Select committee: Digital, Culture, Media and Sport Committee
Recommendation 8
Second Report - Economics of music streaming
Published 15 Jul 2021
Paragraph 94
Addressed to Department for Culture, Media and Sport
Digital, Culture, Media and Sport Committee Economics of music streaming All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Metadata issues compound the poor terms on which creators are remunerated. Whilst there is a significant challenge, it is not insurmountable. First, the Government must oblige record labels to provide metadata for the underlying song when they license a recording to streaming services. Second, it should push industry by any means necessary to establish a minimum viable data standard within the next two years to ensure that services provide data in a way that is usable and comparable across all services. Third, it should work with industry to end the practice of distributing black boxes pro rata and, instead, place obligations on collecting societies that mean that this revenue is reinvested in the industry, such as to support creative talent and or develop solutions to revenue distribution issues. The Government should concurrently commission an exploratory audit of black boxes to achieve greater clarity as to what is genuinely impossible to allocate and what is mis- or un-allocated due to a lack of will. Finally, the Government should explore the practicalities of creating or commissioning a comprehensive musical works database and task the IPO with co- ordinating industry work on a registration portal so that rightsholders can provide accurate copyright data to necessary stakeholders easily.
From: Digital, Culture, Media and Sport Committee, Second Report - Economics of music streaming (HC 50), paragraph 94, 15 July 2021
Government response
The government responded to the whole report on 22 September 2021 (deadline 15 September 2021).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government welcomes the Committee's report but says "more targeted research and evidence is needed" before it decides action on some issues, and sets out a work programme of contact and working groups and research, with a review in spring 2022.
- On equitable remuneration and new creator rights, the Government says impacts are "difficult to predict" and will assess models, "including through potential legislation", with an update expected in spring 2022.
- On transparency, the Government's view is that the industry "can, and should, seek to fix itself"; an industry-led working group is to report after 6 months, and it "will consider whether legislative intervention is warranted" if the outcome is unsatisfactory.
- It will not take forward the recommendations on publishing royalty chain information or on black box revenues, giving feasibility and existing regulation as its reasons. It also "disagrees" with the recommendation on the Music Export Growth Scheme and a fiscal incentive.
- On the market study, it notes the Committee's concerns and says it is "for the CMA to decide" how to use its resources, while having written to the CMA. It will legislate on the Digital Markets Unit "as soon as Parliamentary time allows".