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

Liverpudlian DJ Lee Butler was a cocaine addict until four years ago when he came across the Addictive Voice Recognition Technique.

NEWS

A report by PWC predicts the pre-pandemic levels of revenue in the industry to return to this by 2025

NEW RELEASE

Trio of the moment Oden & Fatzo land on London imprint Pitch Records, hot off the back of releases on Swerve, Hedzup and Moscow...

FEATURES

We look at five ways to aid the recovery of the hospitality and nightlife sector following a tough 16+ months.

NEWS

57% of people turned to music to help them process the effects of the pandemic, a study has revealed.

NEWS

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’.

NEWS

Nightclubs and other large venues in England will be required to enforce a vaccine passport entry policy from the end of September

NEWS

Ibiza nightlife organisational body, Ocio de Ibiza, has proposed a ban on DJs that play illegal raves and parties, citing the issue as an...

You May Also Like

FEATURES

It is a conversation that has stood the test of musical time. Today, I look at one of the most argued issues within electronic...

EVENTS

With the scheduled lockdown restrictions removed, we take a look at some high-profile venue openings, and parties, starting at 00:01 on the 19th of...

FEATURES

We spoke to the French duo about their latest record - on their label, Legend - as well as working with other artists and...

FEATURES

Some of the factors that determine the DJ lineups and what can be done to avoid compromising musical integrity.

Advertisement