Select committee: Digital, Culture, Media and Sport Committee
Conclusion 21
Second Report - Economics of music streaming
Published 15 Jul 2021
Paragraph 171
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 ↗
Conclusion (the committee's words)
Safe harbour provisions that have been transposed into UK law have profoundly impacted the market for digital music consumption. YouTube’s dominance of the music streaming market shows that the market has tipped. Safe harbour gives services that host user-generated content (UGC) a competitive advantage over other services and undermine the music industry’s leverage in licensing negotiations by providing UGC-hosting services with broad limitations of liability. This has suppressed the value of the digital music market both in real and absolute terms even as these services generate multi-billion-dollar advertising revenues.
From: Digital, Culture, Media and Sport Committee, Second Report - Economics of music streaming (HC 50), paragraph 171, 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".