Universal Music Chief Lucian Grainge Slams Streaming Economy: ‘We Need an Updated Model'

Universal Music Chief Lucian Grainge Slams Streaming Economy: ‘We Need an Updated Model’

Variety have reported that In his annual letter to the company’s staff, Universal Music Group Chairman/CEO Lucian Grainge has taken aim at the existing model for the music-streaming economy, saying it has become outdated as the format has grown and “needs to evolve.”  

Amid many other updates in the letter, dated Jan. 11 and obtained by Variety, he writes, “What’s become clear to us and to so many artists and songwriters — developing and established ones alike — is that the economic model for streaming needs to evolve. As technology advances and platforms evolve, it’s not surprising that there’s also a need for business model innovation to keep pace with change… Under the current model, the critical contributions of too many artists, as well as the engagement of too many fans, are undervalued.”

In the letter, he also slams the algorithms that streaming platforms use to direct users to music, sometimes with less-than-artistic motives. He also reiterated his alarm at the vast amount of music being uploaded to platforms, which can exceed 100,000 songs per day.

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UniversalMusic Chief Lucian Grainge Slams Streaming Economy - Variety