In the age of streaming, John Lennon would have become an accountant
Once the record labels, app stores and streaming services have taken a cut, little is left for musicians
The music industry gathered in London this week to celebrate the achievements of the most important people among us: the songwriters.
Without them, there would be no Penny Lane, Bohemian Rhapsody would be just a silhouette and Shape of You would be the title of a dietary guide.
Adele, Ed Sheeran, Coldplay, Dave and Raye were all nominated for the coveted songwriter of the year award at this year’s Ivor Novello Awards and for one day everyone celebrated the role the songwriter plays in our industry.
However, for thousands of writers there remains a gulf between the crucial role they play and the pay they receive for their work.
Streaming should have triggered a boom era for artists and songwriters – almost every song would effectively be re-released and available globally 24/7. However, once the streaming services, app stores and record labels dip their hands in the pot, only a tiny fraction of the money you spend is earmarked for the people who make the music – if it reaches them at all.
Additionally the deals between the streaming services and major labels which cover the rate of pay for streaming is under “NDA” (nondisclosure agreement), which in simple terms means it’s a secret.
Record labels take life-long contracts signed by musicians in the 1970s, 80s or 90s, long before streaming was envisaged, and retrospectively apply them to the new streaming platforms, in many cases passing on only 8.25pc of the revenue to performers and writers – a historical quirk dating back to the days when they pressed thousands of vinyl records, shipped them to stores and took the risk on whether they would sell.
Musicians are independent small businesses. They create songs, then promote them, sell them and earn an income when they are played. Yet an artist who wants to promote their music is denied access to basic information which any business would need when making investment or cost-of-living decisions.
The result is that an artist or a songwriter does not know – and cannot find out – what their rate of pay is. They have no idea whether investing in a full orchestra or an online marketing campaign will give them the best return on their next album. Information to make vital business decisions, available to small businesses across the world, is denied to creators by this system.
The Ivor Novello Awards recognise songwriting excellence. Our musical heritage from the Rolling Stones to Elton John, Phil Collins and Dua Lipa has put Britain at the cultural forefront of the world. But the chill winds of data secrecy threatens to stifle and starve our creative talents. Do we want the next John Lennon to choose to be an accountant or lawyer rather than write songs because they don’t know whether they can earn a living?
At last, we’re waking up to the danger. The Competition and Markets Authority is conducting a market study into how the music industry is operating. Last year the Commons Digital, Culture, Media and Sport select committee published a hardhitting report calling for change so that artists and songwriters are fairly paid for their work. The draft Digital Markets Bill, announced in the Queen’s Speech last week, intends to put in place measures enabling the CMA to force big tech to share the data. This will allow our music sector to thrive once again.
So as the music industry celebrates its songwriters, let’s embrace a future where the UK’S music industry is able to thrive and bring joy to music lovers around the world for many decades to come.
‘An artist or a songwriter does not know – and cannot find out – what their rate of pay is’