STREAMING BUSINESS LIBRARY
DCMS Economics Of Streaming Inquiry
Tracking the DCMS select committee’s music streaming inquiry and the projects it instigated
In October 2020 the Digital Culture Media & Sport Select Committee in the UK Parliament announced an inquiry into the economics of music streaming.
The committee completed its inquiry and published a report in July 2021 calling for a “complete reset” of the streaming business, having identified various issues with the current business model for artists and songwriters.
In response to that, the UK government’s Intellectual Property Office instigated three streams of work seeking music industry-led solutions around remuneration, transparency and data. Meanwhile the Competition & Markets Authority undertook a study of the music streaming market.
The IPO had already commissioned a report on music creator earnings in the streaming era which also informed this debate, while the government’s Department For Digital Culture Media & Sport concurrently commissioned a study into the impact of streaming service algorithms.
Committee member Kevin Brennan MP also proposed a private members bill in 2021 that set out how a number of the copyright reforms proposed in the committee’s report might be achieved. The bill was not successful but sparked further debate about the economics of streaming within Parliament.
You can follow CMU’s editorial coverage of the inqury, the subsequent IPO and CMA work, and other developments within the streaming business that are relevant to the ongoing debates, here on this CMU Timeline.
Also included are relevant resources within the CMU Library, including guides produced by CMU Insights as part of its work for the UK’s Music Managers Forum and its ‘Dissecting The Digital Dollar’ project.
CMU itself has been involved in the inqury and subsquent work via our CMU Insights consultancy unit. We made a submission to the inquiry and CMU’s Chris Cooke spoke at a select committee hearing in November 2022.
He is also a member of the Music Industry Contact Group and Contract Transparency Working Group that were convened by the IPO, and has consulted for the MMF and wider Council Of Music Makers as they have interacted with the various projects that were instigated following the inquiry.
Here are various publications and statements issued by the DCMS Select Committee, relevant departments of government and the Competition & Markets Authority in relation to the Economics Of Music Streaming inquiry.
Economics Of Music Streaming page on the DCMS committee website
Economics Of Music Streaming page on the UK government website
The DCMS committee’s main report (Jul 2021)
The government’s response to the DCMS committee’s report (Sep 2021)
The IPO’s report on music creator earnings (Sep 2021)
Kevin Brennan’s private members bill (Nov 2021)
A letter about the government’s economics of streaming work (May 2022)
The CMA’s market study report (Nov 2022)
A letter about the IPO convened working groups (Nov 2022)
The DCMS committee’s follow up report (Jan 2023)
The IPO’s report on rights reversion and contract adjustment (Feb 2023)
The DMCS report on the impact of streaming algorithms (Feb 2023)
A letter about the convening of a remuneration working group (May 2023)
UK industry agreement on music streaming metadata (May 2023)
The Music Managers Forum in the UK and CMU Insights have been investigating and debating the economics of music streaming through the ‘Dissecting The Digital Dollar’ project for the last eight years. You can access some key outputs from that work here…
Dissecting The Digital Dollar: Executive Summary
Dissecting The Digital Dollar: The Book
Digital Dollar Guide: Deals Guide
Digital Dollar Guide: Transparency Guide
Digital Dollar Guide: Song Royalties Guide
Digital Dollar Guide: Song Royalties Manifesto
Other useful guides from CMU:DIY and CMU Insights…
The CMU:DIY Guide Music Streaming Explained explains the deals streaming services do with the music industry and how streaming royalties are calculated each month.
The CMU:DIY Guide The Streaming Debate Explained reviews the big and ongoing debate around the economics of streaming, outlining issues that have been raised and solutions that have been proposed.
The Performer Payments From Streams guide from CMU Insights and the PayPerformers campaign explains which performers are paid when their work is streamed and how those payments are calculated.
Relevant special editions of Setlist, the music business podcast from CMU…
The ten things people get wrong about streaming – Part One
The ten things people get wrong about streaming – Part Two
The things people still get wrong about streaming – dissecting the Economics Of Streaming report
We reviewed and dissected the written submissions made to the DCMS committee’s inquiry, breaking everything down into the ten key topics and issues covered. You can check our overview of those topics here. Below we review in more detail what key submissions said about each of those issues.
