Source · Select Committees · Culture, Media and Sport Committee
Recommendation 4
4
Paragraph: 69
The major music companies and independent record labels have consistently asserted that music streaming is...
Recommendation
The major music companies and independent record labels have consistently asserted that music streaming is straightforwardly ‘making available’, and therefore performers should be remunerated as though it was a sale. However, this classification does not consider the complexities of streaming that sets it apart from other modes of consumption. For example, it also has the characteristics of a rental and a broadcast, which are consumed by exploiting copyright controls that provide performers with a statutory right to equitable remuneration. Furthermore, this classification creates inconsistencies in comparison to the song rights. Finally, precluding the making available right from equitable remuneration does not capture the realities of costs associated with the distribution of digital music. We recommend that the Government addresses these inconsistencies and incongruities by exploring ways to provide performers with a right to equitable remuneration when music is consumed by digital means.
Paragraph Reference:
69
Government Response
Not Addressed
HM Government
Not Addressed
The Government notes the evidence presented to the Committee that the contractual arrangements between performers, labels and platforms appear to disadvantage some players in the streaming environment. This is corroborated by the Creators’ Earnings research. It highlights the complexity of artists’ remuneration, which is compounded by a lack of transparency. It shows that earnings from streaming are distributed unevenly, with the largest share going to recording rightsholders, and the most popular artists receiving a much greater share of streaming revenue than lesser-known artists. Many music creators believe these revenue shares are unfair, and that the proportion being paid to them should increase. Our research suggests that a sustained achievement of around 1 million UK streams per month may be a minimum threshold for making a sustainable living out of music (alongside other sources of income). However, as the research notes, rewards in the music industry have long been skewed towards the most popular artists. Record companies justify their earnings based on their investment in the industry, including the significant risks they take on when signing new talent. The Committee recommends legislation on equitable remuneration to improve performers’ income. Many testimonies to the inquiry noted that this type of change might not be in the interests of all performers and could result in lower revenues for some. For example, some featured artists may receive better revenue under the current arrangement than they might under an equitable remuneration right. This suggests that changes could have significant impacts which are difficult to predict and must be investigated and better understood. This is a complex area and the Government takes the concerns of music creators seriously. This is why we are launching work to better understand issues of fairness in creator and performer remuneration. As part of this work the Government will assess different models, such as equitable remuneration and the artist growth model, to explore how they are likely