MPs heard from musicians including Chic's Nile Rodgers and saxophonist Soweto Kinch, as well as music managers Maria Forte and Kwame Kwaten.
Rodgers said he hadn't looked into his streaming income before the Covid-19 pandemic "because my tour revenue has been so substantial that I could support my entire organisation".
The guitarist and producer said record labels retain up to 82% of the royalties they receive from streaming services like Spotify, Apple Music and Amazon Music, calling the system "just ridiculous".
Currently, each play of a song is counted as a sale, which gives labels the lions' share of the income, he said.
But Rodgers went on to argue that a stream was more like a radio broadcast, or a licence of the original recording, which would give artists about 50% of the royalties.
"Labels have unilaterally decided that a stream is considered a sale because it maximises their profits," he said. "Artists and songwriters need to update clauses in their contracts to reflect the true nature of how their songs are being consumed - which is via a licence. It is something that people are borrowing from [the streaming services]".
Whoa...that explains a lot - Sales vs Licence. Fair enough the artists entered into a contract, but was it explicitly stated (and they were clearly aware of the difference between a sale and licence?).
*And yes, I found a way to bring Funkmeister Rodgers into a post. Again :grin: