#TheWeeklyRoundUp - 10.03.23

Public Knowledge urges the FTC to investigate music streaming (Music Ally)

Stones overturned. Cans of worms kicked open. Cats flung into flocks of pigeons.

Whatever metaphor you prefer, the UK’s parliamentary inquiry into the economics of music streaming shone plenty of light into the workings of the modern music industry. Could the US now get its own high-profile probe, conducted by the Federal Trade Commission (FTC)?

Public Knowledge, one of the American organisations that campaigns around issues including open internet, freedom of expression and copyright law, certainly hopes so.

It has published a white paper called ‘Streaming in the Dark: Where Music Listeners’ Money Goes – and Doesn’t’ that it claims “shines a light on the dysfunction of the music streaming ecosystem”.

Its author, senior policy counsel Meredith Rose, published a separate blog post that nods firmly in the direction of the campaign launched by musician Tom Gray that sparked the UK’s inquiry.

“The streaming marketplace is fundamentally broken,” she wrote, zeroing in on the NDA-protected deals between rightsholders and streaming services.

“Artists aren’t allowed to see the deals that set their streaming payment rates; indie labels aren’t allowed to see the deals distributors cut with labels on their behalf. And in many cases, artists aren’t even allowed to compare notes and talk about their own contracts.”

Rose called for the FTC to “use its statutory power to pierce the NDA curtain, study this marketplace, and determine how and where the market is failing consumers and artists” to pave the way for reforms using tools “from antitrust law, to fair-dealing mandates, to app store regulation, to whistleblower protections”.

This is what Public Knowledge wants, but the big question, of course, is whether the FTC will take it up on the suggestion.

In the UK, we’ve seen competition regulator the CMA decline to launch a full investigation of the music industry, partly because it decided problems in the market were not competition issues (although partly, in our interpretation, for pure bandwidth reasons: it has a number of other big investigations on its plate).

The current regulatory climate in the US seems to be more focused on Big Tech, so whether there’s the appetite or resources for a probe into Big Music is unclear.

However, three of the four biggest music streaming services are owned by Big Tech companies (Apple, Amazon and Google) and Spotify is already big enough to have attracted the scrutiny of US politicians.

Some of the issues raised by Public Knowledge could thus be pulled into existing probes. In any case, whether you’re in sympathy with its views or vehemently disagree with them, the organisation’s report is worth reading: to understand what it’s calling for and why, and to think about whether that will hit home with the FTC.

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Northern Cape Govt funds R2.9m recording studio (SAMRO) Built at a staggering cost of R2,9 million, the Northern Cape Recording Studio is designed to help local talent with their music production. WHERE THE RECORDING STUDIO IS SITUATED IN THE PROVINCE Built at a staggering cost of R2,9 million, according to DFA, the Northern Cape Recording Studio has been structured at the Northern Cape Theatre in Kimberley. Northern Cape Premier, Dr Zamani Saul who welcomed the recording studios said it is in line with their Mzansi Golden Economy Strategy, through which they unleash the potential of the arts to contribute not only to social cohesion and nation-building but also to economic growth, skills development, and job creation. “This state-of-the-art facility, equipped with the latest recording technology and equipment will allow young people in the Province to record their music.” - Premier, Dr Zamani Saul WHAT THE NORTHERN CAPE RECORDING SITE ENTAILS The Northern Cape provincial spokesperson of DSAC, Conrad Fortune, told DFA that the studio will not only benefit local musos but will also attract other musicians from other parts of the country to the Province. “The Premier, Dr Zamani Saul, indicated that as the provincial administration, we have heeded the call of many young people who are yearning for opportunities to use their abundant artistic talents to build for themselves sustainable livelihoods. “They have requested their government to help them with performance spaces and opportunities to develop their skills so that they can be the best at what they do. This state-of-the-art facility will play a massive role in ensuring that our musicians do not migrate to bigger cities to record their music. It is also a facility that has the potential to attract artists to come to our Province to record their music. It is a facility that will play a key role in contributing to boosting cultural tourism, meaning that we can become a province of both adventure and cultural tourism,” he explained. Fortune said the facility is equipped with everything required for artists to record their work. “The studio is equipped with keyboards, drums, CD jays and various other equipment that can be used for recording music in different genres,” he said. THE PROCESS OF FORMAL REGISTRATION IS UNDERWAY He added that the registration of the facility is in process. “The Northern Cape Arts and Culture Council and the Cultural and Creative Industries Federation of South Africa (CCFISA) are in the process of developing policies and standard operating documents for the operations of the recording studio. They are also in the process of registering and ensuring that they fulfil all the requirements of the South African Music Rights Organisation (SAMRO),” he concluded.