Within UK Policy

Would equitable remuneration really fix streaming pay?

Equitable remuneration promises a new income route for performers, but it also raises hard questions about contracts, labels and investment.

On this page

  • What equitable remuneration would change
  • Who might gain from a statutory performer right
  • Why labels and policymakers worry about tradeoffs
Preview for Would equitable remuneration really fix streaming pay?

Introduction

Equitable remuneration (ER) became the hardest proposed fix in the UK streaming debate because it promised the clearest structural change for performers while simultaneously threatening the commercial arrangements on which the modern recorded music business is built. Unlike transparency measures or voluntary industry codes, ER would require a change in copyright law and a redistribution of streaming income. Supporters saw it as a direct route to fairer pay, particularly for performers trapped in older contracts. Critics argued that it could reduce labels’ incentives to invest in artists, create legal complexity and produce unintended consequences across the music ecosystem. The result was a reform that attracted intense political attention but proved far more difficult to implement than many other streaming-policy proposals. UK Parliament Committees [UK Parliament]committees.parliament.ukUK Parliament CommitteesMPs call for a 'complete reset' of music streaming to fairly…15 Jul 2021 — Artists must be given a legal right…

ER debate illustration 1

What equitable remuneration would change

In UK copyright law, equitable remuneration already exists for certain uses of recorded music, such as radio broadcasting and public performance. When a track is played on radio, performers receive a statutory share of income through collective management rather than relying entirely on whatever royalty rate they negotiated with a label.

The streaming debate centred on whether a similar principle should apply to on-demand music services. Parliamentary committees examining streaming argued that performers should enjoy a statutory right to equitable remuneration for streaming income, creating a payment stream that would flow directly to performers through a collecting society rather than solely through recording contracts. [UK Parliament]committees.parliament.ukUK Parliament CommitteesMPs call for a 'complete reset' of music streaming to fairly…15 Jul 2021 — Artists must be given a legal right… [UK Parliament]committees.parliament.ukUK Parliament CommitteesMPs call for a 'complete reset' of music streaming to fairly…15 Jul 2021 — Artists must be given a legal right…

This proposal mattered because streaming is currently treated primarily as a “making available” right. In practice, performers usually assign those rights to record companies through contracts. As a result, the performer’s income depends heavily on royalty rates, recoupment provisions and contractual bargaining power. ER would partially bypass that structure by creating a statutory entitlement that could not simply be signed away. [Fladgate]fladgate.comTide change on music streaming?UK parliamentary report…2 Sept 2021 — The UK legislators' rationale for excluding “making available” from equitable remuneration was t…

The attraction of the proposal was its simplicity. Instead of renegotiating thousands of individual contracts, lawmakers could create a legal right that automatically delivered a share of streaming revenue to performers. That apparent simplicity, however, concealed much larger questions about who would ultimately bear the cost.

Who might gain from a statutory performer right

The strongest political argument for ER was that it could help performers who have little practical leverage under the current system.

Many legacy artists signed agreements long before streaming became dominant. Their contracts were negotiated in an era of physical sales, different cost structures and different expectations about how music would be consumed. Even where streaming has generated substantial catalogue revenue, performers may receive relatively modest income because of historic royalty rates or recoupment arrangements. A statutory right could create a new income stream independent of those older deals. UK Parliament Committees [UK Parliament]committees.parliament.ukUK Parliament CommitteesMPs call for a 'complete reset' of music streaming to fairly…15 Jul 2021 — Artists must be given a legal right…

Session musicians and featured performers were also frequently cited as potential beneficiaries. Because ER payments are normally distributed through collective systems rather than negotiated individually, supporters argued that they could reach categories of performers who are often weakly positioned in commercial negotiations. The UK parliamentary inquiry repeatedly heard evidence that streaming revenues had grown while many working musicians struggled to earn sustainable incomes from recordings. [UK Parliament Committees]committees.parliament.ukUK Parliament CommitteesMPs call for a 'complete reset' of music streaming to fairly…15 Jul 2021 — Artists must be given a legal right…

Supporters therefore viewed ER not merely as a royalty adjustment but as a governance mechanism. It would shift part of the system away from private contracting and towards a statutory right designed to guarantee performer participation in streaming revenues. That explains why campaign groups associated with the streaming reform movement often treated ER as the central reform rather than just one proposal among many. [Musicians' Union]musiciansunion.org.ukMusicians' UnionGovernment Gives View on Measures to Fix Music StreamingEquitable remuneration and rights of contract adjustment and righ…

Why labels and policymakers worry about trade-offs

The difficulty emerged when policymakers tried to determine where the money would come from.

