Don’t stop believing…in competition

The streaming music industry is a thriving and growing marketplace with established competitors and new entrants pushing each other to innovate, ultimately giving the consumer more options on how they listen to their favorite artists. As the streaming marketplace has grown, we’ve not only seen a shift toward consumer-friendly features, but also, recognition of responsibility to balance the interests of consumers and music creators. Apple Music paved new ground in the music streaming industry by not offering a “free” ad-supported tier. They rejected the streaming industry norm to build a base of music lovers at the expense of music creators. While the principle of fair compensation isn’t new, it’s certainly been a foreigner in the land of music streaming. Apple Music has breathed new life into the future of music streaming services. They have the potential to demonstrate that fairly compensating creators and making a profit aren’t mutually exclusive.

{mosads}But if Spotify had it their way, Apple Music wouldn’t exist. Even before Apple Music was launched, complaints were filed against them regarding the terms on their contracts with record labels, with no evidence to support their claims. Lobbyists were hired and questions were raised in the halls of Congress about possible other antitrust violations. I am concerned that these unfounded allegations were made in an attempt to prevent Apple Music from entering the marketplace. Thankfully for consumers and creators alike, Apple Music had resources to fight the baseless claims, but think of all the future streaming services that won’t have the deep pockets of Apple to fall back on. Established industry participants should welcome the growth of the streaming marketplace, particularly when new market entrants promote a value chain that benefits the entire music ecosystem. Content providers should be free to contract with streaming services without the specter of unsubstantiated claims made to gain a competitive advantage.

Marketplace competition increases productivity and efficiency and is critical to spur and encourage innovation. Competition is good for consumers and the economy, and can even be good for competitors themselves because it causes them to constantly grow and innovate.  Technology has led to many changes, changes that are particularly clear in the variety of ways we have available today to purchase and listen to music. That is not a stagnant market, already filled. Music streaming is a market that will continue to grow, and competition drives that growth in the music industry and other sectors of the economy.  Competition encourages new and creative ideas and ultimately provides a better product for the consumer, and in the case of Apple Music, the music creators.

Antitrust laws should not be misused by established players to hamstring nascent competitors and preserve existing business models.  The government is not there to pick winners and losers, but rather to protect competition itself. Competition should be embraced for what it is—a chance to provide different experiences to different customers with discerning tastes, and a spark to force companies to continue to innovate and evolve to meet changing desires and needs.

Collins has represented Georgia’s 9th Congressional District since 2013. He sits on the Rules and the Judiciary committees, and is vice-chairman of Judiciary’s Subcommittee on Courts, Intellectual Property and the Internet.