Second Report - Economics of music streaming

Select Committee
Culture, Media and Sport Committee HC 50 15 July 2021
Report Status Government responded
Conclusions & Recommendations 25 items (21 recs)
Source View on Parliament website
Government Response (AI assessment · 25 of 25 classified)
Accepted 3
Accepted in Part 4
Acknowledged 5
Deferred 9
Not Addressed 1
Rejected 3
Government response
Second Special Report - Economics of music streaming: Government and Competition and Markets Authority Responses to Committee’s Second Report · published 22 Sep 2021
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Recommendations & Conclusions

9 results
3 Conclusion Deferred
Para 58
The pitiful returns from music streaming impact the entire creative ecosystem.
Conclusion
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 Summary
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
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4 Recommendation Deferred
Para 69
The major music companies and independent record labels have consistently asserted that music streaming is...
Recommendation
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 Summary
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
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5 Recommendation Deferred
The right to equitable remuneration is a simple yet effective solution to the problems caused...
Recommendation
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 Summary
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
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6 Recommendation Deferred
Para 77
We recommend that the Government legislate so that performers enjoy the right to equitable remuneration...
Recommendation
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 Summary
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
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10 Recommendation Deferred
Para 111
There is no doubt that the major music groups currently dominate the music industry, both...
Recommendation
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 Summary
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
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12 Recommendation Deferred
Para 123
We recommend that the Government concurrently expand creator rights by introducing a right to recapture...
Recommendation
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 Summary
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
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17 Recommendation Deferred
Para 151
Music curators play an important role in the discovery and consumption of digital music and...
Recommendation
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 Summary
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
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22 Recommendation Deferred
Para 172
We note that the CMA has developed a pro-competition framework for tech companies with ‘strategic...
Recommendation
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 Summary
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
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24 Recommendation Deferred
Para 183
The debate between the predominant pro-rata payment model and alternative methodologies such as user-centric has...
Recommendation
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 Summary
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
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