Streaming services already pay a substantial share of revenue to rights holders. ER does not create new money; it reallocates existing money. The critical question therefore became whether performers’ statutory payments would come from record labels, from streaming platforms, from other rights holders, or from some combination of all three. [GOV.UK]GOV.UKequitable remuneration er in the streaming ageEquitable Remuneration (ER) in the streaming age19 Feb 2024 — Equitable Remuneration (ER) in the streaming age. The potential economic im…

Record companies argued that changing the allocation of streaming income could weaken the economics that support artist investment. Labels finance recording, marketing, promotion, touring support and talent development. Their concern was that if a mandatory performer share reduced the revenues attached to recording rights, investment budgets could shrink, particularly for new and riskier artists. This argument resonated with policymakers because UK music policy has long sought both creator fairness and continued industry growth. [GOV.UK]GOV.UKthe potential economic impact of er on performers and the music market in the ukIt is a…Read more…

Another concern involved market structure. Streaming contracts are interconnected with licensing arrangements, advances, catalogue valuations and international rights frameworks. A statutory intervention targeted at one part of the chain could create knock-on effects elsewhere. Even supporters of reform acknowledged that modelling those effects was difficult. The government therefore commissioned research into the potential economic consequences of ER before considering legislative action. [GOV.UK]GOV.UKthe governments work on music streaminggovernment's work on music streaming22 July 2025: Publication of label-led measures to boost music creator earnings, agreed through the C…Published: July 2025

The debate also exposed a philosophical divide. Supporters framed streaming remuneration as a labour and fairness issue. Opponents framed it as an investment and rights-management issue. Both sides agreed that many performers earned too little from streaming; they disagreed on whether copyright law should be used to redistribute income after contracts had been signed.

ER debate illustration 2

Why the evidence did not settle the argument

One reason ER became politically difficult is that the evidence base could support different interpretations.

Parliament’s DCMS Committee concluded that performers should receive a statutory right to equitable remuneration and described it as an effective response to poor streaming remuneration. The committee’s 2021 report made ER one of its most prominent recommendations and linked it to a broader call for a “complete reset” of streaming economics. UK Parliament Committees [UK Parliament]committees.parliament.ukUK Parliament CommitteesMPs call for a 'complete reset' of music streaming to fairly…15 Jul 2021 — Artists must be given a legal right…

However, subsequent government work focused heavily on assessing economic impacts and exploring alternatives. The Intellectual Property Office commissioned research examining how ER might affect performers and the wider market. Rather than producing an uncontested policy consensus, the process highlighted competing assumptions about investment, bargaining power and distributional outcomes. [GOV.UK]GOV.UKnew label led measures to boost income for uk music creatorslabel-led measures to boost income for UK music…22 Jul 2025 — Driven by the government's work on streaming, UK record companies agree… [GOV.UK]GOV.UKpolitical peerages may 2026Peerages May 2026…Published: may 2026

That uncertainty mattered because ER was not merely a technical copyright amendment. It would alter revenue flows across a sector worth billions of pounds. Policymakers faced pressure to demonstrate not only that performers would benefit, but also that wider consequences would not undermine the industry’s capacity to develop future artists.

ER debate illustration 3

Why voluntary reform advanced while ER stalled

The UK government’s eventual approach illustrates why ER became the hardest streaming fix.

Measures such as metadata improvements, transparency commitments and industry principles could be pursued through working groups and negotiated agreements. They promised incremental gains without fundamentally rewriting copyright law. By contrast, ER required Parliament to choose sides in a dispute involving performers, labels, publishers, collecting societies and digital services. [UK Parliament]committees.parliament.ukUK Parliament CommitteesMPs call for a 'complete reset' of music streaming to fairly…15 Jul 2021 — Artists must be given a legal right… [GOV.UK Assets]assets.publishing.service.gov.ukCreator Remuneration Working Group To RRemuneration Working Group: Terms of Reference19 Feb 2024 — The CRWG is tasked with exploring and considering industry-led actions on rem…

From 2024 onward, government-backed creator remuneration discussions increasingly focused on industry-led solutions. By 2025, the government highlighted voluntary label commitments and remuneration principles rather than announcing legislation introducing ER. Those initiatives were presented as a way to improve creator outcomes while avoiding the risks associated with a statutory overhaul. [Hansard]hansard.parliament.ukCreator Remuneration From Music Streaming Label Led PrinciplesHansardCreator Remuneration from Music Streaming: Label-led22 Jul 2025 — UK record companies have now agreed to a set of voluntary measur… [UK Parliament]committees.parliament.ukUK Parliament CommitteesMPs call for a 'complete reset' of music streaming to fairly…15 Jul 2021 — Artists must be given a legal right…

For supporters of ER, this outcome demonstrated the limits of voluntary reform. For opponents, it reflected a pragmatic recognition that streaming remuneration problems are complex and cannot be solved through a single legal intervention. The continuing disagreement explains why equitable remuneration remained at the centre of the UK streaming debate long after other reform proposals moved into practical implementation.

The central dilemma

The enduring appeal of equitable remuneration is easy to understand: it offers a straightforward promise that performers should receive a guaranteed share of streaming income regardless of contractual bargaining power. The reason it became the hardest fix is equally clear. Achieving that promise requires changing legal rights, redistributing revenues and potentially reshaping incentives across the recorded music business.

