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Written Evidence Submitted by the BPI Introduction

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Written Evidence Submitted by the BPI Introduction Written evidence submitted by the BPI BPI response to the Digital, Culture, Media and Sport Select Committee inquiry into public service broadcasting June 2020 Introduction About the BPI The BPI is the representative voice for the UK’s recorded music industry, including the three major record labels (Sony Music, Warner Music and Universal) and around 450 small, independent labels. Our members account for more than 85% of all recorded music consumed in the UK. We organise the BRIT Awards and the Mercury Music Prize, own the Official Chart and through our charity, the BRIT Trust, support a range of music related charities and organisations, with the biggest benefactor being the BRIT School, a state school in Croydon focusing on music and the performing arts. The BPI is part of the extraordinarily successful British music industry – worth £5.2 billion to the UK economy, as well as giving the UK enviable ‘soft power’ around the world. Until COVID-19, the recorded music sector had experienced five years of successive growth, and 7.3% growth in 2019 alone, generating trade revenues of over £1bn, plus overseas export earnings of around £500 million. The success of the recorded music sector is vital for the broader music industry. After a number of very difficult years for the recorded business, the recovery in revenues over the last five years means that we are on a path to recapture and possibly surpass the levels of income achieved before digital disruption. This means we can invest more to unearth and develop new British talent which, although it remains a high risk process, builds the fan-bases and artist brands that then generate revenues for the rest of the music sector, including live music and festivals, recording studios, session players and orchestras. The role of music as a source of enjoyment, companionship and solace has become even clearer than ever during the course of the Covid-19 pandemic. While physical music sales have been severely impacted, music listening has increased on streaming services: overall listening levels are up over 20% and online communities have formed for fans to meet and enjoy music together. Music fans and artists have led this on social platforms. Captain Tom became a chart phenomenon, and the BBC has responded with numerous radio and TV music events, from airing the One World concert on BBC1 to radio specials across various stations and genres. That music forms such an important part of people’s lives shows the enduring importance of music as an element of PSB output. This submission considers the relationship between the UK music industry and public service broadcasting (PSB), focusing particularly on recorded music, with an emphasis on the role of the BBC as the leading PSB provider of dedicated music coverage. Music and Public Service Broadcasting Public service broadcasting and music share similar characteristics, both providing a form of ‘social glue’ that connects communities, reflects diversity and represents the UK’s world-leading creativity. So music and PSB have enjoyed a close and fruitful association over many decades – dating back to the very early days of PSB – in which music has enriched the output of the broadcasters; and public service broadcasting has provided an important channel for the distribution of music and musicians’ work. As with TV, British audiences spend considerable amounts of time engaging with broadcasting and music - 77% of the British public spend over 2.5 hours listening to music in a typical week, which includes music in broadcast form. Music as a defined part of PSB Music forms a key part of the ‘purposes’ of public service broadcasting as defined by Parliament and enshrined in statute. These were articulated in the 2003 Communications Act to form the basis of the requirements of for the UK’s public service broadcasters and specify: that cultural activity in the United Kingdom, and its diversity, are reflected, supported and stimulated by the representation in those services (taken together) of drama, comedy and music, by the inclusion of feature films in those services and by the treatment of other visual and performing arts1; that those services (taken together) include what appears to OFCOM to be a sufficient quantity of programmes that reflect the lives and concerns of different communities and cultural interests and traditions within the United Kingdom, and locally in different parts of the United Kingdom; While this latter point does not relate specifically to music, music is one of the most powerful ways in which different cultures are represented, whether reflecting a range of diverse music cultures or appealing to different demographics. Music can therefore play a powerful role in how PSBs can fulfil this mission. Beyond these broad purposes, the BBC in particular is required to include music within its services, as specified in its Service Licence agreement with Ofcom. This includes identification of music as a potentially ‘at risk’ genre that the BBC must have regard to: “…identified as at risk or in decline across public service broadcasting, including: music, arts, religion, comedy and children’s programming”. Furthermore, the BBC has commitments to “new and UK music broadcast in Daytime on Radio 1 and Radio 2”…. the level of new music on BBC 6 Music; new music and music from UK artists during Daytime on 1Xtra; new and UK music during Daytime on the BBC Asian Network”; and “On its radio services, the BBC should ensure its portfolio of stations offer the broadest variety of output and that the range of musical output on its popular radio services is broader than that of comparable providers”2. 1 Communications Act, 2003, s 264 2 Ofcom Operating licence for the BBC’s UK Public Services, 2017 Music content provided by PSBs The UK’s public service broadcasters – defined as the BBC, ITV, Channel 4, Channel 5 and broadcasters in the devolved nations – feature music in various ways in their output, including: Public service broadcasters provide dedicated music coverage in a range of ways: The BBC’s dedicated music radio stations, covering a breadth of genres for different audience demographics The national networks are important, alongside the regional and local stations which also include music and are complementary to commercial stations. Dedicated coverage of music events across different types and genres, such as the BBC’s coverage of major music events (including the Proms and Glastonbury) and ITV’s coverage of the BRIT Awards (more below) Staging and broadcast of BBC-branded live events, such as BBC1’s Big Weekend, Radio 2 in Hyde Park, Proms in the Park Coverage of music awards, such as the BBC’s coverage of the Mercury Music Prize and ITV’s coverage of the BRIT Awards Music programmes, such as Later with Jools Holland (although these have reduced in number in recent years, alongside the demise of Top of the Pops) Music featured in chat and magazine style programmes, such as Graham Norton, The One Show, etc Supporting new artists and unsigned talent through the brands such as BBC Music Introducing. Some Music programming on 4 Music, part of Channel 4’s portfolio of channels The BBC is a fundamentally important part of the ecosystem for British music, and for the UK creative industries as a whole. The availability of a range of different services provided by the BBC is a crucial part of that process that leads to the phenomenal success of the UK in music and in the creative industries as a whole. The BBC plays a particularly important role in supporting recorded music, across its TV and radio output. Over the past five years, the BBC 570,900 different recordings have been used across BBC TV and Radio3. Its radio network reaches 34 million4 people each week. The suite of radio stations, taken together, provide for a mix of tastes and views, expose listeners to new music and give the opportunity for music to find mass audiences and target specific genres of interest. The BBC radio stations serve distinctive audiences and provide a very different range of programming to commercial radio stations. BBC Radio – and its commitments in relation to new artists and music - remains hugely influential in how audiences discover new music. Despite the rise of streaming in recent years, for 52% of consumers radio is the main way they discover music (53% for streamers). Hearing music on TV, film and games is also important – with 29% saying this is how they discover music5. 3 PPL supplied data 4 BBC supplied data 5 MIDIA report Music Marketing, Niche is the New Mainstream, May 2019 The fact that the BBC is required to – and does – give airtime to new British artists and songs, is key to supporting the development of new talent and supporting the export potential of British music around the world. For example in terms of contemporary music: In 2019 18,000 different tracks were played on 6 Music; 11,000 on Radio 1 (this compares to c. 2000 on commercial stations) BBC analysis of Radio 1, Radio 1 Xtra , Radio 2 and 6 Music (and sample of commercial stations) found that 2,300 new UK songs were given at least five station plays in 2019, with Radio 1 supporting more than 1000; 79% of the new UK songs supported by Radio 1 were from new or emerging artists. The BBC also performs a pivotal role in supporting classical music, which forms part of the repertoire of many of the BPI’s members. The BBC’s activities here include the BBC running five orchestras, which employ over 400 musicians – make the BBC the biggest employer of orchestral musicians in the UK.
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