UK MPs call for a ‘complete reset’ of music streaming to fairly reward performers and creators according to a report of the DCMS Committee into the Economics of Music Streaming. The inquiry was launched in October 2020 and received from than 300 pieces of written evidence from artists, songwriters, producers, record labels and streamers including Spotify, Amazon, Spotify and YouTube.
The committee found that successful artists see ‘pitiful returns’ from streaming while some performers are frozen out of payments altogether. It concluded that artists must be given a legal right to a fairer share of revenues from streaming.
Key findings of the report
- Comprehensive reform of legislation and further regulation is needed, not only to redress the balance for songwriters, performers and composers, but to tackle fundamental problems within the recorded music industry.
- Services that host user-generated content gain significant advantage on copyright with YouTube emerging as a dominant player.
- There are ‘deep concerns’ about the unassailable position of the major music companies with a call for the Competition and Markets Authority to examine whether competition in the recorded music market is being distorted.
- Though consumers enjoy music that is historically cheap, more personalised and more readily available than ever before, streaming’s short-term pricing structure puts music at risk in the long-term.
The Chair of the DCMS Committee Julian Knight MP said: “While streaming has brought significant profits to the recorded music industry, the talent behind it – performers, songwriters and composers – are losing out. Only a complete reset of streaming that enshrines in law their rights to a fair share of the earnings will do.”
She continued, “We have real concerns about the way the market is operating, with platforms like YouTube able to gain an unfair advantage over competitors and the independent music sector struggling to compete against the dominance of the major labels. We’ve heard of witnesses being afraid to speak out in case they lose favour with record labels or streaming services. It’s time for the Government to order an investigation by the Competition and Markets Authority on the distortions and disparities we’ve uncovered.”
Key recommendations
- Government to legislate so that performers enjoy the right to equitable remuneration for streaming income
- Government to refer case to the Competition and Markets Authority to undertake full market study into the economic impact of the major music groups’ dominance
- Government should introduce robust and legally enforceable obligations to normalise licensing arrangements for UGC (User Generated Content)-hosting services, to address the market distortions and the music streaming ‘value gap’
A full list of conclusions and recommendations can be found in the 122pp report which can be freely downloaded here.
