Lead with Resilience

Music Rights

The ownership of music rights is becoming a pivotal issue in the streaming industry, with significant implications for both artists and platforms. Scott Galloway explores the potential for major music labels, like Universal, to pull their catalogs from platforms like Spotify and Apple Music in favor of exclusive, subscription-based services. He notes that such moves could lead to consumer backlash, as music has an inherently egalitarian nature that could be disrupted by exclusivity 1.

The four largest music labels account for 87% of the content available on Spotify.

--- Scott Galloway

This concentration of power raises concerns about monopolistic practices and the potential for increased regulatory scrutiny 2.

   

Publishing Shifts

The publishing side of the music industry is also experiencing significant shifts, with major acquisitions and changes in power dynamics. Scott Galloway highlights the recent purchase of Simon and Schuster by Penguin Portfolio, Random House, illustrating the increasing concentration in the publishing sector. He points out that despite this consolidation, regulatory bodies like the FTC and DOJ have allowed these mergers, partly due to the looming threat of Amazon's dominance 3.

The distribution points have still figured out a way to get in between you and the end creators.

--- Scott Galloway

This consolidation often results in higher prices and lower innovation, as the power remains with the major labels and publishers, leaving artists and songwriters with a smaller share of revenues 3.