Artistic Remuneration for Online Content

Gregory Campbell Excerpts

Wednesday 6th July 2016 Westminster Hall

[Kerry McCarthy (Bristol East) (Lab)]

It is, as ever, a pleasure to serve under your chairmanship, Mr Gray. I congratulate the hon. Member for Selby and Ainsty (Nigel Adams) on securing the debate and on all the work that he has been doing with the all-party parliamentary group on music.

This issue is of real and growing concern to musicians and has been for some time. As an MP for Bristol, which a fairly recent survey showed had more musicians than anywhere else in the country, I thought it was important to speak in this debate, and I am pleased that my constituency neighbour and hon. Friend the Member for Bristol West (Thangam Debbonaire) is also here to speak. She will be joining me in supporting Bristol’s bid to be capital of culture in a few years’ time, and obviously the musical contribution that Bristol can make is a very important part of that.

I associate myself with the views expressed by the hon. Member for Selby and Ainsty on the need for further action to address piracy, and especially on how search engines facilitate piracy and the need to clarify the legal ambiguity of safe harbour provisions, which are allowing the development of parasitic digital platforms that leech value from this country’s creative industries. I will be interested to hear what the Minister has to say and whether he plans to introduce clauses into the Digital Economy Bill to address that loophole, but today I want to speak on behalf of artists and about the need for a more equitable distribution of digital royalties between them and their record companies.

For many years, artists have spoken out about the considerable difficulties that they face in trying to make a living from the royalties that they receive from streaming. Taylor Swift pulled her last album from Spotify to make that point. Clearly, Taylor Swift will not be short of money whether or not she sells material through Spotify, but it was important that she took a stand on behalf of the many musicians who rely on royalties to make a living. If they do not get sufficient revenues from digital streaming, they literally cannot afford to be professional musicians.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Does the hon. Lady agree that although an artist of the standing of Taylor Swift has considerable financial and musical clout across the globe, that is not shared by the hundreds and perhaps thousands of musicians who have not yet broken through and perhaps will never reach anything like the standing that she has? What we are trying to do today is represent those artists, as opposed to one who has made a breakthrough and can take a stand. We are representing the many who cannot do that.

[Kerry McCarthy]

I totally agree. A few years ago I went into BPI’s offices and the staff there showed me the impact of illegal downloading on record sales, using Adele as an example. It was quite startling to see, by the second, how many hundreds if not thousands of illegal downloads there were. I said to them, “Yes, that does make a certain point, but I want to see what impact it has on the income of a struggling indie band that is on the verge of breaking through.” It would be easy for people to say, “Well, Adele is selling millions.” Yes, she is clearly very wealthy and perhaps can afford for people to access her content for free, but it is the principle, is it not? That principle should apply across the board. I have always said that it is up to artists whether they want to make their content free. If they see that making their content free online is a good move for their career, that is their choice, but it is equally their choice to be paid if they want to be paid, and people should not download illegally.

Going back to the legal streaming services, if we are to secure the future sustainability of the sector and encourage vibrant new acts to come forward, it is vital that artists can earn a decent living in the digital environment. The problem will only become more acute in the years ahead, as digital music revenues will continue to outstrip those from physical formats such as CDs and vinyl. There is a bit of a vinyl revival, but that will always be a niche area. It is illustrative that when I was talking to my teenage and early twenties nephews and nieces the other day, I found that they had never bought a CD. I think it is on the verge of becoming a redundant format.

There is an issue about how Spotify calculates payments to rights owners. It is too complex to go into detail about here, but it means that the money that we as individual consumers pay for streaming does not directly go to the bands and artists we are listening to the most, and it penalises bands with strong fan bases.

The primary cause of the problem that artists face with streaming royalties, though, lies in the contract that they have with their record label. Those contracts continue to pay artists royalties for streaming as though the stream were a physical sale of a product. They are continuing with a royalty rate from the pre-digital era, so things such as the manufacture, storage and distribution of a physical product such as a CD or vinyl album are factored into the contract. That simply cannot be justified when there is no physical product on the market.