March 25, 2019

The Committee concluded that the music industry is facing “stark challenges”. The Chair, Damian Collins MP, said that: “Bad experiences with ticket resale platforms are damaging trust in the industry, smaller music venues are closing at an unprecedented rate, and the future of the talent pipeline is at risk”.

The Committee calls on the Government to review the effectiveness of the law intended to “prevent consumers being ripped off when buying tickets for live concerts”.

Mr Collins also said: “Urgent action is needed if the live music industry is to continue to make a significant contribution to both the economy and cultural life of the country. We also look to the music industry to make sure that enough of the big money generated at the top finds its way down to grassroots level to support emerging talent. It happens with sport, why not music?”

The Report notes significant progress by enforcement agencies in bringing a number of secondary resale platforms into line with consumer law following action by the Competition and Markets Authority and the Advertising Standards Agency, as well as changes made within the industry itself to limit the resale of tickets for profit.

The Committee recommends giving fans a quicker and easier process to resolve secondary ticketing disputes because poor experiences risk blighting people’s enjoyment of live music and drain money out of the industry.

The Report questions the effectiveness of legislation intended to block the use of bots to harvest tickets on primary websites and the failure to tackle other means used by ticket touts such as multiple purchases. The Government should set out how it intends to review the effectiveness of the Breaching of Limits on Ticket Sales Regulations 2018 and publish a review of the regulations.

The Committee says that measures by Google to increase transparency around secondary ticket selling are welcomed, however it notes that Google has repeatedly allowed tickets to be sold in breach of UK consumer protection law. The Committee calls on the Government to set out the responsibilities of companies such as Google to ensure that advertisements comply with consumer protection law.

The Report also uncovered evidence of persisting prejudice against urban music and grime artists, risking the future of “one of the UK’s most exciting musical exports”.

The Committee calls for cross-departmental action by Government to develop guidance for licensing authorities, police forces and music venues on risk management to ensure that urban music acts are not unfairly targeted.

As for live music venues, the Report notes that in the past decade the UK has seen the closures of music venues nationwide, while sites that remain face a struggle to stay open given rising costs and declining revenues. Unsubsidised, small and medium-scale venues face particular problems attributed to rising rents and business rates and stagnating incomes.

The Report finds that the Government has failed to act promptly to stem the tide of the closures happening on a scale unprecedented in other cultural sectors, a development that presents a significant and urgent challenge to the music industry. Evidence suggests that the UK’s position at the forefront of the music industry could be at risk because the next generation of musicians will be denied spaces to hone their live craft.

The Report says that the Government should immediately review the impact of recent business rates changes on the live music sector and introduce new or extend existing relief schemes such as those for pubs or small retail properties to lessen the burden of business rates on music venues in order to protect grassroots venues and independent festivals.

Further support should be given by the Government by extending tax relief, already given for orchestra performances, to other forms of music production.

As for future talent, the Report calls on the Government to set up a taskforce to examine how the music industry may be supported and incentivised to invest more effectively in supporting grassroots talent. “The music industry should ensure that a greater proportion of its revenues is channelled into supporting artists at the early stages of their careers” it says. To read the Select Committee’s news release in full and to access the Report, click here.