Creator Remuneration from Music Streaming: Label-led Principles

The UK’s music industry is a globally significant sector, recognised for its cultural and economic contribution. The UK is currently the third largest music market in the world and the second largest exporter of recorded music. This success is underpinned by the work of music creators, songwriters, composers, musicians, producers and performers, whose talent and dedication are fundamental to the strength and diversity of the sector.

In response to the 2021 Digital, Culture, Media and Sport Committee report on the economics of music streaming, the Government committed to addressing the concerns raised by creators and industry stakeholders about fairness, transparency and remuneration in the streaming economy.

Since then, the Government have led a comprehensive work programme that includes:

A market study conducted by the Competition and Markets Authority;

Research by the Intellectual Property Office into copyright reform; and

Workstreams focused on improving metadata and transparency.

These efforts have led to significant progress, including industry-led agreements aimed at fostering a fairer and more sustainable music ecosystem.

The final issue addressed was the remuneration of creators from music streaming. Since 2024, the Government have supported industry-led efforts to tackle concerns around low streaming royalties through the DCMS-led creator remuneration working group. This group served as a forum for constructive dialogue among key industry stakeholders. It involved representatives from the music creator community, record labels, music publishers, streaming platforms and collective management organisations, who met regularly to advance collaborative solutions and drive meaningful change.

Following a series of constructive discussions, UK record companies have now agreed to a set of voluntary measures that aim to improve remuneration outcomes for UK music creators. This includes bespoke commitments to deliver them made by the UK divisions of the world’s largest three labels, Universal Music Group, Sony Music Entertainment and Warner Music Group, which are estimated to deliver tens of millions of pounds in new investment to support creators by 2030. These measures seek to support fair remuneration for our incredible creators, as well as enhancing the growth of our world-leading sector.

The principles announced today will complement the industry code of good practice on transparency and the industry agreement on metadata published in 2024, and mark a major milestone in the Government’s work with the music industry in response to the DCMS Committee’s 2021 report on the economics of music streaming. These principles have been developed by the British Phonographic Industry and the Association of Independent Music, and are recommended to their member organisations across the sector.

The principles include:

Disregarding unrecouped advances in defined circumstances;

Providing resources to promote catalogue music through streaming; and

Improving clarity on the process for contract renegotiation.

The payment of per diems at label-organised sessions, 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 to their advance.

Increases to minimum session fees;

A review of income from broadcast and public performance; and

A commitment to convene a further meeting to address outstanding concerns.

I recognise that there are ongoing concerns, particularly in relation to session musicians. We therefore intend to convene further discussions with industry stakeholders to examine these matters in more detail.

The Government expect full delivery of these measures and will work with members of the creator remuneration working group, including the Council of Music Makers, to develop a robust monitoring process. This process will assess the extent to which the principles result in improved remuneration outcomes for creators. The Government will then consider whether further intervention is required to achieve its objective of a fair and sustainable music streaming ecosystem.

I am grateful to the BPI, the major labels and AIM for engaging constructively with this work. I want to applaud the dedication and engagement of the Council of Music Makers, including Featured Artists Coalition, the Ivors Academy, Music Managers Forum, the Music Producers Guild and the Musicians’ Union for their tireless commitment to the strength and success of their members.

Finally, I thank the Culture, Media and Sport Committee and its predecessor Committees for their role in bringing attention to this important issue. The Government remain committed to supporting a thriving UK music industry that fairly rewards its creators and continues to succeed at home and internationally.

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