Streaming Services in the Music Industry
Lead Research Organisation:
University of Edinburgh
Department Name: Sch of Law
Abstract
The music industry has recently reached a "historical tipping point" of revenues of £12bn and online streaming services are seen as the reason behind the industry's changing fortunes (The Guardian, The BBC, 2017). Online streaming is now the most popular method of music consumption and a firm part of the new business model in the music industry. Yet, there has been wide-spread concern that musicians (featured artists and session musicians) and music creators (composers and songwriters) are not receiving a fair share of the music streaming pie. In 2014, Taylor Swift, one of the most popular artists on Spotify, at the time, withdrew her music from the service, due to dissatisfaction with resulting revenues (Business Insider UK, 2014).
Streaming services have demonstrated rapid innovation and changed considerably in terms of what is on offer for their users. Initially, users could search and access specific content on demand, but now they can, in addition, create and share playlists, listen to curated playlists, and create their own virtual personalised radio stations. In parallel to the demand and uptake of streaming services, traditional radio has seen a decline; and streaming services have surpassed revenues generated from digital downloads (Bloomberg, 2016). So how should we classify streaming? Is it akin to a download? Is it the new radio? Or is it a derived hybrid?
These questions are crucial for the rights of musicians and music creators because under the legal regime in the UK (CDPA 1988), a digital download or on-demand access to content (pulled media) is dealt with differently from a radio broadcast (pushed media). The former is governed by the 'making available' right and the latter by 'communication to the public'. This classification has an impact on the revenues that flow, the licensing deals that are in place, the rates that are set by the Copyright tribunal for online services, and whether musicians and music creators benefit and, if so, to what extent. While the nature of streaming services, the user experience, and the music market has changed in the last few years, the law in the UK has remained static. Consequently, the law is out of step with technological developments, market changes, and user habits in digital music consumption.
The proposed research will directly address a key challenge faced by musicians and music creators, and their representatives: the division of streaming income (Dissecting the Digital Dollar, 2015). It will be the first academic study that fully understands and evaluates the role and place of streaming services within digital music consumption, and assesses how the legal regime can be made fit for purpose through:
- Conduct of a systematic review of reports on development of, and recent changes in digital music consumption: streaming services, radio, and downloads;
- Evaluation of data from streaming platforms and radio plays, and industry insight on how remuneration flows from streaming services;
- Ethnographic research, and interviews with key digital platforms
and music industry stakeholders; and,
Comparison of the realities within the industry, and the market,
with the legal framework.
Streaming services have demonstrated rapid innovation and changed considerably in terms of what is on offer for their users. Initially, users could search and access specific content on demand, but now they can, in addition, create and share playlists, listen to curated playlists, and create their own virtual personalised radio stations. In parallel to the demand and uptake of streaming services, traditional radio has seen a decline; and streaming services have surpassed revenues generated from digital downloads (Bloomberg, 2016). So how should we classify streaming? Is it akin to a download? Is it the new radio? Or is it a derived hybrid?
These questions are crucial for the rights of musicians and music creators because under the legal regime in the UK (CDPA 1988), a digital download or on-demand access to content (pulled media) is dealt with differently from a radio broadcast (pushed media). The former is governed by the 'making available' right and the latter by 'communication to the public'. This classification has an impact on the revenues that flow, the licensing deals that are in place, the rates that are set by the Copyright tribunal for online services, and whether musicians and music creators benefit and, if so, to what extent. While the nature of streaming services, the user experience, and the music market has changed in the last few years, the law in the UK has remained static. Consequently, the law is out of step with technological developments, market changes, and user habits in digital music consumption.
The proposed research will directly address a key challenge faced by musicians and music creators, and their representatives: the division of streaming income (Dissecting the Digital Dollar, 2015). It will be the first academic study that fully understands and evaluates the role and place of streaming services within digital music consumption, and assesses how the legal regime can be made fit for purpose through:
- Conduct of a systematic review of reports on development of, and recent changes in digital music consumption: streaming services, radio, and downloads;
- Evaluation of data from streaming platforms and radio plays, and industry insight on how remuneration flows from streaming services;
- Ethnographic research, and interviews with key digital platforms
and music industry stakeholders; and,
Comparison of the realities within the industry, and the market,
with the legal framework.
