Independent music association IMPALA warns that a "two-tier" music streaming market is emerging, increasingly favoring major players and scale over diversity. The organization's new report argues this trend, driven by market consolidation and opaque platform policies, requires urgent attention to prevent further harm to smaller artists and labels.
The indie squeeze: IMPALA's analysis, authored by experts Dan Fowler and Katherine Bassett, details a "widening gulf" between large rightsholders and independent actors. They pinpoint concentrated market power and monetization practices that benefit scale as key drivers. IMPALA Executive Chair Helen Smith stated, "The question of market power comes out very clearly... further concentration should be restricted and even reversed.”
Diversity at risk: The report flags five main areas for action, including tackling AI-driven content dilution and reforming royalty distribution for fairer artist access. Co-author Dan Fowler cautioned, "At a time when cultural homogenisation is on the rise... we risk a future where music diversity is also being actively commercially suppressed.” The study also presses for more transparency from digital service providers (DSPs) on play-boosting tools and de-monetization.
Consolidation's cost: This pushback aligns with IMPALA's opposition to deals like Universal Music Group's proposed $775M acquisition of Downtown Music Holdings, now under EU scrutiny. AIM CEO Gee Davy noted streaming sometimes delivers "the opposite" of its democratic promise, "taking income from those who need it most." According to Musically.com, the IMPALA report gives the current market a grim score of just 21 out of 50 against its 2021 reform goals.
The fight for fair play: The report underscores a growing determination within the independent sector to challenge a system perceived as increasingly tilted against diversity and smaller creators. The call for change targets not just individual practices but the fundamental structure of the streaming economy.
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