The code, albeit voluntary, has been developed and agreed by 12 music industry bodies representing music creators, record labels, publishers, digital service providers, distributors, and collecting societies.

It sets out agreed standards and practices in an attempt to build greater trust in music-maker contracts, streaming licensing deals, royalty payments, usage data, audit rights, and communication to music creators.

The government said that the code “will help build creators’ confidence that they are being paid correctly when their music is played via streaming services,” as well as improving “creators’ understanding of how their music is licensed, administered, and used.”

The code comes after a 2021 UK government inquiry into music streaming which highlighted that performers, songwriters, and composers receive “pitiful” returns from music streaming. MPs called on the government to introduce a right for musicians and creators to be equitably compensated for the streaming of their work and for a “reset” of the market.

The IPO is set to have oversight of the new code and its implementation, and will convene meetings of signatory organisations every six months to consider how it’s working, with a formal review of the code to take place in 2026. The code is set to come into force on 31 July 2024.

The Independent Society of Musicians, the Music Managers Forum, the Music Publishers Association, and the Musicians’ Union are those among the signatories.

Culture secretary Lucy Frazer said: “For decades the UK music industry has projected our soft power to the world. Our home-grown artists make awe-inspiring music that brings in billions of pounds to the economy.

“As technology continues to transform the industry, musicians must be entitled to a clear and simple way of understanding what they can expect to be paid from streaming royalties.

“I welcome the music industry working together on this, and look forward to this code being put into practice.”

Recommended reading

• Digital Sales Dominating UK Entertainment Industry
• 10 Black-Owned Tech Startups Leading Innovation in Digital Entertainment
• Scots Audio Tech Firm Secures New Funding, Appoints New Director

Phil Kear, the Musicians’ Union assistant general secretary, also commented: “It is encouraging to see progress on Government commitments following the revolutionary music streaming inquiry report, although it will take time to know if and how well the Code is working for our members.

“In the meantime, we are still waiting for the terms of reference for the working group looking at musicians and music creators’ earnings from music streaming.

“Equitable remuneration from music streaming is our priority and is fundamental if the Government is serious about fixing streaming.”