Calls for Industry Review Regarding Musicians’ Concerns About ‘Meager Returns’ from Streaming System | Politics News



The competition watchdog has been asked to examine the structure of the UK music industry amid concerns that musicians are getting “meager returns” from the current streaming system.

The Digital, Culture, Media and Sports Committee (DCMS) report on the streaming economy previously warned that “pitiful returns” of the current system have an impact on “the entire creative ecosystemâ€.

He said some successful and critically acclaimed musicians are seeing “meager returns” on their work and that performers not featured on songs are “totally frozen”.

The report also raised “deep concerns” about the position of major music companies in the market.

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Artists get ‘pitiful returns’ from streaming

The majors Sony Music, Warner Music and Universal Music appeared before MPs during the sessions, while tech giants Spotify, Amazon, Apple and YouTube also testified.

Responding to the committee’s recommendations, the government appealed to the Competition and Markets Authority (CMA).

The committee also recommended fair compensation legislation to improve the incomes of performers, and the government response said, “This is a complex area and the government takes the concerns of music creators seriously.

“This is why we are launching work to better understand the issues of equity in the remuneration of creators and performers.

“As part of this work, the government will assess different models, such as equitable compensation and the artist growth model, to explore how they are likely to affect different parts of the music industry and how they might be. achieved, including through potential legislation. “

Robert Plant, Rebecca Ferguson, Lily Allen, Noel Gallagher.  Photos: PA / AP
Robert Plant, Rebecca Ferguson, Lily Allen, Noel Gallagher. Photos: PA / AP

According to the Broken Record campaign, under the current system, artists receive around 16% of total stream revenue, while record companies receive around 41% and streaming services around 29%.

The investigation, which was launched following a thorough examination prompted by the COVID-19 pandemic, received more than 300 pieces of evidence, including from Chic Nile Rodgers star, Radiohead guitarist Ed O ‘ Brien, Elbow frontman Guy Garvey and singer-songwriter Nadine Shah.

Julian Knight MP, DCMS Committee Chairman, said: “Our investigation of music streaming revealed fundamental problems within the structure of the music industry itself.

“Our report exposed the unassailable position of these companies. We have provided evidence of our deep concern that their dominance distorts the market.

“Within days, we expect the government’s own research to be released on the pitiful incomes of creators in the digital age and hope it will corroborate what artists and musicians have told us.”

A spokesperson for the British Phonographic Industry (BPI), the independent British association of major record labels, said royalty rates have “increased under streaming – to around 25% from around 18% under the CD era – an increase of 40%, contributing to artists’ income which is growing faster than record label income and to investments in the launch of new acts which are constantly increasing “.

The spokesperson added: “Competition in the UK music industry is fierce.

“As the government is observing, streaming has provided more avenues of market access for artists and creators. We note the government’s response that the CMA is an independent regulator and any decision to conduct a study market is theirs. “


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