Within UK Policy

Why old record deals still shape streaming pay

Older contracts can leave legacy artists with weak streaming income, making them a key test of whether voluntary label principles go far enough.

On this page

  • How pre streaming contracts create modern problems
  • Why legacy support became part of the label principles
  • What voluntary fixes leave unresolved
Preview for Why old record deals still shape streaming pay

Introduction

Legacy artists became a central test of streaming fairness because they exposed a gap between the success of the modern streaming economy and the contracts that still govern much of the music people listen to today. Many recordings streamed millions of times each month were created under agreements signed decades before Spotify, Apple Music or even digital downloads existed. As streaming replaced sales and downloads as the industry’s dominant revenue source, questions emerged about whether those older deals were delivering a fair share of income to the performers whose recordings continued to generate value. [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…

Legacy artists illustration 1 In the UK debate over music streaming, legacy artists therefore became more than a special-interest group. They served as a practical test of whether voluntary reforms, transparency measures and label commitments could correct historical imbalances without changing copyright law. If the system could not improve outcomes for creators tied to pre-streaming contracts, critics argued, it was difficult to claim that streaming fairness had been meaningfully addressed. [GOV.UK]GOV.UKrights reversion and contract adjustmentFeb 6, 2023 — This report investigates two proposals that have been made to protect the contractual interests of UK music creators by mak…

How pre-streaming contracts create modern problems

The streaming economy distributes revenue through contractual structures that often originated in a very different marketplace. Many artists signed recording agreements when income came primarily from physical sales, licensing and broadcast uses. Those contracts frequently gave labels extensive control over recordings in exchange for advances, marketing investment and distribution services. [GOV.UK]GOV.UKindustry transparency code on music streaming announced by governmentIndustry Transparency Code on Music Streaming…31 Jan 2024 — The voluntary code has been developed and agreed by 12 music industry bodi…

When streaming became dominant, the rights embedded in those older agreements generally remained in force. As a result, artists whose catalogues gained new audiences online often found that streaming revenue flowed through royalty formulas designed for an earlier era. Some performers continued to face unrecouped balances from advances received decades earlier, meaning they saw little or no royalty income despite ongoing consumption of their recordings. This issue became particularly visible in discussions surrounding older catalogue acts whose music remained commercially valuable long after the original contracts were signed. [Pitchfork]pitchfork.comThis new "Legacy Unrecouped Balance Program" is part of Sony's "Artists Forward" initiative to enhance communication and transparency wit…

The UK Parliament’s inquiry into music streaming repeatedly highlighted concerns that streaming had amplified longstanding structural problems rather than creating entirely new ones. The inquiry concluded that performers and creators needed stronger protections because existing contractual arrangements often left them with limited bargaining power when technology transformed the market. [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…

Legacy artists became especially important in this debate because their circumstances offered a clear illustration of the problem. New artists may negotiate contracts with streaming already in mind. Older artists often could not. The fairness question therefore became: should agreements negotiated before the digital era continue to determine streaming income decades later? [GOV.UK]GOV.UK29 Nov 2022 — The rise of music streaming has given consumers easy access to large catalogues of music covering an array of genres and ti…

Why streaming revived old disputes

Streaming turned catalogue recordings into continuously monetised assets. Instead of relying on periodic reissues or compilation albums, older recordings became permanently available worldwide. A song recorded in the 1970s or 1980s could generate revenue every day through playlists, recommendations and algorithmic discovery. [GOV.UK]GOV.UKthe potential economic impact of er on performers and the music market in the ukThe potential economic impact of ER on performers and…19 Feb 2024 — The right to equitable remuneration is a simple yet effective solu…

That renewed commercial life prompted artists and estates to revisit assumptions embedded in historical contracts. The issue is not purely theoretical. Rights disputes involving classic recordings have continued to emerge as parties argue over whether agreements drafted long before the internet should govern modern streaming exploitation. Recent litigation involving recordings by members of the Jimi Hendrix Experience illustrates how streaming has revived debates about ownership, performer rights and the interpretation of contracts written in the 1960s and 1970s. [Reuters]reuters.comHendrix classic albums under spotlight in UK rights battle with SonyThe estates of bassist Noel Redding and drummer Mitch Mitchell, key members of The Jimi Hendrix Experience, have sued Sony Music Entertai…

The fact that such recordings remain valuable decades later strengthened the argument that legacy creators deserved a mechanism to revisit arrangements that may never have contemplated perpetual global digital distribution. [GOV.UK]GOV.UKnew label led measures to boost income for uk music creatorsNew label-led measures to boost income for UK music…22 Jul 2025 — Driven by the government's work on streaming, UK record companies ag…

Legacy artists illustration 2

Why legacy support became part of the label principles

As the UK government pursued voluntary rather than legislative reform, legacy artists became one of the most visible groups that policymakers and industry bodies sought to address. This was partly because their circumstances were easier to identify than broader questions about what constitutes a fair streaming rate.

