/nov/29/uk-music-streaming-cma-artistsSource snippet
UK music streaming services not making excessive profits...Nov 29, 2022 — Spending on subscriptions to services such as Spotify, Apple M...
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Source: musiciansunion.org.uk
Title: music streaming [royalties]({{ ‘royalties/’ | relative_url }})
Link: https://musiciansunion.org.uk/working-performing/recording-and-broadcasting/musician-royalties/music-streaming-royaltiesSource snippet
Royalties for Streaming Music | The MU22 Apr 2026 — The MU Royalties department collects between £1.5 million to £2 million a year for mu...
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Source: musiciansunion.org.uk
Title: government gives view on measures to fix music streaming
Link: https://musiciansunion.org.uk/news/government-gives-view-on-measures-to-fix-music-streamingSource snippet
7 Nov 2024 — Government has responded to further recommendations from the Culture, Media and Sport Select Committee on music streaming an...
Additional References
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Source: cmulibrary.com
Link: https://cmulibrary.com/timeline-dcmsstreaminginquiry/Source snippet
Timeline | Economics Of Streaming Inquiry – CMU LibraryIn response to that, the UK government's Intellectual Property Office instigated t...
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Source: slaughterandmay.com
Link: https://www.slaughterandmay.com/insights/importedcontent/competition-regulatory-newsletter-cma-publishes-final-report-in-music-and-streaming-market-study/Source snippet
Competition & Regulatory Newsletter: CMA publishes final...7 Dec 2022 — On 29 November 2022, the Competition and Markets Authority publi...
Published: November 2022
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Source: musicbusinessworldwide.com
Link: https://www.musicbusinessworldwide.com/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/Source snippet
Record labels welcome UK competition authority report on...Nov 30, 2022 — It also concluded that remuneration from streaming is an elite...
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Source: pec.ac.uk
Link: https://pec.ac.uk/wp-content/uploads/2024/01/PEC_CREATe_CMA_streaming_submission.pdfSource snippet
legislative reforms and regulatory interventions”, including measures regulating copyright contracts.Read more...
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Source: hsfkramer.com
Title: cma to undertake and publish its market study into music streaming
Link: https://www.hsfkramer.com/notes/tmt/2022-07/cma-to-undertake-and-publish-its-market-study-into-music-streamingSource snippet
Deadline for CMA to publish its market study into music...15 Jul 2022 — The purpose of the study is to examine the music streaming marke...
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Source: ism.org
Title: response to competition and markets authority streaming report
Link: https://www.ism.org/news/ism-response-to-competition-and-markets-authority-streaming-report/Source snippet
ISM response to Competition and Markets Authority...29 Nov 2022 — The CMA had launched a market study of the streaming market in January...
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Source: burges-salmon.com
Title: the economics of music streaming a shift in uk copyright law
Link: https://www.burges-salmon.com/articles/102hf39/the-economics-of-music-streaming-a-shift-in-uk-copyright-law/Source snippet
The economics of Music Streaming – a shift in UK copyright...24 Dec 2021 — The Government's Response notes that the CMA is an independen...
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Source: mediawrites.twobirds.com
Title: economics of music streaming has there been a reset
Link: https://mediawrites.twobirds.com/post/102j2do/economics-of-music-streaming-has-there-been-a-resetSource snippet
of music streaming: has there been a 'reset'?13 Feb 2024 — On 12 December 2023, the UK Parliament's Culture, Media and Sport Committee he...
Published: December 2023
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Source: create.ac.uk
Title: U K Government Responds to DCMS Inquiry into
Link: https://www.create.ac.uk/blog/2021/09/24/uk-government-responds-to-dcms-inquiry-into-the-economics-of-music-streaming/Source snippet
CREATe24 Sept 2021 — The wide-ranging DCMS report made recommendations relating to a number of contested issues including: creator remune...
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Source: midiaresearch.com
Title: recorded music market 2022 reality bites
Link: https://www.midiaresearch.com/blog/recorded-music-market-2022-reality-bitesSource snippet
Recorded music market 2022 | Reality bites16 Mar 2023 — UMG added more recorded music revenue in 2022 than the other two majors, adding $...
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