Economics of music streaming

Culture, Media and Sport Committee Closed Inquiry
Opened: 15 Oct 2020 Closed: 10 Nov 2021 Parliament page
MPs will examine what economic impact music streaming is having on artists, record labels and the sustainability of the wider music industry. With streaming currently accounting for more than half of the global music industry’s revenue, this inquiry will look at the business models operated by platforms such as Spotify, … Read more
21 Recommendations
4 Conclusions
1 Report
7 Oral sessions
5 Letters
7 Events
Activity timeline 14 events
14 Jun
2022
Correspondence
22 Sep
2021
Report published
22 Sep
2021
Correspondence
22 Sep
2021
Correspondence
15 Jul
2021
Report published
22 Mar
2021
Oral evidence
23 Feb
2021
Oral evidence
10 Feb
2021
Oral evidence
4 Feb
2021
Oral evidence
19 Jan
2021
Oral evidence
12 Jan
2021
Correspondence
8 Dec
2020
Oral evidence
Oral evidence sessions 7 sessions
22 Mar 2021
View on parliament.uk
Amanda Solloway MP · Department for Business, Energy and Industrial Strategy Caroline Dinenage MP · Department for Digital, Culture, Media and Sport Robert Specterman-Green · Department for Culture, Media and Sport Tim Moss · Intellectual Property Office
23 Feb 2021
View on parliament.uk
Elena Segal · Apple Inc Horacio Gutierrez · Spotify Paul Firth · Amazon
10 Feb 2021
View on parliament.uk
Geoff Taylor · BPI Graham Davies · Ivors Academy Horace Trubridge · Musicians’ Union Katherine Oyama · YouTube Raoul Chatterjee · Soundcloud Roberto Neri · Music Publishers Association Steve Bené · Twitch
4 Feb 2021
View on parliament.uk
Paul Pacifico · Association of Independent Music Rupert Skellett · Beggars Group Yvette Griffith · Jazz Re:freshed
19 Jan 2021
View on parliament.uk
Andrea Martin · PRS for Music David Joseph · Universal Music UK & Ireland Jason Iley · Sony Music UK & Ireland Peter Leathem · Phonographic Performance Ltd Tony Harlow · Warner Music UK
8 Dec 2020
View on parliament.uk
Fiona Bevan José Luis Sevillano · Artistas Intérpretes o Ejecutantes, Entidad de Gestión de Derechos de Propiedad Intelectual (AIE) Kwame Kwaten · Music Managers Forum Maria Forte · Maria Forte Music Services Ltd Nile Rodgers Soweto Kinch
24 Nov 2020
View on parliament.uk
Colin Young Ed O'Brien Guy Garvey Nadine Shah Tom Frederikse Tom Gray · The Ivors Academy
Title HC No. Published Items Response
Second Report - Economics of music streaming HC 50 15 Jul 2021 25 Responded
Recommendations & Conclusions
9 results
Clear
3 Conclusion Deferred
Second Report - Economics of music…
The pitiful returns from music streaming impact the entire creative ecosystem.
The pitiful returns from music streaming impact the entire creative ecosystem. Successful, critically acclaimed professional performers are seeing meagre returns from the dominant mode of music consumption. Non-featured performers are frozen out altogether, impacting what should be a viable career … Read more
Government Response
The Government welcomes the report and acknowledges the impact of poor remuneration on creators. It states that more targeted research and evidence are needed to fully understand the problems and potential solutions before it can decide on action.
Department for Culture, Media and Sport
View details
4 Recommendation Deferred
Second Report - Economics of music…
The major music companies and independent record labels have consistently asserted that music streaming is...
The major music companies and independent record labels have consistently asserted that music streaming is straightforwardly ‘making available’, and therefore performers should be remunerated as though it was a sale. However, this classification does not consider the complexities of streaming … Read more
Government Response
The Government notes the complexity and potential negative impacts of equitable remuneration, stating it will launch work to better understand issues of fairness in creator and performer remuneration and assess different models before deciding on action.
Department for Culture, Media and Sport
View details
5 Recommendation Deferred
Second Report - Economics of music…
The right to equitable remuneration is a simple yet effective solution to the problems caused...
