Source · Select Committees · Culture, Media and Sport Committee
Recommendation 14
14
Paragraph: 134
As long as the major record labels also dominate the market for song rights through...
Recommendation
As long as the major record labels also dominate the market for song rights through their publishing operations, it is hard to see whether the song will be valued fairly as a result. It is well-evidenced that redressing the disparities in relative value between the song and recording has occurred infrequently in the last few decades. Whilst the major music groups dominate music publishing, there is little incentive for their music publishing interests to redress the devaluation of the song relative to the recording. In its reference to the CMA (as recommended in paragraph 111), the Government should urge the CMA to consider how the majors’ position in both recording and publishing has influenced the relative value of song and recording rights. In its reference to the CMA (as recommended in paragraph 111), the Government should urge the CMA to consider how the majors’ position in both recording and publishing has influenced the relative value of song and recording rights.
Paragraph Reference:
134
Government Response
Acknowledged
HM Government
Acknowledged
The Government notes the DCMS Select Committee’s concerns about the possible market dominance of the major music groups and the potential for contractual agreements between the major music companies and streaming services to stifle innovation in the 10 Government and Competition and Markets Authority Responses streaming market. However, it also notes that the digital era has created many new and alternative ways for artists to create and release their music into the market place which were not possible in the physical era, including many independent labels, artists’ service companies, and the possibility for artists to upload their content directly on to streaming platforms such as Spotify. This is a complex area, so it is vitally important that any action by the Government be led by robust evidence. The CMA is an independent regulator. There may be value in a market study, but it is for the CMA to decide how best to use its resources to deliver its objectives in making markets work well for consumers and businesses. We have written to the CMA on this recommendation. In addition, the Government notes the recommendation for the (statutory) Digital Markets Unit to consider designating YouTube with Strategic Market Status (SMS). The Government launched its consultation on the pro-competition regime for digital markets in July, including proposals for the scope of the regime and approach to designation, and will legislate as soon as Parliamentary time allows. We propose that it will be for the DMU to determine which SMS designation assessments to undertake, subject to specified prioritisation criteria. Though not yet in statute, SMS designation will follow a robust, evidence-based assessment of substantial and entrenched market power in an activity that provides it with a strategic position. This methodology will be applied by the independent Digital Markets Unit within the CMA.