Economics of music streaming Contents

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Contents

Summary

1 Introduction

The economics of music streaming

The loss of live music income

Our inquiry

Our Report

2 The dominance of digital music

Significance of the UK market

Advent of music streaming

Music streaming service models

Copyright and remuneration from music streaming

When music is streamed

How rights are exploited

How rightsholders are remunerated

The consumer experience

Consumer benefits from streaming

Changing consumption habits

3 Creator remuneration

Remuneration of recording rightsholders

Impact on performers

Equitable remuneration

Remuneration of song rightsholders

Valuation of the song

Impact on music publishing

Metadata

Royalty chains

4 The market for music rights

Consolidation

Recent historic trends

State of the market

Market dominance

Competition concerns

Oligopsony in asset acquisition

Oligopoly in music licensing

Conflict of interest in negotiations

Transparency

Non-disclosure agreements

Transparency obligations

5 The music streaming market

Competition in the streaming market

Technology-driven challenges to the market

Algorithms and playlists

User data

Vertical integration

Prominence

Safe harbour

Safe harbour provisions in law

Economic implications of safe harbour

EU Directive on Copyright in the Digital Single Market

Payment models

Pro-rata system

Alternative models

Livestreaming and digital music futures

Annex 1: Glossary of terms

Annex 2: Music streaming service models

Conclusions and recommendations

Formal minutes

Witnesses

Published written evidence

List of Reports from the Committee during the current Parliament