Source · Select Committees · Culture, Media and Sport Committee
Recommendation 11
11
Paragraph: 122
The Government must make sure that UK law is not enabling the outcome of market...
Recommendation
The Government must make sure that UK law is not enabling the outcome of market dominance. This means that independent labels must be supported to challenge the majors’ dominance and creators must be empowered to offset the disparity in negotiating power when signing with music companies. The Government should expand support for the Music Export Growth Scheme to allow British music companies to compete with the multinational majors and provide the resources needed for them to survive and thrive in export markets. This scheme must be appropriately targeted at independent British companies. To prevent the further acquisition of successful rights by the majors and ensure greater competition, the Government and BPI should also place clauses in grant funding awards that a company or artists’ rights cannot be acquired by the major music companies for a certain period of time. Moreover, the Government should bring forward proposals for a focused fiscal incentive for the independent music sector, similar to that which exists in TV, animation, film, theatre and gaming.
Paragraph Reference:
122
Government Response
Not Addressed
HM Government
Not Addressed
The Government disagrees with this recommendation. The aim of the Music Export Growth Scheme (MEGS) is to overcome the market failure of UK independent music small and medium enterprises (SMEs) having insufficient funds to run high-quality marketing campaigns to break into new territories. It is not a scheme that has a remit to address structural and commercial issues within the music industry, such as the management of artists’ rights. With regard to a focused fiscal incentive for the independent music sector, tax policy is the responsibility of the Chancellor of the Exchequer and HM Treasury. In addition, fiscal measures are considered at fiscal events as part of a wider assessment of the public finances and of the economy.