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Platformisation of the Music Industry
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Curated by members of ekip, this list highlights selected policy recommendations related to platformisation of the music industry.
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The platformisation of music has democratised distribution but flooded platforms with content, favoring major labels and leaving most artists struggling. Streaming has eroded middle-class earnings, while AI and algorithms often confine growth to national markets. Diversification into social audio, such as live audio discussions and community interactions, and short videos is growing, but sustainable revenue models remain a key challenge. Despite these challenges, data-driven insights and evolving platform services offer new opportunities for artists and labels. Below is a selection of policy recommendations related to platformisation of the music industry.
Among the priorities and actions suggested, the European Composer and Songwriter Alliance (ECSA) advises to “Fix music streaming and make it sustainable for music creators by implementing the European Parliament recommendations adopted in 2024” and to “ensure generative AI respects the rights of creators, and the fundamental principles of consent, transparency and remuneration.”
In January 2024, the European Parliament adopted a resolution highlighting the need to address music revenue imbalances, where creators often receive minimal compensation, and condemning payola practices that reduce artist earnings in exchange for visibility. MEPs propose measures to promote cultural diversity, including quotas for European musical works and transparency in algorithms to prevent unfair practices like manipulation of streaming figures. The resolution also calls for labels to identify AI-generated songs, action against deepfakes misusing artists’ identities, and updated royalty systems to reflect the digital age.
MusicAIRE holds the following recommendation on the implementation of cascading grants: “Support though small-scale mono-beneficiary grants. There is a need for a support scheme for small-scale funding and mono-beneficiaries designed and evaluated by the sector, adapted to their needs and aesthetics – to allow small emergent organisations to apply and test new ideas.”
This report explores the European music ecosystem’s shift from traditional value chains to a dynamic, interconnected network driven by digitisation and globalisation. It highlights challenges like inequality and market consolidation alongside opportunities for innovation and collaboration. Leveraging European values of openness and inclusivity, the report calls for targeted investments and holistic policies to strengthen the ecosystem’s resilience and global competitiveness.
