Copyright (Rights and Remuneration of Musicians, Etc.) Bill

Ben Spencer Excerpts

2nd reading
Friday 3rd December 2021 Commons Chamber

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

On the point about markets, I was reflecting on the comments my right hon. Friend made about this being a statutory measure to allow a review of contracts. Is there a danger that that could create a market distortion that would actually diminish the number of new contracts being set up, because the music industry would see, in 20 years’ time, artists who are successful going to a different provider?

[Mr Whittingdale]

My hon. Friend is entirely right, and the labels are very anxious about that. When they reach agreement with an artist at the moment, they have, written in a legally binding contract, a certainty that would be removed if we suddenly gave the right to one party to say that, after a certain period, they could essentially just tear up the contract. It would create uncertainty, which is bound to be a disincentive to signing new artists, so I think my hon. Friend is absolutely right.

Where I think there is more work to be done, and I hope the CMA market study may bring this out, is in an area that is not covered in the hon. Gentleman’s Bill, which is the power of the digital service providers. They are very dominant, and the industry has been complaining for a long time about what it terms the value gap, which is the amount of money retained by the platforms and not given over to the industry. I have to say that YouTube is a particular offender in this. It takes advantage of this thing called safe harbour under the Digital Millennium Copyright Act and as a result gives over to the rights holders only a fraction of the revenue it receives, particularly compared with Spotify, which has a better record in this area.