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With the growth of music streaming, recorded music is now also costing consumers less overall compared to when CDs and other physical formats were more popular, as indicated by UK recorded music revenues falling by around 40% from £1.9 billion in 2001 to £1.1 billion in 2021 in real terms
In terms of the level of use, there are marked differences across age groups. Of online music service users aged 16 to 34, around 4 in 10 listen to a streaming service several times a day; that proportion is four times higher than for users aged 55 and over.138 For most services captured in Ofcom’s audio survey, this pattern of higher use by younger age groups is mirrored (with a notable exception of Amazon)
We have observed that the majors’ recording licences usually contain detailed specifications of the functionality parameters which authorise what the music streaming service is permitted to do within each ‘tier’ of its service...These clauses are also more prescriptive in relation to ‘free’ (ad-funded) tiers. These specifications typically...
(a) Clauses that limit the audio quality that a track must be delivered in. These clauses set a maximum audio quality that cannot be exceeded and which will generally be lower than that offered in the paid-for subscription tiers.
(b) Clauses that limit the number of times a listener can skip and/or repeat tracks during each hour of listening time.
(c) Clauses that set a minimum number of ad interruptions that must occur during each hour of listening time (a minimum of six interruptions per hour is typical).
we think that these clauses indicate that the majors are able to
exercise greater control over how their intellectual property is exploited
Change of business model
A few agreements contain clauses which empower a major to: (i) propose amended terms to its agreement with a counterparty music streaming service if that counterparty enters the upstream market (ie offers recording contracts to artists) and such entrance results in the counterparty music service owning more than a certain percentage of music on its own service; and (ii) terminate the agreement if the major and counterparty music streaming service are unable to agree on amended terms.
Cambio de modelo de negocio
Algunos acuerdos contienen cláusulas que facultan a una importante a: (i) proponer términos modificados de su acuerdo con un servicio de transmisión de música de la contraparte si esa contraparte ingresa al mercado ascendente (es decir, ofrece contratos de grabación a artistas) y dicha entrada da como resultado el servicio de música de la contraparte. poseer más de un cierto porcentaje de música en su propio servicio; y (ii) rescindir el acuerdo si el servicio de transmisión de música principal y el de la contraparte no pueden ponerse de acuerdo sobre los términos modificados.
