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Home , 2020 in British music, BBC Music Introducing, Brit Awards, Children (composition), Concert, Identified

Written evidence submitted by the BPI

BPI response to the Digital, Culture, Media and Sport Select Committee inquiry into public service

June 2020

Introduction

About the BPI

The BPI is the representative voice for the UK’s recorded industry, including the three major record labels (, 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 and the Mercury Music Prize, own 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 – 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 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 sector, including live music and festivals, recording studios, session players and .

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 and TV music events, from airing the 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 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 , 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 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 )  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 , 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. This work spans live and recorded work and work within programmes such as Strictly Come Dancing. As well as broadcasting its own orchestras the BBC provides coverage of many major classical events, including, of course, the Proms; and on Radio 3 extensive coverage of concerts and recorded work. This supports the creation of classical music and associated employment for classical musicians, and also provides a variety of ways in which to audiences - including those who may not ever otherwise engage in the genre

The BBC is also heavily involved in – as well as specific partnerships with BPI (see below), music features in various parts of the BBC’s education output, including the launch last year of Peter’s very first Music Badge.

Notwithstanding the above, the BPI believes that more could be done to more fully deliver on the commitment to music required by PSB when it comes to mainstream , and in particular as regards contemporary music. With the exception of seasons of “Later” on BBC 2, there is no regular music programming on one of the main PSB TV channels devoted to contemporary music. Rather, music artists typically feature only as small performance segments on general magazine or chat programmes such as Graham Norton, The One Show, Loose Women or . In 2017 and 2018, the BBC broadcast two series of a new contemporary music showcase “”. The BBC is to be applauded for its commitment in bringing this show to the screen, but it was shelved after two series since the ratings were not deemed to be high enough (although audiences typically ranged from 1.5m to 2.3m viewers). Moreover, the television coverage accorded to The Proms has declined in breadth and prominence in recent years, with more Proms covered on radio rather than on television, and little coverage on the primary channels BBC One and BBC Two.

BPI believes that the BBC in particular has a responsibility to showcase culture to the nation, consistent with its Reithian mission to “inform, educate and entertain”, and that its editorial decisions about programming should give significant weight to this factor, as well as to ratings. Given the BBC’s substantial licence fee funding, it should be expected to take editorial decisions that a commercial broadcaster might not make given their dependence on advertising revenues (and

therefore audience size). By way of further illustration, BPI has experienced real challenges in persuading BBC to schedule the Mercury Music Prize on one of its main two TV broadcast channels,

despite the fact that costs are shared with the BPI (which produces the event) and that the programme by definition features performances of the best British music of the year, as selected by a highly respected expert panel (including a number of BBC radio presenters). We believe that a programme of the very best British contemporary music of the year, which attracts substantial UK news coverage, should by definition be able to find a place on BBC One or Two. BPI is currently working collaboratively with the BBC team to try to achieve that positive outcome in 2020.

Finally, it is worth noting the importance of broadcast music as a source of revenue for the music industry, whereby royalties are paid when music is played on TV or radio. This is particularly important for independent labels which are more likely to have smaller rosters of artists, and therefore fewer opportunities for developing more revenue streams to facilitate artist development and re-investment in the business cycle.

Original content commissions

In addition, incidental music is an important contributor to music. The PSBs are major commissioners of original content – required to commission and broadcast specified amounts of UK- made TV content and (in the case of the BBC and Channel 4 film too). As such, the public service broadcasters are important ‘customers’ of music. This includes both the licensing of recorded music to use in productions, as well as original commissioned music.

BPI partnerships with public service broadcasters

In addition to the activities outlined above, the BPI has a number of more specific partnerships with the public service broadcasters. These include:

Mercury Prize: the BPI runs the Hyundai which recognizes the 12 best British and Irish of the Year. BBC is the official broadcast partner, with support on 6 Music and a slot on BBC 4. This broadcast support is welcome, though would benefit from greater profile and more extensive audience reach, especially in light of the quality and cultural significance of the shortlisted artists.

BRIT Awards: The BPI organizes the BRIT awards, which celebrate the best of British talent across a wide range of genres, celebrating solo artists, bands, single and albums. ITV has been broadcast partner since 2007, providing peak time coverage of this major music event in the calendar – showcasing British music at home and increasingly on a global , with the BRITS now an event that attracts a global audience.

Official Charts. The BBC is the exclusive broadcast licensee of the Official Singles Chart and Albums Chart from the , which is co-owned by BPI and the Retailers Association. As such, since 1967 the BBC has been the first place to hear the weekly new official charts, including the new No.1. This means that the BBC has been the chronicler and maintains an archive of the official history of British contemporary music. The absence of a charts-based TV show,

such as Top of the Pops (cancelled in 2006), or Sounds Like Friday Night, means that the BBC has lost its TV record of all the artists featuring in the charts. In terms of audiovisual content this has to

some extent been compensated for by R1 sessions on YouTube, and of course R1’s radio broadcasts provide it with an uninterrupted archive of more than 50 years of the history of UK . This is a partnership that is valuable to the BBC and the music industry alike.

Showcases: The BPI works with the BBC on international showcases in conjunction with the GREAT campaign and we have been discussing with the BBC how to develop this further in a more ambitious showcase programme in which BPI would partner with the BBC and Government to promote British artists and British culture overseas (see recommendations section below).

BBC Music Introducing: The BPI works with BBC Introducing at international events including SXSW in Austin, Texas, with the key aim to promote British talent; and BPI’s member labels work closely with the BBC Introducing team in talent development.

National Day: BBC Sounds partners with the BPI and others to give profile to this annual event celebrating the role of the album in popular culture.

