Source · Select Committees · Culture, Media and Sport Committee
Recommendation 10
10
Rejected
Paragraph: 69
Drive fundamental reform of music streaming based on commissioned research results.
Recommendation
The Government must take stock of the results of the extensive research it has commissioned and look at how it can drive fundamental reform of music streaming with a package of measures designed to make streaming work for all.
Government Response Summary
The government acknowledges creator concerns but states its current view is that industry-led dialogue and action, via the Creator Remuneration Working Group, is the best approach for addressing remuneration in music streaming. They will keep it under review and reserve the right to consider alternative measures if necessary, but currently do not commit to driving fundamental reform through a government-led package of measures.
Paragraph Reference:
69
Government Response
Rejected
HM Government
Rejected
The government wants to see a music streaming sector where the contributions of all parts of the industry are valued and rewarded, where investment is encouraged, and where great British music flourishes. Music streaming revenues have grown consistently in recent years, supporting investment in new music. Creators today enjoy more choice in how they finance and release their music, with increasing availability of deal types offering higher royalty rates. Many record labels have updated older contracts, increasing royalty rates and disregarding unrecouped balances. We encourage labels to go further. The government is pleased to see progress on music metadata and transparency, through groundbreaking industry agreements, which will benefit creators. The government recognises that many creators continue to have understandable concerns about remuneration and the split of streaming revenues. It is vital that discussions and policy-making in this area take place on an informed, evidence-led basis. The Competition and Market Authority’s (CMA) market study found that competition is unlikely to be the primary driver of concerns, and intervention risks unintended consequences. The IPO also commissioned independent research into three potential changes to copyright law: Introducing a legal right for performers to be paid under an equitable remuneration model; Giving creators a right to renegotiate their contracts; Giving creators a right to regain ownership of their rights. This research suggests these measures do not necessarily offer low-risk or low-cost solutions, potentially leading to significant unintended consequences like reduced industry investment. Given the challenges facing the music industry, it is especially important that the government gives careful consideration to the risks of intervention. Accordingly, the government’s current view is that the best way to address creator concerns on remuneration in music is through dialogue within industry and, where appropriate, industry-led action. Ministers approved the continuation of the Creator Remuneration Working Group, which met recently to discuss issues on older contracts. Ministers hope further progress can be made and reserve the right to consider alternative measures if necessary. The agreements on metadata and transparency demonstrate what can be achieved through an industry-led process. The Working Group must be afforded the fullest opportunity to explore remuneration issues, without prejudging any possible outcomes. We will keep this under review.