Several reform proposals focused directly on the challenges faced by artists with older contracts. These included equitable remuneration, contract adjustment mechanisms and rights reversion proposals. Although these approaches differed, they shared a common premise: creators should have some way to improve their position when market conditions change dramatically after a contract is signed. [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]GOV.UKernment secures label led measures to boost earnings for uk artistssecures label-led measures to boost earnings…Jul 22, 2025 — The principles include a new framework for the renegotiation of contracts…

The eventual UK process placed greater emphasis on voluntary industry measures. In 2025, label-led creator remuneration principles included commitments aimed at improving outcomes for creators, with particular attention paid to older artists and catalogue recordings. The package included frameworks intended to help artists on pre-digital deals seek improved arrangements and initiatives designed to increase the visibility and commercial performance of legacy catalogues on streaming services. [Hansard]hansard.parliament.ukCreator Remuneration From Music Streaming Label Led PrinciplesRemuneration from Music Streaming: Label-led22 Jul 2025 — UK record companies have now agreed to a set of voluntary measures that aim to…

The focus on legacy creators was politically significant. It allowed labels and government to demonstrate tangible action in an area where concerns were widely acknowledged, while avoiding immediate changes to copyright law. Helping artists whose contracts pre-dated streaming became a way of showing that voluntary reform could produce measurable benefits. [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…

What voluntary fixes leave unresolved

The central criticism of voluntary measures is that they depend on label policies rather than enforceable rights. Supporters argue that improved transparency, renegotiation frameworks and targeted support can deliver practical benefits more quickly than legislative change. Critics respond that voluntary commitments cannot guarantee fair outcomes for every creator. [2councilmusicmakers.org]councilmusicmakers.orgcrwg outcomes statementCreator Remuneration Working Group: Outcomes + Next…22 Jul 2025 — The government has published a statement on the outcomes of the Crea…

This disagreement is most visible in debates over equitable remuneration. Creator groups, including the Musicians’ Union and others involved in the streaming reform campaign, have argued that performers need a statutory right to receive a share of streaming income regardless of contractual arrangements. Advocates contend that such a right would be especially valuable for legacy artists trapped by historical agreements. [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… [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…

Voluntary schemes also leave questions about consistency. Some labels may offer improved terms, waive certain historical barriers or create special programmes for older artists, while others may take a different approach. Sony’s earlier decision to begin paying certain unrecouped legacy artists despite outstanding balances demonstrated that labels can change policy without legislation, but it also highlighted that such reforms remain dependent on company choices rather than universal legal standards. [Pitchfork]pitchfork.comThis new "Legacy Unrecouped Balance Program" is part of Sony's "Artists Forward" initiative to enhance communication and transparency wit…

Another unresolved issue is scale. Improving a subset of legacy contracts may help many artists, yet it does not automatically address the broader debate about how streaming revenue should be distributed across the industry. Critics therefore view legacy-focused initiatives as meaningful but incomplete steps within a larger argument about creator remuneration. [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… [Taylor & Francis Online]tandfonline.comTaylor & Francis OnlineThe DCMS Committee's inquiry on the economics of music…by A White · 2023 · Cited by 7 — The introduction of a r…

Legacy artists illustration 3

Why legacy artists remain the fairness benchmark

Legacy artists continue to occupy a special place in the streaming debate because they embody the tension between contractual certainty and evolving notions of fairness. Their recordings help drive engagement on streaming services, yet many operate under agreements negotiated for a fundamentally different marketplace. [GOV.UK]GOV.UKrights reversion and contract adjustmentFeb 6, 2023 — This report investigates two proposals that have been made to protect the contractual interests of UK music creators by mak…

For policymakers, the question is not simply whether older artists deserve support. It is whether a modern streaming economy can claim to be fair when significant parts of its catalogue are governed by terms created before digital music existed. The UK’s reliance on transparency codes, voluntary principles and industry-led solutions means that outcomes for legacy artists remain one of the clearest measures by which those reforms are judged. If older creators see meaningful improvements in income, information and bargaining power, voluntary reform gains credibility. If not, pressure for stronger legal intervention is likely to persist. [GOV.UK]GOV.UKindustry transparency code on music streaming announced by governmentIndustry Transparency Code on Music Streaming…31 Jan 2024 — The voluntary code has been developed and agreed by 12 music industry bodi… [GOV.UK]GOV.UK29 Nov 2022 — The rise of music streaming has given consumers easy access to large catalogues of music covering an array of genres and ti…

