UK Musicians to Receive Better Royalty Transparency with New Streaming Code

In the UK, a new code has been introduced with the intention of bringing greater transparency and protection to musicians regarding the royalties they earn from music streaming services. This code is the result of collaborative efforts by various music industry stakeholders, including notable entities such as the British Phonographic Industry (BPI).

Improving Industry Standards

The code, spearheaded by the Intellectual Property Office (IPO), outlines a commitment to elevate the level of transparency within music streaming. It presents an agreed-upon standard of practice that labels, distributors, digital service providers (DSPs), and creators should adhere to.

Ensuring Fairness for Artists

Highlighting the UK's leading role in safeguarding artist protections, Viscount Camrose, the Minister for AI and Intellectual Property, voiced his support for the initiative. The code includes clauses such as the necessity for contracts to clearly state how royalties are calculated, the methodology for sharing this information, and how often it will be communicated to the artists.

Moreover, it underscores the importance of creators having access to accurate accounting records detailing streaming royalties and the right to conduct an audit on such financial information. This measure is aimed at fostering trust and ensuring artists can confidently understand and exercise their rights.

Non-Binding But Influential

Although adherence to the code is voluntary and not legally binding, it signifies the industry's collective decision to promote transparency. The code will go into effect on July 31 and is slated for a formal review two years later, to assess its impact and compliance levels within the industry.

Culture Secretary Lucy Frazer also commented on the importance of comprehensible royalty systems in the evolving digital landscape of music, expressing her enthusiasm for the industry's collaborative initiative.

The formation of the code followed a Parliamentary inquiry into the economics of music streaming, which prompted the establishment of an industry working group. This group, headed by the IPO, worked towards developing the code and setting the standards outlined within.

transparency, streaming, royalties