Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Digital, Culture, Media and Sport, what recent steps her Department has taken to help ensure that creators and performers receive a fair return from the income made from streaming music.

A key priority for this Government is ensuring the music streaming market functions well and that creators and performers are properly remunerated. In response to the DCMS Select Committee’s inquiry into the Economics of Music Streaming, the Government launched a comprehensive programme of work focusing on the key issues identified.

This includes the establishment of expert working groups, chaired by the Intellectual Property Office, to develop industry-led solutions on metadata and transparency. These aim to bring improvements for creators and performers, including quicker and more accurate payments for songwriters and enhanced confidence in creators’ dealings with labels and publishers.

The Government encouraged the Competition and Market Authority (CMA) to conduct a market study into music and streaming services, which concluded in November 2022. The CMA found no suggestion that publishing revenues are being suppressed by distorted or restricted competition and that the overall share of streaming revenues enjoyed by publishers and songwriters has increased from 8% in 2008 to 15% in 2021.

We have also commissioned independent research into the impacts on creators, performers, and the wider industry of potential changes to copyright law in the areas of equitable remuneration, contract adjustment, and rights reversion. And the Centre for Data Ethics and Innovation has completed research into playlisting algorithms used by streaming services, which will be published shortly.

The Government also notes action taken by industry to improve remuneration for creators. The major record labels have committed to disregarding unrecouped advances in older contracts, meaning many artists are being paid from streaming for the first time. Many independent labels have gone further, leading the way by setting minimum digital royalty rates across new and existing contracts.

The work of the expert working groups is advanced, as is the research. Based on this, and the action taken by industry, the Government will be taking decisions on this work in the coming months.