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No ‘Simple’ Fix to Low Streaming Royalties as UK Report Strikes Down ‘Equitable’ Sharing Model

A proposed equitable streaming royalty model in the UK won't fix concerns over low payments, a new report by the UK's Intellectual Property Office says

LONDON — The British government’s Intellectual Property Office has said that bringing streaming in line with TV and radio broadcasts in the U.K. by obligating record companies to pay performers ‘equitable remuneration’ does not provide “a simple solution” to creators’ concerns over low returns from services like Spotify and Apple Music – and is “unlikely to yield a net positive income for the industry at large.” In its report into the potential impact of equitable remuneration on the U.K. music business, published Monday, the Intellectual Property Office (IPO) says its introduction could result in labels reducing their investment in developing new acts and would see rightsholders paying out “a significant sum of money” in administration costs. The Council Of Music Makers noted that the IPO report “reaches no conclusions, and no decisions should be made on the basis of its ambiguous findings.” The trade group said it would continue to work with all industry stakeholders on a “wider discussion” around creator remuneration from streaming and various solutions that have been proposed.

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