New report of the Fair MusE project

The latest report from the Fair MusE Project - "From Value Networks for Recorded Music to Music Ecosystem" - dives deep into how Music Streaming Services (MSS) and User-Generated Content (UGC) platforms are reshaping the music industry’s value landscape. This shift in the industry is about more than just a digital transformation; it's fundamentally changing how power, access, and revenue flow through the music ecosystem.

A New Layer of Gatekeeping

With the rise of MSS platforms like Spotify and UGC platforms like YouTube, traditional routes for accessing and promoting music have been redefined. These platforms now serve as powerful gatekeepers, determining which artists and tracks gain visibility. This influence reshapes who has control over exposure and, ultimately, success. Rather than simply distributing music, these platforms filter content through algorithms, strategically showcasing certain songs while others remain hidden, based on complex calculations that prioritize user engagement and platform profits.

Navigating and negotiating the new landscape

Despite the power of these platforms, traditional stakeholders, particularly major record labels, are finding ways to adapt. Labels are leveraging their vast artist rosters and music catalogues to secure valuable partnerships with MSS and UGC platforms. By doing so, they maintain a degree of influence over what listeners see and hear, reinforcing the competitive dynamics in the industry. The relationships between labels and streaming platforms can be seen as a balancing act, as both sides negotiate control, exposure, and revenue shares.

A shift from value networks to a music ecosystem

Approaching the music industry as an interconnected ecosystem reveals the complex interdependence between streaming and UGC platforms, labels, artists, and audiences. This ecosystem perspective helps contextualize the ongoing evolution, but it also exposes fairness concerns. For example, algorithmic curation tends to spotlight content from major labels, reinforcing their dominance. The current payout models on platforms like Spotify and YouTube often favor big players, leaving smaller artists and independent labels in a more precarious position.

➜ Full Report

If these insights spark your interest, the Fair MusE report also has a systematic review of academic literature on music streaming including case studies on both Spotify and YouTube. For the full tracklist of findings and analysis, check out the complete Fair MusE report: https://fairmuse.eu/wp-content/uploads/2024/10/D3.1_Value-Networks.pdf