Source · Select Committees · Culture, Media and Sport Committee
Recommendation 6
6
Paragraph: 77
We recommend that the Government legislate so that performers enjoy the right to equitable remuneration...
Recommendation
We recommend that the Government legislate so that performers enjoy the right to equitable remuneration for streaming income. Amending the Copyright, Design and Patents Act 1988 so that the making available right does not preclude the right to equitable remuneration, using the precedent set by the co-existence of the rental right and right to equitable remuneration in UK law, would be an effective solution. This would be relatively simple to enact and would appropriately reflect the diminished (and increasingly externalised) marginal costs of production and distribution associated with digital consumption. Furthermore, were the Government to do this by echoing existing UK law, this remuneration right would apply to the rightsholders (i.e. the record labels) rather than the streaming services.
Paragraph Reference:
77
Government Response
Acknowledged
HM Government
Acknowledged
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 4 Government and Competition and Markets Authority Responses to affect different parts of the music industry and how they might be achieved, including through potential legislation. It will also explore these issues through engagement with our music industry contact group and expects to update on progress in spring 2022.