Select committee: Digital, Culture, Media and Sport Committee
Recommendation 24
Second Report - Economics of music streaming
Published 15 Jul 2021
Paragraph 183
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 debate between the predominant pro-rata payment model and alternative methodologies such as user-centric has been compelling. It is positive that new services are inventing new and creative ways to address creators’ and consumers’ concerns about the fairness and transparency of creator remuneration from streaming. We are concerned, however, that current contractual agreements between the major music companies and streaming services have the potential to stifle further innovation if they are misused. The CMA should consider in its case (recommended in paragraph 111) whether these agreements have the potential to (or indeed have already) prevented experimentation and innovation by streaming services.
From: Digital, Culture, Media and Sport Committee, Second Report - Economics of music streaming (HC 50), paragraph 183, 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".