#01: The big picture view
• Submission: CMU
#02: The artist / label split
• Submission: BPI
• Submission: IFPI
• Submission: MMF/FAC
• Submission: BMG
#03: The recording / song split
• Submission: IMRO
• Submission: IMPF
• Submission: BMG
• Submission: The Ivors Academy
• Submission: Hipgnosis Songs Fund
#04: Equitable remuneration
• Submission: #brokenrecord
• Submission: MU
• Submission: MMF/FAC
#05: User-centric royalty distribution
• Submission: Hipgnosis Songs Fund
• Submission: BMG
• Submission: MU
• Submission: Will Page
• Submission: AIM
• Submission: AIM supplementary
• Submission: ERA
#06: Transparency
• Submission: Ivors Academy
• Submission: ISM
• Submission: MU
• Submission: MMF/FAC
#07: Music rights data
• Submission: Ivors Academy
• Submission: YouTube
#08: Royalty chains
• Submission: MMF/FAC
#09: Safe harbour
• Submission: BPI
• Submission: IFPI
• Submission: AIM
• Submission: IMPF
• Submission: Ivors Academy
• Submission: YouTube
• Submission: Council Of Music Makers
#10: Curation and algorithms
• Submission: Beggars Group
• Submission: state51
• Submission: NMC
• Submission: BMG
• Submission: Ivors Academy
Extra: More from the majors
• Submission: Universal Music
• Submission: Sony Music
• Submission: Warner Music
Updates on the inquiry and its hearings from CMU – sign up to the CMU Daily and Setlist podcast for all the latest news.
May 2020
• Musicians’ Union and Ivors Academy call for government intervention to “fix streaming”
October 2020
• Parliament’s culture select committee to investigate the economics of music streaming
• Setlist: Parliament probes the economics of streaming
• US musicians group calls for cent-per-stream payouts in Justice At Spotify campaign
November 2020
• Performer ER in the spotlight at first parliamentary hearing on the economics of music streaming
• Setlist: Artists tell MPs streaming is “threatening the future of music”
December 2020
• Performer ER certain to be debated once again at second parliamentary hearing on streaming
• Setlist: Review of the music business year 2021
January 2021
• Labels expected to argue against ER on streams at tomorrow’s select committee hearing
• BPI cautions against radically changing a streaming model that is “working well for so many”
• Artist and songwriter groups respond to major label statements at select committee streaming inquiry
February 2021
• Indie labels in the spotlight as Parliament’s economics of streaming inquiry continues
• MU and Ivors say they are optimistic of “fairer deal” as Parliament’s streaming inquiry proceeds
• Safe harbour in the spotlight as tech platforms questioned as part of Parliament’s streaming inquiry
• Spotify, Apple and Amazon face MPs in Parliament’s ongoing inquiry into streaming
March 2021
• SoundCloud announces shift to user-centric royalty distribution for its 100,000 independent creators
• Setlist: The music business year so far
• Spotify formally enters the economics of streaming debate with new Loud & Clear website
April 2021
• Setlist: Artists call on Boris Johnson to fix streaming
June 2021
• The Rolling Stones and Van Morrison among 76 new artists joining call for ER on streams
• Setlist: Could this bold new law finally fix streaming?
