IGMP question

I recently purchased a new switch with IGMP snooping support, so I could swith some Multicast traffic rather than having a single ethernet cable between the source and the destination.

I've discovered the switch is dropping IGMP Membership reports, so if there are multiple switches in the path IGMP doesn't work properly.

The vendor has confirmed the switch will drop membership reports, and instead sends out general group membership queries to establish Multicast sources.

Surely this means that IGMP will only work correctly if the Multicast source is upstream of a router, and all IGMP on the local LAN is broken?

Edit: Looking at some Cisco docs it implies its the same for their switches. Is this just how it works?

Thanks