London and Brussels, 3rd February 2026

The ability of Europe and the music sector to sustain a diverse and competitive ecosystem is the subject of a new report, ‘Powering an Independent and Culturally Diverse European Music Ecosystem’, published today.

The report calls for “an urgent rethink” to address challenges and maximise opportunities and is addressed to policymakers and stakeholders across the music value chain. “Issues of ownership, investment and oversight are also fundamental; it is as much a question of sovereignty and democracy as an economic and cultural imperative in all jurisdictions.” 

The analysis has been carried out by industry expert Dan Fowler on behalf of IMPALA following the report “Combating the Emergence of a Two-Tier Music Streaming Market” in June 2025. The new report identifies the independent music sector as an “economic engine”, highlights structural issues which impact the whole ecosystem and asks key questions:

Will Europe’s music ecosystem remain vibrant, diverse, and globally competitive, or will it continue to consolidate around a narrow band of content that reflects commercial convenience rather than cultural richness? Who will be in control of the ecosystem? Will Europe be a player? Will European artists in all their diversity get the spotlight they deserve?

The report puts forward six critical recommendations:

1. Increasing focus on a wider range of financing options
2. Guaranteeing Independent European infrastructure and fair access to markets (digital and other)
3. Reinforcing voluntary collective negotiation
4. Embedding cultural diversity and plurality in digital market frameworks
5. Making diversity a measurable, trackable priority
6. Supporting industry collaboration and standards to protect independence

“In summary, a culturally diverse ecosystem in Europe requires strong independent European music companies and infrastructure at its core, supported by significant investment, targeted regulatory oversight and ambitious collaboration within the sector. As the wider, global, political landscape continues to change radically, we face a critical point in history that necessitates an urgent rethink by regulators and the sector.”

The report explains what implementing these recommendations looks like, with concrete examples designed to present concrete opportunities as well as address challenges. Market concentration, financial and data asymmetries, intentional co-opting of an “independent” identity, as well as other factors, such as the rapid rise of generative AI and streaming manipulation, are cited as “severe tests that need to be overcome to maintain a healthy ecosystem”. The report notes that: “Despite Europe’s world leading position as a source of incredible diversity and talent, most of the power is effectively in the hands of non-European businesses“. Cultural diversity as an opportunity and key indicator of a strong music ecosystem is also assessed, as well as the conditions needed for growth and the role of the independent sector as the engine of Europe’s cultural diversity. 

Dan Fowler author of the report commented: “Independence is synonymous with cultural diversity. It is a huge strategic opportunity for Europe, and the whole music sector. Decisions taken right now and in the coming years will determine our future. As the wider, global, political landscape continues to change radically, we face a critical point in history that necessitates an urgent rethink by regulators and the sector.”

Helen Smith, IMPALA Executive Chair added: “Last month, IMPALA issued a call to both the industry and decision-makers to “stand up for culture“. This new report sets out not only why that is an economic, cultural and democratic necessity, but how it can be achieved in a way that benefits the whole market and Europe as a world leader.”

Dario Draštata, Chair of IMPALA, President of regional association RUNDA Adria and Executive Director of Dallas Records continued: “These recommendations come at an essential time. The question of ownership and control of our infrastructure is fundamental. For markets already making a huge contribution to diversity, such as south and central Eastern Europe, the opportunities are clear if we take the right path.”

Francesca Trainini, IMPALA President and Vice President of Italian association PMI commented: “When we read Dan’s streaming report last year, we learned that the sector needs a set of KPIs based on diversity and the value of creative labour. What we see now is that the issues at stake go even further. This is a job for the industry as well as regulators and the cumulative impact of their decisions will determine whether value can still flow to creators.”

Gee Davy, CEO of AIM, Association of Independent Music, added: “With award season starting last weekend at the Grammys, this report is a good jumping off point for reflection across the whole sector. Big or small, artist or label, publisher or author or manager, this is an opportunity to unite around a strategic plan which supports emerging, diverse and niche music. This is vital to ensuring a future filled with incredible music.”

