UK streaming inquiry: SoundCloud, Twitch and YouTube to face questions today

The committee will hear from the platforms, which host user-generated content. MPs will consider how artists, songwriters and producers can monetise their content and the level of responsibility each platform should take in remunerating creators.

Representatives from trade bodies that represent different areas of the UK music industry – including the Music Publishers Association, the British Phonographic Industry, The Ivors Academy and the Musicians Union – will also give evidence.

The MPs will focus on issues underlying the production and licensing of music streaming. The fifth sitting will begin at 4.30pm CAT and can be viewed here.

Last week, the committee heard from the UK’s independent music sector during the inquiry’s fourth session. The session discussed how indie labels’ deals compare to those of the majors. Jazz re:freshed co-CEO and executive director Yvette Griffith outlined how the label had tried to avoid the drawbacks around recoupment by making it clear what costs artists are not expected to incur, such as music videos, photography and artwork. However, Beggars Group general counsel Rupert Skellett said the role of traditional label deals was import, especially for emerging musicians.

Another sticky issue was whether the major labels’ deals with streaming services included guarantees of playlisting and other promotion at the expense of independents. “We don’t know. The deals between the majors and the platforms are top secret,” Skellett said.

Association of Independent Music CEO Paul Pacifico said: “We absolutely hope not. I think consumers subscribe to streaming platforms, and they want those recommendations to be based on their listening habits, and what the platform genuinely thinks they will be interested in, rather than potentially some other deal with a commercial interest.”

Skellett also pointed out that independents are different to major labels in that they are in the business because of passion, while the latter companies are commercially driven.

The panel was asked about whether the user-centric payout system would make a significant difference to the industry and to artists’ and songwriters’ royalties. There were contrasting responses. Griffith made it clear that she did not back the idea: “I would say no. I don’t think user-centric is going to work, certainly for the indie sector”. Skellett and Pacifico, however, felt it would be a fairer model to existing ones.

A report published recently by the National Music Centre (CNM) in France reveals that user-centric streaming payouts would have a limited impact.