Economics of music streaming: Government accepts CMS Committee recommendation on industry remuneration working group

The BPI responded:
“We are concerned the environment being fostered in the UK will disincentivise investment in our creative ecosystem at a time when labels are fighting hard to grow exports and protect the rights of artists in the era of AI. Furthermore, this new effort seems at odds with the Government’s ambition to grow the UK's world leading creative industries by an extra £50bn by 2030.  Over the past three years our sector has been subjected to multiple inquiries and investigations, culminating in a CMA market study that found competition is working effectively and delivering good and improving outcomes for consumers and creators across the sector. Throughout that process the BPI and its members engaged positively and constructively, resulting in a raft of initiatives to improve transparency and the flow of royalty payments to artists. Numerous studies have demonstrated that streaming has benefited consumers and artists alike, with record labels paying more to artists than ever before.” 

Sophie Jones, BPI Interim CEO

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UK Council of Music Makers statement: 

"Music-maker remuneration is the single biggest issue in streaming. Which is why we have been calling for a working group to be convened to allow the music community to come together to discuss the different ways that we can address these challenges, including the copyright reforms that have been proposed and other possible solutions".

"We greatly appreciate the government's positive response to this request and look forward to now getting to work. We will be publishing a new white paper later this week setting out the different elements of the music-maker remuneration debate, building on the five fundamental objectives for streaming reform that we outlined earlier this year".

"We'd also like to again thank the Culture, Media & Sport Select Committee, whose streaming inquiry and ongoing diligence has ensured that various issues faced by music-makers are now being addressed. The working groups on data and transparency, which have been expertly led by the Intellectual Property Office, are set to result in a number of positive changes which, although small steps, are nevertheless important steps towards delivering a transparent, dynamic and equitable streaming business. We hope similar things can now be achieved around remuneration". 

Back in March 2023, the CMM united around 5 industry-wide changes that would allow the music industry to embrace a new 'artist-and-creator-centric' future.