Connect with us

Hi, what are you looking for?

NEWS

MPs want a “complete reset” on music streaming

The UK Government’s report investigating the ‘Economic of Streaming’ launched in October 2020 has concluded that the current streaming model needs a ‘total reset’.

The outcome of a report which investigated the Economy of Streaming by the government has called for UK artists to earn a fairer share of royalties. This would involve a “complete reset” of the current music streaming system.

With streaming surpassing all other mediums of music consumption, UK record labels make £736.5 million from streaming, with artists seeing a measly 16% of this figure. 

A BBC report details Spotify as paying between £0.002 and £0.0038 per stream; Apple Music pays roughly £0.0059. This totals to around £300 per 100,000 streams an artist would actually receive. 

Youtube was also heavily criticised in the report, as evidence detailed that:

“accounts for 51% of music streaming per year but contributed 7% of all revenue.” 

The recommendations from the inquiry included:

  • The introduction of measures allowing music creators to recapture the rights to their work from labels after a period of time;
  • Give artists the right to adjust contracts if their work is successful beyond the remuneration they receive;
  • The government should introduce legally enforceable obligations to normalise licensing arrangements for user-generated content-hosting services such as YouTube;
  • The government should also require publishers and collecting societies to publish royalty chain information to provide transparency to artists about how much money is flowing through the system;
  • Competition and Markets Authority (CMA) to launch a study into the “economic impact of the majors’ dominance”.

The rest of the report can be read here. The overall message of the inquiry is a strongly negative outcome for the streaming industry and its existing structure. Although these recommendations are made up from a government inquiry, they are yet to be legally binding; the government will now discuss the recommendations from the inquiry in more detail before finalising any binding terms of change.

MP Julian Knight went on to say:

”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.”

This clearly signals a dramatic change in how the streaming industry will work moving forwards, with MPs seemingly unanimous on their call for giving artists a more fair share of their cut with a 50% split.

Advertisement
Advertisement

Latest

NEWS

Nightclub owners pressed their case with the Balearic tourist minister.

MUSIC

Hot Creations Head honcho Jamie Jones returns to the label with a heavy-hitting trio of club cuts.

NEWS

DJs share their favourite recipes in a new charity cookbook created by DJ and producer Eira Haul.

NEWS

Amnesty International published a report entitled “Redon: “Freeparty” of repression” detailing several human rights violations at The Teknival rave in Redon, Brittany, in June...

EVENTS

An epic 39-hour marathon as fabric celebrate their 22nd birthday with Craig Richards, Ricardo Villalobos, Seth Troxler & Sonja Moonear + more.

NEWS

He was charged with five counts of assault and given a 16-week suspended sentence.

NEWS

Partygoers are asking for proof the money is being transferred to United Migrants the association that takes care of the refugees.

NEWS

A recent survey carried out by MRC Data has shown that Gen Z (the newest generation, generally born between 1997 and 2012) are buying...

You May Also Like

NEWS

The new dating app is aimed specifically at the raving community.

NEWS

The 54-year-old man was taken to East Limburg Hospital on Friday but sadly passed away later that evening.

FEATURES

Whistling in the DJ's ears at every drop is a frowned upon action.

NEWS

Most restaurants and bars can open to maximum capacity, and all events can resume under new regulations.

Advertisement