A new industry group has been set up to tackle music streaming pay issues
Since the advent of streaming, there have been many concerns about fair pay for artists. An industry working group has been set up to tackle these issues, with Sir John Whittingdale detailing the plan in a letter to the Commons Culture, Media and Sport Committee.
Wittingdale explained that the group will be “composed of representatives and experts from across the music sector, to explore and develop industry-led actions that support fair remuneration for existing and future music creators as part of a successful and globally competitive music industry.”
Dame Caroline Dineage, who serves as the chair of the Culture, Media and Sport Committee, stated, “The creation of a working group we have been calling for is a welcome step towards addressing the frustrations of musicians and songwriters whose pay falls far short of a fair level given their central role in the success of the music streaming industry.”
“The Government must now make sure the group is more than a talking shop and leads to concrete change so the talented creators and performers we have in this country are properly rewarded for their creativity.”
Wittingdale continued, “Royalty rates in new recording contracts have long trended upwards, with average rates in new contracts now around 25% – while alternative deal types offer artists more options than ever to reach audiences and monetise their works, often with higher royalty rates than traditional record deals.”
“Additionally, new contracts are increasingly moving away from life-of-copyright durations, in many cases allowing creators to regain control of their music after a shorter period. And these improvements come alongside increasing numbers of artists reaching substantial numbers of streams and being able to make a living from recorded music.”
However, Sophie Jones from the British Phonographic Industry expressed concern over the new plans that “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.”
She added, “This new effort seems at odds with the Government’s ambition to grow the UK’s world leading creative industries by an extra £50 billion by 2030.”
“Numerous studies have demonstrated that streaming has benefited consumers and artists alike, with record labels paying more to artists than ever before,” says Jones.
Never Miss A Beat
The Far Out Music Newsletter
All the latest music news from the independent voice of culture.
Straight to your inbox.