Industry Transparency Code on Music Streaming announced by government
The music industry has agreed a Code of Good Practice on Transparency in Music Streaming.
- The Intellectual Property Office (IPO) has today published the UK Code of Practice on Transparency in Music Streaming
- The Code is a significant point in the commitment by the UK music industry to improve transparency around licensing and royalties related to music streaming
- The Code was developed collectively by an expert group from the music industry and was chaired and facilitated by the Intellectual Property Office
- The Code will help build creators’ confidence that they are being paid correctly when their music is played via streaming services
The Intellectual Property Office (IPO) has today published the UK Code of Good Practice on Transparency in Music Streaming.
The voluntary code has been developed and agreed by 12 music industry bodies representing music creators, record labels, publishers, digital service providers, distributors and collecting societies.
The agreement of this code is part of the commitment made by the government in response to the recommendations of the Culture, Media and Sport Select Committee’s Inquiry into Music Streaming.
The IPO will have oversight of the Code and its implementation and will convene meetings of signatory organisations every six months to consider how the Code is working, with a formal review of the Code in 2026.
It sets out agreed standards of good practice, forming part of a shared ambition across the music industry to build greater trust in music-maker contracts, streaming licensing deals, royalty payments, usage data, audit rights, and communication to music creators.
This is part of the process to help improve creators’ understanding of how their music is licensed, administered and used, helping build confidence and clarity that they are being paid correctly when their music is played via streaming services.
The Code is a pledge from the music industry to a race to the top on transparency and is the first such commitment of its kind in the world.
Viscount Camrose, Minister for AI and Intellectual Property, said:
From The Beatles and The Rolling Stones to Dua Lipa and Little Mix, the UK music scene is the envy of the world. In the last decade, the way that we consume our music has changed markedly, and that’s why we’re taking steps to help ensure artists get the royalties and protections they deserve when their music is played on streaming platforms.
This pioneering code, designed by the music industry with government backing, has trust at its core. I’m delighted to see the UK leading the charge to ensure our peerless creative minds get the protections they deserve, as the way we listen to our favourite tracks continues to evolve.
Lucy Frazer, Culture Secretary, said:
For decades the UK music industry has projected our soft power to the world. Our home-grown artists make awe-inspiring music that brings in billions of pounds to the economy.
As technology continues to transform the industry, musicians must be entitled to a clear and simple way of understanding what they can expect to be paid from streaming royalties.
I welcome the music industry working together on this, and look forward to this code being put into practice.
END
Notes to editors:
- the Code will come into force on 31 July 2024 and has been agreed by:
| Signatories |
|---|
| Association of Independent Music (AIM) |
| British Phonographic Industry (BPI) |
| The Digital Entertainment and Retail Association (ERA) |
| Featured Artists Coalition (The FAC) |
| Independent Society of Musicians (ISM) |
| The Ivors Academy |
| Music Managers Forum (MMF) |
| Music Producers Guild (MPG) |
| Music Publishers Association (MPA) |
| Musicians’ Union (MU) |
| Phonographic Performance Limited (PPL) |
| PRS for Music |
- the Code has been by agreed through facilitation by the IPO
- in response to Parliament’s Culture Media and Sport Committee’s Inquiry into the ‘Economics of Music Streaming’, the government recognised the need for action on transparency of royalty information and complex digital supply chains in the music streaming sector and established an industry working group to agree standards and establish a code of practice. This expert group was chaired by the IPO
- together with the Metadata Agreement, the Transparency Code is part of a shared industry ambition to build greater trust in music-maker contracts, streaming licensing deals, usage data, audit rights, royalty payments and communication to creators on the business of music streaming
- the IPO will oversee Code compliance, including a first review of implementation in early 2025 followed by a formal evaluation of impact in 2026. The Code has a resolution and escalation procedure should a person or organisation fall short of the principles set out in the Code
- the Transparency Code, the Metadata Agreement and the forthcoming working group on creator remuneration form part of a wider programme of work from the government and industry to address issues in music streaming
- as part of this programme of work, the government expects to publish details of the membership and terms of reference for a new industry working group on remuneration in the music streaming industry shortly
- the work of the creator remuneration group will be informed by the publication of independent research commissioned by the IPO into Equitable Remuneration in the Streaming Age
- previous research commissioned and published by the IPO includes the Music Creators’ Earnings in the Digital Era report and a report into Rights Reversion and Contract Adjustment
Updates to this page
Last updated 2 February 2024 + show all updates
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Added links to https://www.gov.uk/guidance/uk-voluntary-code-of-good-practice-on-transparency-in-music-streaming
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First published.