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Endnotes

  1. Source: committees.parliament.uk
    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/
    Source snippet

    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: GOV.UK
    Title: rights reversion and contract adjustment
    Link: https://www.gov.uk/government/publications/economics-of-streaming-contract-adjustment-and-rights-reversion/rights-reversion-and-contract-adjustment
    Source snippet

    Feb 6, 2023 — This report investigates two proposals that have been made to protect the contractual interests of UK music creators by mak...

  3. Source: GOV.UK
    Title: industry [transparency code]({{ ‘transparency/’ | relative_url }}) on music streaming announced by government
    Link: https://www.gov.uk/government/news/industry-transparency-code-on-music-streaming-announced-by-government
    Source snippet

    Industry Transparency Code on Music Streaming...31 Jan 2024 — The voluntary code has been developed and agreed by 12 music industry bodi...

  4. Source: pitchfork.com
    Link: https://pitchfork.com/news/sony-music-to-pay-royalties-to-unrecouped-legacy-artists-and-producers-in-major-policy-change
    Source snippet

    This new "Legacy Unrecouped Balance Program" is part of Sony's "Artists Forward" initiative to enhance communication and transparency wit...

  5. Source: publications.parliament.uk
    Title: UK Parliament Economics of music streaming
    Link: https://publications.parliament.uk/pa/cm5802/cmselect/cmcumeds/50/5005.htm
    Source snippet

    UK ParliamentEconomics of music streaming - Parliament UK - UK Parliament15 Jul 2021 — Though streaming has realised price and convenienc...

  6. Source: GOV.UK
    Link: https://www.gov.uk/government/publications/music-and-streaming-market-study-final-report/executive-summary
    Source snippet

    29 Nov 2022 — The rise of music streaming has given consumers easy access to large catalogues of music covering an array of genres and ti...

  7. Source: reuters.com
    Title: Hendrix classic albums under spotlight in UK rights battle with Sony
    Link: https://www.reuters.com/business/media-telecom/hendrix-classic-albums-under-spotlight-uk-rights-battle-with-sony-2025-12-09/
    Source snippet

    The estates of bassist Noel Redding and drummer Mitch Mitchell, key members of The Jimi Hendrix Experience, have sued Sony Music Entertai...

  8. Source: publications.parliament.uk
    Link: https://publications.parliament.uk/pa/cm5802/cmselect/cmcumeds/50/5006.htm
    Source snippet

    It is a...Read more...

  9. 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
    Source snippet

    The potential economic impact of ER on performers and...19 Feb 2024 — The right to equitable remuneration is a simple yet effective solu...

  10. Source: GOV.UK
    Title: new label led measures to boost income for uk music creators
    Link: https://www.gov.uk/guidance/new-label-led-measures-to-boost-income-for-uk-music-creators
    Source snippet

    New label-led measures to boost income for UK music...22 Jul 2025 — Driven by the government's work on streaming, UK record companies ag...

  11. Source: hansard.parliament.uk
    Title: Creator Remuneration From Music Streaming Label Led Principles
    Link: https://hansard.parliament.uk/commons/2025-07-22/debates/25072227000013/CreatorRemunerationFromMusicStreamingLabel-LedPrinciples
    Source snippet

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

  12. Source: questions-statements.parliament.uk
    Link: https://questions-statements.parliament.uk/written-statements/detail/2025-07-22/hlws886
    Source snippet

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

  13. Source: councilmusicmakers.org
    Title: crwg outcomes statement
    Link: https://councilmusicmakers.org/crwg-outcomes-statement/
    Source snippet

    Creator Remuneration Working Group: Outcomes + Next...22 Jul 2025 — The government has published a statement on the outcomes of the Crea...

  14. Source: committees.parliament.uk
    Link: https://committees.parliament.uk/writtenevidence/15144/pdf/
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    UK Parliament CommitteesWritten evidence submitted by the Musicians' UnionEquitable remuneration for performers on streaming; we believe...

  15. Source: publications.parliament.uk
    Title: uk Creator remuneration
    Link: https://publications.parliament.uk/pa/cm5901/cmselect/cmcumeds/293/report.html
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    remuneration - Parliament UKNovember 1, 2024 — Economics of music streaming · Introducing a legal right for performers to be paid under a...

