Select committee: Digital, Culture, Media and Sport Committee
Recommendation 19
Second Report - Economics of music streaming
Published 15 Jul 2021
Paragraph 159
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)
The market for streaming services itself is fiercely competitive. However, there is the potential that companies may leverage other aspects of their business or elsewise use vertical integrations to gain a competitive advantage; indeed, some jurisdictions have considered that this is already happening in some areas. It is important that the UK has a regulatory regime to respond to these challenges. We are encouraged that the CMA has already launched its Digital Markets Unit, which is undertaking important work in this area within the scope of the CMA’s current powers, but to ensure proper compliance the DMU needs to be put on a statutory basis as soon as possible. The Government should launch its consultation on the new pro-competition regime for digital markets by the time it has responded to this Report and commit to a reasonable timeframe (to which it can be held accountable) for when it reasonably expects legislation to be brought forward thereafter.
From: Digital, Culture, Media and Sport Committee, Second Report - Economics of music streaming (HC 50), paragraph 159, 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".