July 2021
• AIM publishes insights on the artist growth model for streaming royalty distribution
• Setlist: Let’s fix streaming by taxing the superstars
• European performers back the UK artists calling for equitable remuneration on streams
• DCMS Committee Economics Of Streaming Report: Lots of quotes
• BMG welcomes Parliament’s streaming report: “The music industry desperately needs to modernise”
August 2021
• Four Tet and Domino in court over sales v licence digital royalties dispute
• CMU publishes new guide on performer payments from streaming
September 2021
• PayPerformers says the “contractual system” for sharing out streaming income isn’t working
• FAC and MMF publish white paper on Parliament’s big streaming report
• Government responds to Parliament’s economics of streaming report
• Responses to the UK government’s response to Parliament’s Economics Of Streaming Report
• Merck Mercuriadis responds to NMPA chief and UK government on impact of majors on song royalties
• Intellectual Property Office publishes report on music-makers’ earnings
• Setlist: The government responds to Parliament’s streaming report
October 2021
• UK competition regulator announces market study into music streaming
• Artists and songwriter groups welcome Competition & Market Authority’s streaming market study
November 2021
• Kevin Brennan MP publishes copyright reforming bill he reckons will fix streaming
• Statements on Kevin Brennan’s copyright reforming bill
• Domino says it is “saddened” by its ongoing Four Tet dispute
December 2021
• Kevin Brennan MP’s controversial music copyright proposals discussed in Parliament
• Four Tet allowed to add new legal claims over album takedowns in Domino dispute
• Independent publishers say that re-slicing the digital pie is the “defining issue” of the moment
January 2022
• UK competition regulator outlines scope of market study into music streaming
February 2022
• Tom Gray becomes Chair of the Ivors Academys
• Artists and managers welcome Warner’s commitment to pay royalties to unrecouped heritage artists
• Four Tet signs to Universal Music Publishing, Domino albums streaming again
March 2022
• US recorded music market grew 23% in 2021
• UK record industry revenues grew 12.8% in 2021
• Belgian performer society welcomes proposed new digital remuneration right
• Global record industry revenues grew 18.5% to $25.9 billion in 2021
• Spotify paid $7 billion to the music industry last year – and other fun stat brags
April 2022
• Universal Music confirms it will start paying royalties to unrecouped heritage artists
May 2022
• MMF launches $ong Royalties Manifesto at The Great Escape
• French performer and label groups reach voluntary agreement regarding digital remuneration
• CISAC outlines ISWC advancements in latest annual report
• Sony Music expands commitment to pay through royalties to unrecouped heritage artists
• Setlist: Sony’s announcement on unrecouped heritage artists
June 2022
• Belgium introduces ER right on streams
• Domino Records settles Four Tet dispute, commits to pay 50% royalty on digital
• IMPALA calls for French style agreements on fair digital remuneration instead of ER
• Domino comments on Four Tet settlement, insists no precedent set
• Setlist: Does Four Tet’s streaming settlement set a precedent?
July 2022
• EU Commissioner says copyright directive implementation can include a new ER right for performers
• Warner Music signs up to SoundCloud’s user-centric initiative
• Setlist: Warner Music goes user-centric with SoundCloud
• CMA declines to recommend a full market investigation into music streaming
• Mixed response from music industry to CMA’s decision on streaming investigation
August 2022
• Setlist: Streaming market just fine, says UK competition regulator
• US Congress member discusses proposed ER right for artists on American streams
September 2022
• ECSA says new GEMA study puts spotlight back on digital pie debate
• GESAC streaming report puts spotlight on price point, algorithms and the digital pie
• PRS announces plans for new portal offering easy access to song rights data
October 2022
November 2022
• Culture select committee outlines the agenda of its economics of music streaming update session
• Artist remuneration remains a key sticking point as MPs return to the economics of streaming debate
• Setlist: MPs ask for an update on the “complete reset of streaming”
December 2022
• Merck Mercuriadis criticises CMA for “passing the buck” on streaming market issues
January 2023
• Universal boss says streaming needs to shift to an “artist-centric” model
• MPs call for “more focus” on music-maker remuneration in Economics Of Music Streaming update
• New study says up to 3% of streams in France last year were manipulated
February 2023
• Universal Music announces alliance with Tidal to shake up the streaming business model
March 2023
• Universal Music chief talks more about the need to revamp the streaming model
April 2023
• IMPALA updates its ten step streaming plan, asks “is the label share being undervalued?”
May 2023
• An Ed Sheeran stream should earn more than the sound of rainfall, says Warner boss
• Sony Music chief talks streaming, short-form, gaming and AI in investor presentation
• UK government convenes working group to discuss music-maker remuneration from streaming
• UK government formally announces music metadata agreement and music-maker remuneration working group
• Music industry responds to metadata code and remuneration working group
June 2023
• Music industry organisations provide perspectives on the economics of streaming debate
• Economics Of Streaming Perspectives: Association Of Independent Music
• Economics Of Streaming Perspectives: BPI
• Economics Of Streaming Perspectives: ERA
• Economics Of Streaming Perspectives: Featured Artists Coalition
• Economics Of Streaming Perspectives: Ivor’s Academy
• Economics Of Streaming Perspectives: Musicians’ Union
• Economics Of Streaming Perspectives: Music Managers Forum
• Economics Of Streaming Perspectives: Music Publishers Association
Last updated: June 2023
