Music Streaming: Label-led Principles Debate
Full Debate: Read Full DebateLouie French
Main Page: Louie French (Conservative - Old Bexley and Sidcup)Department Debates - View all Louie French's debates with the Department for Science, Innovation & Technology
(4 days, 2 hours ago)
Commons ChamberAnd now for something completely different. With permission, Madam Deputy Speaker, I will make a statement about the Government’s progress with industry on the remuneration of artists in the music sector.
Music is not just the food of love. It does not just set our hearts dancing and express our deepest desires. It does not just showcase the UK to the world. As part of our dynamic creative industries, which we have identified as one of the eight priority growth sectors in our industrial strategy, it is key to our economic future as well. That is why music is at the heart of our new 10-year creative industries sector plan. Our new music growth package will more than double Government funding for the industry to £10 million annually for the next three years. That will help UK artists to achieve domestic and international success, while nurturing our grassroots music scene.
We want the UK music industry to thrive, but we know that it will not unless artists receive their fair share of the rewards, especially in the new era of streaming. The stereotype of artists starving in garrets is not a model for a successful industry. Musicians deserve their fair reward, and the industry will only flourish if new generations of musicians are able to make a living, so it is with pleasure that I announce today an important milestone: UK record labels have agreed to new measures that will boost the earnings of legacy artists, songwriters and session musicians.
The UK music industry is a global powerhouse. Coldplay, Adele, Stormzy, Ed Sheeran, Dua Lipa, Raye, Bryn Terfel, Alfie Boe, Iestyn Davies—our country has been the birthplace of genre-defining talent that has shaped the soundtrack of generations, so it is no surprise that we are the third largest music market in the world, and the second largest recorded music exporter. The first music streaming service started in 2001, and streaming now accounts for a majority of music revenue. This has created a series of challenges for the UK music industry, radically transforming how audiences experience music, how musicians earn a living, how record labels treat their artists, and how artists access different markets.
The Culture, Media and Sport Committee sought to address some of these issues in an important report on music streaming in 2021. In response, the Competition and Markets Authority completed a market study into music streaming, and the Intellectual Property Office conducted research on potential copyright reforms. In spring 2024, three years after the Committee’s report, the then Government finally launched the creator remuneration working group, which is tasked with
“exploring and considering industry-led actions on remuneration from music streaming for existing and future music creators”.
The Government convened the group once before the general election, and I chaired my first meeting with it within a month of taking office. I am pleased to announce that after six meetings and a series of bilateral discussions—some of them quite difficult—this work has resulted in a set of measures from UK record labels that they estimate will deliver tens of millions of pounds of new investment to support UK artists by 2030. Central to this is a new set of principles that will be adopted by the British Phonographic Industry and the Association of Independent Music, and recommended to their UK label members.
Some independent labels are already implementing the principles, and I am delighted to say that the three major labels—Universal Music Group, Sony Music Entertainment and Warner Music Group—will adopt them and introduce bespoke packages to boost the earnings of artists, especially legacy artists who signed up before streaming came on to the scene. In order to address the specific challenges faced by smaller labels, the BPI and the AIM are encouraging them to provide targeted support that is appropriate for their size and resources.
The principles will commit labels across the UK to providing targeted support for legacy artists, songwriters and session musicians. For legacy artists, this includes disregarding unrecouped advances, bespoke support to increase streaming engagement, and much greater clarity about the process of contract renegotiation. For songwriters, the support includes the payment of per diems for the first time, with major labels Warner UK and Universal UK committing to a payment of £75 per day, in addition to expenses. Sony UK will fund a bespoke new songwriter support programme, in partnership with the Ivors Academy, to provide financial support and assistance to songwriters; these payments will not be charged as a recoupable cost from their advance. For session musicians, the support includes an increase in session fees, agreed at the end of last year, and a commitment to reviewing their income from broadcast and public performance.
The principles announced today will complement the industry code of good practice on transparency, and the industry agreement on metadata, which we published in 2024. They mark a major milestone in the Government’s work with the music industry in response to the Culture, Media and Sport Committee’s 2021 report on the economics of music streaming. Some concerns remain with regard to the deal for session musicians, which is why I will convene a further meeting with industry to discuss those issues.
We want these measures to be delivered in full, so that artists see real improvements. The Secretary of State and I want legacy artists to see their work revitalised and introduced to new audiences, and to have their unrecouped balances disregarded and their contracts renegotiated. In order to track progress and measure success, we will work closely with members of the creator remuneration working group, including the Council of Music Makers, on implementing a robust monitoring process, through which we can evaluate the extent to which the principles improve earnings, as intended. The Government will then assess the need for further intervention to ensure that this package delivers on its objective of bringing about real change for creators.
This is neither the end of the road nor the lifting of the needle on the record, but it is a pivotal point. If the principles we have discussed are truly implemented, they have the potential to improve the lives of artists across the UK. I am deeply grateful to the BPI, the major labels and the Association of Independent Music for engaging with this work. I want to recognise the dedication of the Council of Music Makers, which includes the Featured Artists Coalition, the Ivors Academy, the Music Managers Forum, the Music Producers Guild and the Musicians’ Union, for its tireless commitment to its members. Finally, my thanks go to the Culture, Media and Sport Committee and its predecessor Committees for shining a powerful light on this issue. I commend this statement to the House.
A love of music is something we all share. All of us have favourite songs that make up the soundtrack to the most meaningful moments in our lives—moments of joy and sorrow. They are songs that live forever. Our music industry is a true global success story; it has global stars like Adele, Ed Sheeran, and my favourite band, Oasis, and world-class cultural institutions such as the Royal Academy of Music and the London Symphony Orchestra.
Our music industry remains one of our greatest and strongest exports to the world. It not only showcases our talent on the world stage, but contributes £8 billion to our economy. It is truly a jewel in the crown of our thriving creative sectors. As the Minister has noted, streaming has transformed the music industry, benefiting both listeners and artists. Audiences now have access to more music than ever before, and artists can reach listeners on a scale they could only dream of in the past. However, as the Minister identifies, there is concern about whether artists receive a fair deal in this delicate ecosystem, and the Opposition share that concern. Although contracts between artists, labels and streaming platforms are private commercial agreements, I know that Members on both sides of the House agree that the success of streaming should not come at the expense of artists’ livelihoods.
In 2022, the previous Conservative Government asked the Competition and Markets Authority to conduct a study into the music and streaming services. I was encouraged to learn that the CMA found no evidence of publishing revenues being suppressed by distorted or restricted competition, and that the share of streaming revenues going to publishers and songwriters has increased from 8% in 2008 to 15% in recent years. However, concerns remain, especially around the use of artificial intelligence across the creative industries. I know that the Government have commissioned independent research on the impact on creators, performers and the wider industry of potential changes to copyright law in the areas of equitable remuneration, contract adjustment and rights reversion. Furthermore, the Centre for Data Ethics and Innovation has completed research on the playlisting algorithms used by streaming services.
I can assure the Minister that Members on both sides of the House want a better deal for artists, songwriters and performers. That is why we broadly welcome the Government taking an industry-led approach to this issue. If only they did that elsewhere! I must, however, press the Minister to provide assurances to the House. First, what consequences will there be for labels that fail to comply with the new principles, and what percentage of artists does he believe will benefit from today’s announcement? Secondly, what message does he have for creatives and publishers who remain deeply concerned that they are not being fairly rewarded for their hard work? Lastly, will the Government commit to reviewing these reforms within 18 months, to ensure that they are working for the industry?