    Published: November 1, 2024

  16. Source: committees.parliament.uk
    Title: uk Economics of music streaming: follow-up
    Link: https://committees.parliament.uk/work/7041/economics-of-music-streaming-followup/publications/
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    The Committee published its Report in July 2021 and the Government Response was published...Read more...

    Published: July 2021

  17. Source: committees.parliament.uk
    Link: https://committees.parliament.uk/oralevidence/16693/html/
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    Without that, you cannot have that licensing arrangement in...Read more...

  18. Source: publications.parliament.uk
    Title: uk Creator remuneration
    Link: https://publications.parliament.uk/pa/cm5804/cmselect/cmcumeds/156/report.html
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    remuneration - [Culture]({{ 'culture/' | relative_url }}), Media and Sport CommitteeApr 10, 2024 — Even as streaming depresses royalties and residuals, UK creators do not h...

  19. Source: hansard.parliament.uk
    Link: https://hansard.parliament.uk/commons/2025-07-22/debates/2AE64895-4624-4D42-ABD9-AEB41E257170/MusicStreamingLabel-LedPrinciples
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    Streaming: Label-led Principles - Hansard22 Jul 2025 — Our new music growth package will more than double Government funding for the indu...

  20. Source: GOV.UK
    Title: ernment secures label led measures to boost earnings for uk artists
    Link: https://www.gov.uk/government/news/government-secures-label-led-measures-to-boost-earnings-for-uk-artists
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    secures label-led measures to boost earnings...Jul 22, 2025 — The principles include a new framework for the renegotiation of contracts...

  21. Source: assets.publishing.service.gov.uk
    Title: publishing.service.gov.uk Music and streaming
    Link: https://assets.publishing.service.gov.uk/media/6384f43ee90e077898ccb48e/Music_and_streaming_final_report.pdf
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    right for artists to recapture the rights to their works after a period of time and the right to contract adjustment... rights on UK str...

  22. Source: assets.publishing.service.gov.uk
    Title: Creator Remuneration Working Group To R
    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...

  23. Source: tandfonline.com
    Link: https://www.tandfonline.com/doi/full/10.1080/09548963.2022.2156267
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    Taylor & Francis OnlineThe DCMS Committee's inquiry on the economics of music...by A White · 2023 · Cited by 7 — The introduction of a r...

  24. 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...

Additional References

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    Link: https://academic.oup.com/jiplp/advance-article/doi/10.1093/jiplp/jpag045/8661314?searchresult=1
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    OUP AcademicMusic recommender systems and the copyright blind spot4 days ago — Music recommender systems: Copyright law secures the lawfu...

  2. Source: ft.com
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    These measures aim to address income disparities for artists with pre-digital era record deals that did not account for streaming revenue...

  3. Source: musiciansunion.org.uk
    Link: https://musiciansunion.org.uk/news/government-gives-view-on-measures-to-fix-music-streaming
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    Government Gives View on Measures to Fix Music StreamingGovernment has responded to further recommendations from the Culture, Media and S...

  4. Source: medium.com
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    Regulatory Watch: Global Music AI Policy | by Myk EffThe European Union's AI Act, which came into force on August 1, 2024, introduces str...

    Published: August 1, 2024

  5. Source: reddit.com
    Link: https://www.reddit.com/r/musicindustry/comments/okppev/uk_governments_inquiry_into_music_streaming/
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    UK Government's inquiry into music [streaming revenues]({{ 'revenue-dbec50/' | relative_url }})...Songwriters and publishers need to be paid just as much as artists and record la...

  6. Source: musiciansunion.org.uk
    Link: https://musiciansunion.org.uk/news/competition-and-markets-authority-says-low-pay-from-music-streaming-not-a-competition-issue
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    Competition and Markets Authority Says Low Pay From...30 Nov 2022 — The Competition and Markets Authority (CMA) has found that low pay f...

  7. Source: musiciansunion.org.uk
    Link: https://musiciansunion.org.uk/news/fix-streaming-government-announces-equitable-remuneration-working-group-dominated-by-labels
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    Government Announces Equitable Remuneration Working...22 Feb 2024 — MU General Secretary Naomi Pohl evaluates why the newly announced eq...

  8. Source: musiciansunion.org.uk
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    Government Announces New Measures for Legacy Artists...Aug 1, 2025 — Government recently announced a package of principles and commitmen...

  9. Source: wiggin.co.uk
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    Helienne Lindvall: Secure authors' rights in the AI Act...20 Aug 2025 — The study also highlights that by 2028, AI-generated music will...

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