BBC Education: BPI are an official partner to the “Bring The Noise” campaign, aimed at encouraging music engagement among primary school children.

Future priorities for music and public service broadcasting

As the above activities show there is a symbiotic relationship between music and public service broadcasting. Music is a vital part of the creative economy, as well as providing significant cultural and social benefits, including providing entertainment and supporting wellbeing. Support should continue for a strong and diverse public service broadcasting ecology. This should include ensuring that music continues to be a core part of the functions of PSB; that PSB remains sufficiently funded to continue to showcase and commission music; and that PSB remains universally available. This is particularly important for supporting the development of new UK talent and showcasing music that has the potential to underpin export growth.

Exports opportunity

The interplay between broadcast profile and export potential is particularly important – especially now as the UK looks to forge a new international standing and export strategy. British music already punches well above its weight globally – with one in nine albums sold globally in 2018 coming from a British artist. Indeed, in nine of the last fifteen years, the best-selling artist album in the world has come from a British artist, and in 2019, three of top ten best-selling artists and albums in the world came from British acts. According to Goldman Sachs the global streaming market has the potential to drive recorded music revenues to $45bn by 2030 and BPI estimates that the UK’s overseas income from recorded music could double to more than £1bn per annum in the same period. The role of PSBs in providing exposure and helping to build domestic fanbases, contributing to a strong pipeline

of exciting new domestic talent, is a fundamental element in UK’s labels’ ability to develop international music stars.

The BPI and BBC already work together on showcases to support exports and have been discussing a new partnership for an extended international showcase programme with UK Government to deliver on our joint ambition to grow the UK’s global music success. We would welcome the opportunity to discuss this vision more with the Committee outside the PSB Review Inquiry.

The BPI has identified a number of further specific priorities for how public service broadcasting might partner with and support music in :

Continued commitment of PSB to music

 The provision of music programming must remain a fundamental part of any future definition of the purposes of public service broadcasting. This should encompass a broad range of styles of music, formats, and be aimed at a mix of tastes and demographics.  Recognizing that the means of distribution may change over time (and may shift in some cases from broadcast uses to on-demand and streaming), PSBs should maintain or increase overall levels of content and investment in music.  While BBC radio provides strong music support, the BPI would be keen to see levels of TV / AV content increasing across TV stations and on demand services, and looking at how delivery of music content on digital services might make increasing levels of music output more viable, where coupled with a focus on maintaining investment and reach.  Indeed, in an increasingly digital world, the relationship between Public Service Broadcasters and music has even more potential. The development of the BBC Sounds app, for example, enables the BBC to focus on music mixes in a digital form, often promoting new British talent.  While radio/audio output provided by the BBC remains strong, TV content lags some way behind, with little, regular peak time programming on the main channels – the BBC and others should be encouraged to include contemporary music in their mainstream output. Insofar as television channels remain the most effective means of achieving significant reach and cultural impact, the most watched channels should play a part in this. Television can introduce audiences to an artist in a richer and more lasting manner than radio alone, since the visual aspects of an artist’s performances and identity are vital elements of their cultural impact. In addition to a regular TV format focused on contemporary or , we would welcome the Mercury Prize being given greater prominence in a slot on BBC One or Two rather than BBC 4.  While radio and music events feature music relatively strongly, the BPI would welcome more dedicated music programmes – particularly featuring new artists and music - on TV.  However, for PSB to continue to innovate and evolve, the manner in which music content is provided – i.e. on what platform – should be determined according to the ongoing reach of music to the population as a whole. As such, the BPI is in principle ‘platform neutral’ as long as the primary objective for core public service content remains that it achieves strong reach to the population and that where music content is played is primarily aimed at bringing the largest possible audience to it.  We recognize that in order to retain their relevance, this means that PSBs will need to move faster in innovating so as to provide their content to the public in new ways that meet consumer expectations (for example, in providing greater personalization and on-demand

functionality) and invest properly to acquire the necessary rights to make available content in that way. This could provide an opportunity for the BBC to offer a distinctive, public service “music discovery” online service focused on new British artists, leveraging its outstanding strength in context and editorial – but, critically, it must do so without undermining the arms’ length licensing of commercial services in that space.

Range of music output

 The definition of music for the purposes of public service broadcasting should be broad – encompassing both ‘high art’ and popular music, ensuring a range of tastes and interests are catered for and that PSB’s music coverage is dynamic and can move with .  PSB content should continue to reach as many people as possible; music within PSB output has benefited from being widely available and easy to find by audiences. This is partly because PSB channels are required to be available to all and have prominence afforded to them so that their services are at the top of traditional listing and programme guides. This helps ensure the reach of more music specific programmes, as well as supporting the business models that invest in original programming.  The BBC should play a vital role in playing a wide range of British music with the terms of its Charter and Agreement and accompanying Service Licences meaning that across its channels and stations, and within its radio schedules it is required to play a mix of genres, to target a wide range of demographics and ensure it is sufficiently distinctive to commercial radio.

Commissioning original content that reaches the whole population

 Commissioning original content should remain a priority for the public service broadcasters, supporting the continuation of licensing of recorded music for inclusion in TV and film, as well as composition.  In achieving the objectives of reach, public service content should remain free at the point of consumption for audiences – whether on radio, TV or online. The BPI therefore supports the current framework whereby one of the cornerstones of PSB content is that it is available free at the point of consumption to everyone. As such the BPI supports the continuation of the licence fee and measures to keep the PSB system strong to enable it to continue to support British music and artists. This should not however inhibit PSBs from making further value-added services available in addition to its core, free PSB services, on a PPV or subscription basis (for example Britbox) – and indeed, such services may help strengthen PSB and its ongoing partnership with music.