Europe’s music sector must embrace open innovation to compete globally

Europe’s music sector can only stay competitive if it treats open innovation as a shared task. The ekip recommendations point to a simple idea: build the capabilities and structures that let many small actors work together, make audiences active partners in shaping better services, and back new ownership and business models with smart, long-term funding. Do this well and you get faster learning, fairer outcomes for creators, and a stronger pipeline of ideas that scale across borders.

POLICY RECOMMENDATION

Build technology, data and business skills across the ecosystem and strengthen creator organizations as open-innovation and bargaining hubs.

Most actors in the sector are small and cannot influence rules or invest in new tools on their own. Practical skills in digital literacy, metadata, rights and basic finance help artists and SMEs join pilots, improve data quality and adopt shared standards. Strong unions, collectives and representative bodies then bring these many voices together, coordinate positions and keep a steady loop between practice and policy. The result is less duplication, quicker problem-solving and a clearer path from experiments to services that work for the whole ecosystem.

“ekip’s recommendation emerged directly from our discussions with music industry stakeholders, where one message was repeated across almost every session: the sector lacks the skills, the data, and the unified voice needed to take full advantage of digital and platform-based opportunities,” says Ragnar Siil, director at Creativity Lab in Estonia and a partner of ekip.

Many artists and small organizations struggle to understand how to manage their rights, interpret data, or work with new tools — making them dependent on intermediaries and unable to fully participate in innovation.

“At the same time, the absence of strong, well-organized creator organizations makes it difficult to bring these fragmented voices together and influence key decisions.”

Ragnar Siil can see that strengthening both individual skills and collective representation is essential to empower creators, improve access to innovation processes, and ensure that the future of Europe’s music ecosystem is shaped by those who create its value.

“Without this foundation, efforts to build an open and inclusive innovation ecosystem will fall short.”

POLICY RECOMMENDATION

Empower audiences as co-innovators. Listeners are not just consumers.

When people understand how recommendations and payouts work, and can adjust discovery settings, they support diverse repertoires and fairer services. Audience panels, transparency dashboards and privacy-safe feedback turn platforms into living labs, shorten learning cycles and help creators and SMEs design features that meet real needs. This demand pull is vital for open innovation, because it guides investment toward tools that are trusted and used.

“It is important to view audiences as more than consumers since their input can drive innovation in many ways – if we let them,” says Lena Holmberg, Collaboration office at Lund University in Sweden and a partner of ekip.

Through open innovation users of music platforms can become co-innovators, which drive engagement and might lead to new and improved products and business models.

“This kind of data-driven interaction can also have an impact on investment streams since it indicates potential markets.”

POLICY RECOMMENDATION

Design funding that rewards cultural contribution, diversity and sustainability as drivers of innovation.

“Right now, we hear a lot about the importance of the European single market, but few talk about it in combination with innovation.” That is Charlotte Lorentz Hjorth’s, coordinator of ekip, conclusion.

When developing music platforms, it is essential to design them in a way that supports both sustainable growth and continuous innovation.

“This requires a new way of designing EU funding and support mechanisms, focusing on agility and collaboration for cross-innovation, by funding the birth of innovation portfolios in partnerships, rather than a single scalable startup.”

POLICY RECOMMENDATION

Support alternative innovation models for a fairer music ecosystem and finance them in a predictable way.

Co-operative, artist-led and public-interest platforms keep more value in local scenes and allow open testing of payout rules, governance and data practices. To grow these models beyond one-off pilots, Europe should introduce platform taxation targeted at the largest services, with clear rules and independent oversight. Revenues can be earmarked for the essentials of open innovation, such as data and rights infrastructure, open tools, training and digital literacy, living labs and diversity programs.

Giving platforms the option to invest directly in approved local projects or contribute to the fund, as seen in the film sector in some EU Member States, ensures money flows back into the ecosystem in ways that build capacity, spread benefits and improve long-term competitiveness.

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Link to the Policy Recommendation:

https://ekipengine.eu/policies/platformisation-of-the-music-industry/