Recommendation 1

HM Government Not Addressed

The publication of the Committee’s report is a key moment for the music industry. The Government welcomes it and thanks the Committee, and all those who contributed to its inquiry, for its work. This is a welcome opportunity to reflect on the relationships between artists, record labels and streaming platforms, and the role of the Government in supporting a thriving music industry. The rise of digital technology has had a profound impact on the recorded music industry. It has made it easier for artists to record music and make it available online and has transformed how creators earn their income. It has also made music more accessible to consumers than ever before. On-demand streaming is now the main source of revenue for the recorded music industry in the UK. But, as the Committee’s report highlights, many music creators are calling for reforms because they feel that they do not get a fair deal from streaming. The Government will shortly publish the “Creators’ Earnings in the Digital Age” research, which was commissioned by the Intellectual Property Office. It is the most comprehensive study of music creators’ earnings ever completed in the UK and shows that the rise of streaming has brought great benefits to consumers and the music industry. Music lovers have access to a far wider range of music than ever before. Revenues from streaming continue to grow, and it has been central to the industry’s recovery, with revenues approaching their pre-filesharing peak of 2001. There are also more music creators who can release their music. But although overall music revenues are growing, many more creators are competing for a share of them, and there are many different and strongly-held views about how streaming revenue should be split to ensure fair outcomes. There is also concern that our regulatory frameworks, including copyright, have not kept pace with the changes brought about by streaming. The evidence generated from the inquiry, the Committee’s report and the independent creators’ earnings research have provided invaluable insights into the streaming environment. They show that there is still work to be done to understand the problems musicians are facing, and what impacts the various solutions proposed might have on them and the wider music industry. More targeted research and evidence is needed before the Government can decide what action it should take on some of the issues highlighted by the Committee.