The right to equitable remuneration is a simple yet effective solution to the problems caused by poor remuneration from music streaming. It is a right that is already established within UK law and has been applied to streaming elsewhere in … Read more
Government Response
The Government notes the complexity and potential negative impacts of equitable remuneration, stating it will launch work to better understand issues of fairness in creator and performer remuneration and assess different models before deciding on action.
Department for Culture, Media and Sport
View details
6 Recommendation Deferred
Second Report - Economics of music…
We recommend that the Government legislate so that performers enjoy the right to equitable remuneration...
We recommend that the Government legislate so that performers enjoy the right to equitable remuneration for streaming income. Amending the Copyright, Design and Patents Act 1988 so that the making available right does not preclude the right to equitable remuneration, … Read more
Government Response
The government defers action on legislating for equitable remuneration, stating it is a complex area requiring further work to better understand impacts and assess different models, with an update expected in spring 2022.
Department for Culture, Media and Sport
View details
10 Recommendation Deferred
Second Report - Economics of music…
There is no doubt that the major music groups currently dominate the music industry, both...
There is no doubt that the major music groups currently dominate the music industry, both in terms of overall market share in recording and (to a lesser extent) in publishing, but also through vertical integration, their acquisition of competing services … Read more
Government Response
The government acknowledges concerns about market dominance but states the CMA is an independent regulator and it is for them to decide on a market study, though they have written to the CMA on the recommendation, without committing to making the referral itself.
Department for Culture, Media and Sport
View details
12 Recommendation Deferred
Second Report - Economics of music…
We recommend that the Government concurrently expand creator rights by introducing a right to recapture...
We recommend that the Government concurrently expand creator rights by introducing a right to recapture works and a right to contract adjustment where an artist’s royalties are disproportionately low compared to the success of their music into the Copyright, Designs … Read more
Government Response
The Government will commission research into the impacts of introducing rights to recapture works and contract adjustment, which will inform whether and how to implement them, with an update expected in spring 2022.
Department for Culture, Media and Sport
View details
17 Recommendation Deferred
Second Report - Economics of music…
Music curators play an important role in the discovery and consumption of digital music and...
Music curators play an important role in the discovery and consumption of digital music and are influential in how creators are remunerated. It is, therefore, unsurprising that music creators are putting more resources into catching the eye of these curators. … Read more
Government Response
The Government agrees with the recommendation in principle but notes the complexities involved and states it will gather further evidence and carefully consider the case for intervention before proceeding with a code of practice.
Department for Culture, Media and Sport
View details
22 Recommendation Deferred
Second Report - Economics of music…
We note that the CMA has developed a pro-competition framework for tech companies with ‘strategic...
We note that the CMA has developed a pro-competition framework for tech companies with ‘strategic market status’ that dominate digital markets. The CMA should consider exploring designating YouTube’s streaming services as having strategic market status to encourage competition with its … Read more
Government Response
The CMA notes the recommendation to designate YouTube with Strategic Market Status, but states that the relevant pro-competition regime is still under consultation and the independent Digital Markets Unit will determine which assessments to undertake in the future.
Department for Culture, Media and Sport
View details
24 Recommendation Deferred
Second Report - Economics of music…
The debate between the predominant pro-rata payment model and alternative methodologies such as user-centric has...
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 … Read more
Government Response
The government notes concerns about potential market dominance and stifled innovation, but defers the decision to the independent CMA on whether to undertake a market study or specific investigation, stating it has written to the CMA regarding the recommendation.
Department for Culture, Media and Sport
View details
Government Response AI assessment · 25 of 21 classified
Accepted 3
Accepted in Part 4
Acknowledged 5
Deferred 9
Not Addressed 1
Rejected 3
Total 21 recs + 4 conclusions
Correspondence 5 letters
14 Jun 2022 To committee Letter from Julia Lopez MP, Minister for Media, Data and Digital Infrastructure, and George Freeman MP, Minister for Science, Research and Innovation, relating to music streaming, 18 May 2022
Parliament page
22 Sep 2021 To committee Letter from the Chair to Andrea Coscelli CBE, Chief Executive, CMA, relating to music streaming, 22 September 2021
Parliament page
22 Sep 2021 Correspondence between the Government and the Competition and Markets Authority, relating to music streaming, 15-20 September 2021
Parliament page
12 Jan 2021 Written evidence: BPI (EMS208)
Parliament page
24 Nov 2020 Background paper: Colin Young music streaming slides
Parliament page