22. For Artists signed with a Major Label, the system works. Yet, for ILIAs it doesn’t.
The difference lies in the market realities for Major Labels and ILIAs and the shift towards
streaming music instead of owning copies.
23. The Internet made way for many music Platforms, like Spotify, iTunes, Pandora,
YouTube, TikTok, iHeartRadio, and Amazon, to provide consumers with instantaneous access to
recorded music. In today’s digital world, individuals can find, play, use, or purchase recorded
music in hundreds of places. For example, suppose you hear a song you like on TikTok. Later,
you listen to that song on your personal Spotify account. Then, you decide to watch the music
video for that song on YouTube. You hear the same song, but you are interacting with it on a
number of distinct Platforms.
24. A music Platform’s success is dependent upon artists uploading their music to a
Platform’s website, i.e., artists are third-party posters that supply content (or music) to Platforms.
These Platforms then provide access to an artists’ recorded music to consumers to find, play, use,
or purchase.
25. Each Platform provides unique consumer experiences while also demanding
different requirements from the artists to post content on them. Indeed, for artists, a fundamental
feature of this digital market for recorded music is its disaggregation. Different Platforms require
different upload formats, have different payment methods, use different reporting, operate in
different languages, etc. In other words, the disaggregation of the market for recorded music leads
to massive administrative complexities for artists.
26. Artists can populate these music Platforms in two ways. An artist can sign with a
Major Label, or the artist can self-distribute using an independent label or individually.