European independent music sector trade body IMPALA has proposed a new plan to deliver “deep systemic changes” to the digital music market.
With the sector about to reach one billion subscribers on streaming services, IMPALA said the milestone was “something to celebrate”, while noting there is still significant potential for the market to become “larger, fairer, more diverse and transparent”.
The organisation says it has identified shared goals designed to grow the digital market “culturally, financially and sustainably”.
It has put forward five priorities “in the spirit of partnership and aimed at collaboration with both digital services, and labels and distributors”:
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Increase revenues and share them fairly, close value gaps
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Supercharge support for new, emerging and diverse music
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Establish trust through industry-wide provenance labelling
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Stop fraud and AI dilution, embrace responsible models
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Reduce climate impact and strengthen collective innovation
AIM CEO Gee Davy, co-chair of IMPALA’s working group, said that one billion subscribers indicated “a mature digital music market capable of delivering widespread success”.
“We see this as a moment for an ambitious but achievable plan to create a well-functioning market where genuine music flourishes and all attempts to game the system are stamped out,” she said. “Success in a mature market requires exciting, differentiated offerings and collaboration on shared goals. We welcome new opportunities for fan engagement as well as the growing recognition that fighting fraud and fakes need industry-wide collaboration.
“We also believe there is an opportunity, and an urgency, to collaborate on key areas that have the potential to be transformative and drive growth, which we have set out in five clear priorities. We invite our key commercial partners in the digital space to join us in making this a reality.”
If we succeed with our shared ambition, connections with fans will be stronger and more working artists and labels at different levels in the ecosystem will be able to make a living from their art
Helen Smith, IMPALA
Adopted by the IMPALA board at the end of June following a two-month review, the proposals build on previous recommendations by the trade body, in addition to recent analysis by author Dan Fowler and the EU's recent report on discoverability in Europe.
Mark Kitcatt, co-owner and MD of Everlasting Popstock, co-chair of IMPALA’s working group, said: “Our members believe that the promise of digital music is connection between artists and fans, and our proposals aim to strengthen this.
“At the same time, we question the impact of certain measures on the health of the market, such as monetisation thresholds, the scope of free-tier offerings, as well as current pricing and the obligation to continue to deliver all repertoire. Collaborating on these proposals from the independent sector will stimulate new investment in groundbreaking new music and support for the artists who create it.”
Dario Drastata, chair of IMPALA, president of regional association RUNDA Adria and executive director of Dallas Records, said: “We support the increasing calls from some for regulation, but with this plan we suggest using them as an opportunity to improve, in order to pursue ambition, experimentation and collaboration, so that we level the playing field as much as possible and let healthy market competition grow. We will be assessing the progress in 12 months and ask our partners across the ecosystem to help us in doing this.”
Francesca Trainini, IMPALA president and board member of Italian association PMI, said: “Recent reports highlight what can be achieved through clear, dynamic collaboration across the industry. The opportunity for a sector wide provenance system is clear. Done right, provenance standards will become the foundation for new discovery tools, fan experiences, licensing solutions and commercial opportunities across the digital music economy.”
Established in 2000, IMPALA now represents more than 6,000 independent music companies in Europe.
“As our plan concludes, if we succeed with our shared ambition, connections with fans will be stronger and more working artists and labels at different levels in the ecosystem will be able to make a living from their art,” added IMPALA executive chair Helen Smith. “The music economy will offer greater and more sustainable opportunities. This will set a new standard, help keep regulation to a minimum and underline the leadership role of the music sector in terms of trust and transparency.”
