U.K. TO EXPLORE ISSUES SURROUNDING FAIR PAY IN STREAMING (UPDATE)

The U.K. will establish an industry working group to explore issues and develop actions surrounding fair pay for creators in music streaming.

The Digital, Culture, Media and Sport Committee recommended the creation of the group after calling for a “complete reset” of the recorded music industry in its Economics of Music Streaming report, sparking much debate in 2021.

Caroline Dinenage MP, chair of the CMS Committee, called the creation of a working group “a welcome step toward addressing the frustrations of musicians and songwriters whose pay falls far short of a fair level given their central role in the success of the music streaming industry.”

“The government must now make sure the group is more than a talking shop and leads to concrete change so the talented creators and performers we have in this country are properly rewarded for their creativity,” said Dinenage. “The Committee will be keeping a close eye on progress and also looking more widely at artist and creator remuneration to ensure that everyone who works in our creative industries can share in their successes."

British record label trade body the BPI is not pleased with the news. In a statement, interim CEO Sophie Jones said the org is concerned that “the environment being fostered in the U.K. will disincentivize investment in our creative ecosystem at a time when labels are fighting hard to grow exports and protect the rights of artists in the era of AI.”

This new effort, she says, “seems at odds with the government’s ambition to grow the U.K.’s world-leading creative industries by an extra £50b by 2030.” It also follows multiple inquiries and investigations, including a study by the Competition and Markets Authority, which found competition is working effectively and delivering good and improving outcomes for consumers and creators across the sector.

“Throughout that process the BPI and its members engaged positively and constructively, resulting in a raft of initiatives to improve transparency and the flow of royalty payments to artists,” Jones concluded. “Numerous studies have demonstrated that streaming has benefited consumers and artists alike, with record labels paying more to artists than ever before.”

The U.K. Council of Music Makers, which has been lobbying for a working group to be established, is naturally more welcoming of the news. "Music-maker remuneration is the single-biggest issue in streaming," it ventured in a statement. "We greatly appreciate the government's positive response to this request and look forward to now getting to work.”