A view of the sky line including Tower Bridge and the Shard at dusk on June 26, 2019 in London.
A key recommendation of that report, produced by the Digital, Culture, Media and Sport Committee, was that competition regulators should conduct a “full market study” into the economic impact of the majors’ dominance. In response, the government says it has requested that the CMA “gives consideration to the Committee’s recommendation,” although it steers clear of a direct endorsement.
Last week, the CMA launched an “in-depth” phase two investigation into Sony's $430 million acquisition of Kobalt Music Group's independent distribution and label division AWAL.In the U.K., the majors -- Universal Music Group, Warner Music Group and Sony Music Entertainment -- make up 75% of the recorded music market, with independents accounting for the remaining 25%, according to the Association of Independent Music.
While the government acknowledged that “contractual arrangements between performers, labels and platforms appear to disadvantage some players in the streaming environment” it noted that equitable remuneration “might not be in the interests of all performers and could result in lower revenues for some.