MPs have called for a "complete reset" of the way in which artists are paid royalties for their performances — especially from streaming services.

The Parliamentary Committee for Digital, Culture, Media & Sport reported that whilst streaming had "undoubtedly helped save the music industry" after decades of piracy issues and even non-payment, it also felt that it was, "...clear that what has been saved does not work for everyone".

Losing out

In releasing the findings of a six-month process, the Committee Chairman Julian Knight, MP, stated: "While streaming has brought significant profits to the recorded music industry, the talent behind it — performers, songwriters and composers — are losing out.

Only a complete reset of streaming that enshrines in law their rights to a fair share of the earnings will do."

The UK market worth to record labels from streaming at present is around £736.5 million per year, with artists only receiving on average 16% in payment. The committee said that royalties should instead be split 50/50.

Payments

The MPs were informed that Spotify is understood to pay between £0.002 and £0.0038 per stream, while Apple Music pays about £0.0059. YouTube pays less — about £0.00052 (or 0.05 pence) per stream.

At present all that money goes to 'rights-holders' — a term that covers record companies to artists who release their own music. It was reported that often artists receive less than 13% of the per-stream royalty.

And whilst some self-promoting or independent label artists may get more, a recent survey by the Ivors Academy and Musicians' Union found that in 2019, 82% of professional musicians made less than £200 from streaming, whilst only 7% made more than £1,000.

As an example given to the Committee, the songwriter Fiona Bevan revealed she'd earned just £100 for a track on Kylie Minogue's number one album, 'Disco'.

Narrow margins

Giving evidence to the Committee, the Sony, Universal and Warner Music labels were accused of a "lack of clarity" by MPs, although they responded by saying that they were in a "narrow margin" business.

The Committee recommended a "simple yet effective solution" and that the government pass legislation to enable performers the right to "equitable remuneration" in line with the current UK law when songs are played on radio and TV.

Only a complete reset of streaming that enshrines in law their rights to a fair share of the earnings will doCommittee Chairman Julian Knight, MP

Landmark

The response to the report has been positive, with the Featured Artists Coalition and Music Managers Forum saying the "landmark" report could "fundamentally improve" the economic situation for thousands of musicians.

However, the industry trade body, the British Phonographic Industry, was reported as stating that streaming offered artist who achieved 10 million streams a year (reported to be around 2000 this year) could earn around £29,000 — the equivalent of selling 10,000 CDs.

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