As a result, ER became the point where the UK’s streaming reform project confronted its deepest question: is fairer pay best achieved through new statutory rights, or through negotiated improvements within the existing market structure? The difficulty of answering that question explains why equitable remuneration remained the most contested and politically sensitive proposal of the entire streaming reform agenda. [parallelparliament.co.uk]parallelparliament.co.ukmusic streamingQ. Music: Streaming8 Apr 2025 — This Government recognises the importance of ensuring that music creators are fairly compensated for thei… [UK Parliament]committees.parliament.ukUK Parliament CommitteesMPs call for a 'complete reset' of music streaming to fairly…15 Jul 2021 — Artists must be given a legal right…

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Endnotes

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    Link: https://committees.parliament.uk/work/646/economics-of-music-streaming/news/156593/mps-call-for-a-complete-reset-of-music-streaming-to-fairly-reward-performers-and-creators/
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    UK Parliament CommitteesMPs call for a 'complete reset' of music streaming to fairly...15 Jul 2021 — Artists must be given a legal right...

  2. Source: publications.parliament.uk
    Link: https://publications.parliament.uk/pa/cm5802/cmselect/cmcumeds/719/71902.htm
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    UK ParliamentEconomics of music streaming: Government and Competition...22 Sept 2021 — Recommendation 6: We recommend that the Governmen...

  3. Source: publications.parliament.uk
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    It is a...Read more...

  4. Source: fladgate.com
    Title: Tide change on music streaming?
    Link: https://www.fladgate.com/insights/uk-parliamentary-report-calls-for-equitable-remuneration-for-performers
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    UK parliamentary report...2 Sept 2021 — The UK legislators' rationale for excluding “making available” from equitable remuneration was t...

  5. Source: GOV.UK
    Title: equitable remuneration er in the streaming age
    Link: https://www.gov.uk/government/publications/equitable-remuneration-er-in-the-streaming-age
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    Equitable Remuneration (ER) in the streaming age19 Feb 2024 — Equitable Remuneration (ER) in the streaming age. The potential economic im...

  6. Source: GOV.UK
    Title: the potential economic impact of er on performers and the music market in the uk
    Link: https://www.gov.uk/government/publications/equitable-remuneration-er-in-the-streaming-age/the-potential-economic-impact-of-er-on-performers-and-the-music-market-in-the-uk
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    It is a...Read more...

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    UK ParliamentGovernment Response to the Committee's Fifth Report27 Mar 2023 — Draft agreements on metadata and transparency, developed by...

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    Link: [https://assets.publishing.service.gov.uk/media/65d37f420f4eb10064a98169/Creator_Remuneration_Working_Group_-ToR.pdf](https://assets.publishing.service.gov.uk/media/65d37f420f4eb10064a98169/Creator_Remuneration_Working_Group-_ToR.pdf)
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    Remuneration Working Group: Terms of Reference19 Feb 2024 — The CRWG is tasked with exploring and considering industry-led actions on rem...

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    government's work on music streaming22 July 2025: Publication of label-led measures to boost music creator earnings, agreed through the C...

    Published: July 2025

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    HansardCreator Remuneration from Music Streaming: Label-led22 Jul 2025 — UK record companies have now agreed to a set of voluntary measur...

  11. Source: questions-statements.parliament.uk
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    UK ParliamentCreator Remuneration from Music Streaming: Label-led...22 Jul 2025 — The final issue addressed was the remuneration of crea...

  12. Source: GOV.UK
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    label-led measures to boost income for UK music...22 Jul 2025 — Driven by the government's work on streaming, UK record companies agree...

  13. Source: parallelparliament.co.uk
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    Q. Music: Streaming8 Apr 2025 — This Government recognises the importance of ensuring that music creators are fairly compensated for thei...

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    Government Announces Equitable Remuneration Working...22 Feb 2024 — MU General Secretary Naomi Pohl evaluates why the newly announced eq...

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Additional References

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    DCMS Economics Of Streaming InquiryThe inquiry sought to investigate the economic impact of streaming on creators remuneration and the wi...

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    The Official Website For UK Tourism | VisitBritainFrom bustling city experiences to countryside rambles and coastal dips – discover adven...

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    Equitable remuneration for streaming. Perhaps the most radical reform proposed in the report is the extension of the equitable remunerati...

  6. Source: musicbusinessworldwide.com
    Link: https://www.musicbusinessworldwide.com/uk-lawmakers-have-stopped-flirting-with-the-idea-of-adopting-an-equitable-remuneration-payout-model-for-on-demand-music-streaming/
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    UK government confirms it has no intention to adopt '...20 Feb 2024 — The report recommended that the government introduce legislation i...

  7. Source: musicbusinessworldwide.com
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    DCMS rules out broadcast-style equitable remuneration for...27 Feb 2024 — DCMS Minister Julia Lopez has said the government does not int...

  10. Source: councilmusicmakers.org
    Title: creator remuneration working group cmm opening statement
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    Creator Remuneration Working Group: CMM Opening...18 Apr 2024 — This group will consider the issues regarding how music-makers are paid...

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