Hi there -

It certainly feels timely that just as streaming growth is reported to be slowing down, Universal's chairman Lucian Grainge has stepped forth and confirmed what he has indicated in the past, namely that 100,000 tracks a day being added to DSPs is creating a long tail of sub-par music (in his view) and which is working against the better interests of Universal and its artists.

In fact, Grainge goes one step further, suggesting that the entire streaming model is in need of a new payout structure - news that certainly won't help Spotify's uninterrupted downward spiral of a share price.

So does he have a point? I suspect there's not enough space to really dive into that here, but some might argue Grainge is now turning on a system Universal had a massive hand in supporting and creating. 

Grainge speaks of "innovative, artist-centric" models. Bandcamp, if you ask most artists using it, is precisely that, in its ability to empower them, driving direct connections with fans, as well as means to get vinyl pressed and even present live streams, all of which then delivers funds back to those artists promptly. And yet, last time I checked, Universal has no deal in place with Bandcamp and its artists are entirely absent from the platform.

So, when he speaks of artist-centric models that will be a win for artists, fans and labels alike, one cannot help but take the cynical view that what he really means is this being a win for Universal first, and everyone else second.

After all, who is Lucian Grainge to say which artists are "worthy" and which are not? To some, marginal artists who doubtless sit in the long tail on DSPs that he takes such issue with might well a favourite band to you or me.

Again, I do actually feel that having rising artists and DIY ones etc on separate platforms might not be such a bad thing. If people want the premium Taylor Swift streams, let them pay for it. Equally if they want to stream Wordsound's mighty Spectre (a marginal artist of some 25 years standing), let them do so via Bandcamp where the artist might actually see some meaningful income.

If the issue is that the streaming model does not work, I am in agreement. I think a lot of people are now. However from there I suspect we're at opposing ends. Grainge wishes to see Taylor Swift and other UMG artists earn more. I would just like to see rising artists stand a higher chance of making a living.

So yes, a new model is needed. However letting Universal guide that is risky. On a certain level I applaud the company's intention to innovate in this space, but equally I think the peril there is that anything innovated by Universal will be guaranteed to benefit Universal first and everyone else second. Maybe the other majors will get some parity, but the indies? That's a whole other matter.

Approach with caution.

Have a great evening,

D.

🎶 written whilst listening to Gescom's "Mag (Ae Remix)", a cyclical breakbeat gem of a track from Autechre's alter-ego. It came to mind after Asher here at MU shared this gem of a mix from Autechre compiling some of the tracks they made around the time Warp dropped the first Artificial Intelligence album. Wonderful stuff - check it out.