And now for something completely different. With permission, Madam Deputy Speaker, I will make a statement about the Government’s progress with industry on the remuneration of artists in the music sector.
Music is not just the food of love. It does not just set our hearts dancing and express our deepest desires. It does not just showcase the UK to the world. As part of our dynamic creative industries, which we have identified as one of the eight priority growth sectors in our industrial strategy, it is key to our economic future as well. That is why music is at the heart of our new 10-year creative industries sector plan. Our new music growth package will more than double Government funding for the industry to £10 million annually for the next three years. That will help UK artists to achieve domestic and international success, while nurturing our grassroots music scene.
We want the UK music industry to thrive, but we know that it will not unless artists receive their fair share of the rewards, especially in the new era of streaming. The stereotype of artists starving in garrets is not a model for a successful industry. Musicians deserve their fair reward, and the industry will only flourish if new generations of musicians are able to make a living, so it is with pleasure that I announce today an important milestone: UK record labels have agreed to new measures that will boost the earnings of legacy artists, songwriters and session musicians.
The UK music industry is a global powerhouse. Coldplay, Adele, Stormzy, Ed Sheeran, Dua Lipa, Raye, Bryn Terfel, Alfie Boe, Iestyn Davies—our country has been the birthplace of genre-defining talent that has shaped the soundtrack of generations, so it is no surprise that we are the third largest music market in the world, and the second largest recorded music exporter. The first music streaming service started in 2001, and streaming now accounts for a majority of music revenue. This has created a series of challenges for the UK music industry, radically transforming how audiences experience music, how musicians earn a living, how record labels treat their artists, and how artists access different markets.
The Culture, Media and Sport Committee sought to address some of these issues in an important report on music streaming in 2021. In response, the Competition and Markets Authority completed a market study into music streaming, and the Intellectual Property Office conducted research on potential copyright reforms. In spring 2024, three years after the Committee’s report, the then Government finally launched the creator remuneration working group, which is tasked with
“exploring and considering industry-led actions on remuneration from music streaming for existing and future music creators”.
The Government convened the group once before the general election, and I chaired my first meeting with it within a month of taking office. I am pleased to announce that after six meetings and a series of bilateral discussions—some of them quite difficult—this work has resulted in a set of measures from UK record labels that they estimate will deliver tens of millions of pounds of new investment to support UK artists by 2030. Central to this is a new set of principles that will be adopted by the British Phonographic Industry and the Association of Independent Music, and recommended to their UK label members.
Some independent labels are already implementing the principles, and I am delighted to say that the three major labels—Universal Music Group, Sony Music Entertainment and Warner Music Group—will adopt them and introduce bespoke packages to boost the earnings of artists, especially legacy artists who signed up before streaming came on to the scene. In order to address the specific challenges faced by smaller labels, the BPI and the AIM are encouraging them to provide targeted support that is appropriate for their size and resources.
The principles will commit labels across the UK to providing targeted support for legacy artists, songwriters and session musicians. For legacy artists, this includes disregarding unrecouped advances, bespoke support to increase streaming engagement, and much greater clarity about the process of contract renegotiation. For songwriters, the support includes the payment of per diems for the first time, with major labels Warner UK and Universal UK committing to a payment of £75 per day, in addition to expenses. Sony UK will fund a bespoke new songwriter support programme, in partnership with the Ivors Academy, to provide financial support and assistance to songwriters; these payments will not be charged as a recoupable cost from their advance. For session musicians, the support includes an increase in session fees, agreed at the end of last year, and a commitment to reviewing their income from broadcast and public performance.
The principles announced today will complement the industry code of good practice on transparency, and the industry agreement on metadata, which we published in 2024. They mark a major milestone in the Government’s work with the music industry in response to the Culture, Media and Sport Committee’s 2021 report on the economics of music streaming. Some concerns remain with regard to the deal for session musicians, which is why I will convene a further meeting with industry to discuss those issues.
We want these measures to be delivered in full, so that artists see real improvements. The Secretary of State and I want legacy artists to see their work revitalised and introduced to new audiences, and to have their unrecouped balances disregarded and their contracts renegotiated. In order to track progress and measure success, we will work closely with members of the creator remuneration working group, including the Council of Music Makers, on implementing a robust monitoring process, through which we can evaluate the extent to which the principles improve earnings, as intended. The Government will then assess the need for further intervention to ensure that this package delivers on its objective of bringing about real change for creators.
This is neither the end of the road nor the lifting of the needle on the record, but it is a pivotal point. If the principles we have discussed are truly implemented, they have the potential to improve the lives of artists across the UK. I am deeply grateful to the BPI, the major labels and the Association of Independent Music for engaging with this work. I want to recognise the dedication of the Council of Music Makers, which includes the Featured Artists Coalition, the Ivors Academy, the Music Managers Forum, the Music Producers Guild and the Musicians’ Union, for its tireless commitment to its members. Finally, my thanks go to the Culture, Media and Sport Committee and its predecessor Committees for shining a powerful light on this issue. I commend this statement to the House.