Mark Kitcatt, Owner of Everlasting Records and Popstock Distribuciones, Chair of WIN, Worldwide Independent Network continued: “This new report provides further impetus to take urgent action. We need strong and independent European infrastructure to support artists and grow more big music businesses in the independent sector. This is the case not just in Europe but across the globe. We cannot leave decisions about culture to a tiny handful of corporations in the world. It is a question of sovereignty and common sense.”

The report’s executive summary is set out below, with the full report here and infographic version here:

Executive Summary

Cultural diversity drives a resilient, innovative, and globally competitive European music ecosystem. It fuels the export of distinctive creative content, while strengthening communities and sustaining local economies. Independence is synonymous with cultural diversity. Independent music businesses that are artist-first and comfortable with creative risks by necessity, are the infrastructure through which diversity thrives. 

Independence, and by extension cultural diversity, faces acute structural challenges. Market concentration, financial and data asymmetries, intentional co-opting of an “independent” identity, as well as other factors, such as the rapid rise of generative AI and streaming manipulation, are providing severe tests that need to be overcome to maintain a healthy ecosystem. 

Issues of ownership, infrastructure, investment and oversight are fundamental. This is as much a question of sovereignty and democracy as it is an economic, social, and cultural imperative; a challenge and an opportunity.

European institutions, national governments, and the music sector at large, must recognise the independent sector as a unique economic engine, a cultural custodian and a key pillar of soft power. To secure a future of diverse culture and maximise the opportunities that this brings, we recommend:

1. Increasing focus on a wider range of financing options: Effective Europe-wide investment in cultural diversity requires a range of potential routes for companies and artists to finance their endeavours and grow, ranging from public to private to public-private initiatives.

2. Guaranteeing independent European infrastructure and fair access to markets (digital and other): Independent companies can only reliably invest in new artists with free and fair access to markets (digital and other), without dilution of opportunities and revenue.

3. Reinforcing voluntary collective negotiation: The right to choose collective options for licensing must be protected as it remains the most effective way to ensure small and independent rightsholders can monetise their works in a global market.

4. Embedding cultural diversity and plurality in digital market frameworks: Diversity must be explicitly recognised within digital services, platform governance and AI framework regulation, as well as competition regulation and other essential oversight tools.

5. Making diversity a measurable, trackable priority: A European Music Observatory could gather data on performance and ownership, functioning as an evidence base for an industrial strategy, built in concert with wider cross-border initiatives with the UK and other 3rd countries.

6. Supporting industry collaboration and standards to protect independence: Industry-led collaborative action to build an optimal ecosystem, agree on terminology such as “independent”, and more, will deliver enhanced clarity and trust without the need for further regulatory oversight. 

In summary, a culturally diverse ecosystem in Europe is a huge asset, which requires strong independent European music companies and infrastructure at its core, supported by significant investment, targeted regulatory oversight and ambitious collaboration within the sector. As the wider, global, political landscape continues to change radically, we face a critical point in history that necessitates an urgent rethink by regulators and the sector.

These recommendations are aimed at the industry as well as European and national decision makers. They align with the European Work Plan for Culture (2023–2026) and the objectives of the UNESCO 2005 Convention on the Protection and Promotion of the Diversity of Cultural Expressions, which commits signatories to ensuring diversity in the digital environment. 

Furthermore, these recommendations fit well within the scope of the European Commission’s Culture Compass for Europe (launched in 2025), and emphasise the need for the ecosystem around music to be a key area of focus as Culture Compass plans are developed. 

Music Moves Europe, the European Commission’s umbrella initiative dedicated to music, cites “promotion of European music diversity and inclusion” as one of its key six strategic priorities, further indicating that there is wide support dedicated towards the progression of a culturally diverse and independent music ecosystem.