UK Parliament Inquiry Recommends 'Complete Reset’ of Streaming Business

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A U.K. Parliament inquiry is calling for an overhaul of the streaming industry

calling for an “immediate government referral” of the multinational corporations that wield “extraordinary power” over the music business to the CMA.

By contrast, under the current “making available right” only the copyright owner receives payment, which it then shares with the artist according to the terms of their contract. Average royalty rates are typically set between 20% and 25% on new artist deals and far less on legacy contracts.The DCMS committee calls equitable remuneration “a simple yet effective solution to the problems caused by poor remuneration from music streaming.

The committee also calls for an end to the practice of distributing unattributed digital royalties -- so-called black box collections -- based on market share and, instead, recommends that collecting societies reinvest them back into the industry. One of the recurring topics raised during the inquiry’s hearing sessions was the issue of YouTube and how safe harbor copyright protections enable it to pay out only a fraction of what other streaming services pay rights holders.

 

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