The UK parliament’s cross-party Culture, Media and Sport (CMS) committee has backed the establishment of a ‘freelancers’ commissioner’ to represent workers in the creative industries, including the film and TV sectors.
In its Creator Remuneration report, published today (April 10), the committee states that freelancers’ pay and working conditions are in decline because they lack a single voice representing their interests to government, and they have historically lost out on major policy initiatives from government interventions and support.
“We recommend that the Government appoint a Freelancers’ Commissioner with appropriate powers and cross-departmental oversight to advocate in the interests of creative freelancers and address wider issues around contracts and working conditions,” it stated.
Committee chair Caroline Dinenage said: “If creators are no longer to be the poor relations, the government needs to play catch up by plugging the gaps in outdated copyright and intellectual property regulations and ensuring that there is a champion for the rights of freelancers, who make such a vital contribution to their industries.”
Directors UK backed the call, with chief executive Andy Harrower stating: “Having someone advocate across government in the interest of creative freelancers is a step towards accountability and away from the poor working conditions and unfair practices our members face.”
The report notes that others in the creative sector have already called for the advocate role to be set up to support the workforce, with the idea previously being endorsed by the all-party parliamentary group for creative diversity, following the 2021 Creative Majority report.
Commissioner-style roles exist within government in various forms, including individuals and bodies lobbying for underrepresented groups, but industry voices who contributed to the research in the new report agreed the main remit of such a role would be to provide advocacy and expert knowledge of how the freelance sector intersects with the creative industries within government.
Some also suggested a commissioner should be given policymaking oversight and intervention powers in areas where freelancers are affected, such as pay, taxation and benefits, and employment rights.
In addition to creating the role, the committee also urges the government to implement the Department for Culture, Media and Sport-sponsored Good Work Review to address the poor working conditions experienced by many creators, including inconsistent use of contracts, uneven responses to bullying, harassment and discrimination and a lack of proper support, training and development.
Royalties and residuals
The report also addresses the “persistent declines” in royalties or residuals (as they are known when paid to cast and crew of TV and film productions) as a result of the rise of streaming, which means film and TV productions are “exploited more widely and for longer”.
Most professional UK film and TV directors only make between £1,000-£3,000 per year in royalties, with the report suggesting a key reason for this is the way streaming services negotiate with directors at the start of production.
Harrower noted that “at the point when you sign your employment contract, you […] assign that copyright to the production company, either for nothing or for a buyout of that right—how can you possibly know at that stage what value or how successful that programme will go on to be?”
A further key problem the report raises is the fact that UK creators – unlike those in 45 other countries - do not have the right to remuneration for private copying, whereby individuals can use digital devices to download, copy and share content.
The report also recommends the government works with the creative industries to introduce a statutory private copying scheme within the next 12 months, which, at minimum, safeguards reciprocal payments from abroad.
Currently, it revealed, payments from other countries may be lost due to a lack of reciprocity with the UK, with some countries specifically prohibiting payments in countries where there are no statutory private copying schemes.
The committee launched its inquiry into creator renumeration in autumn 2023, and collected evidence through a series of sessions with academics and advocacy bodies.
A group of UK bodies across the creative industries has developed a proposal for a statutory mechanism called the Smart Fund, to be produced in the next 12 months. It will ensure creators and performers are paid fairly for their work when it is accessed, distributed, and stored on digital devices. It does this using a small percentage from sales of electronic devices which enable copying and storing creative content. Similar schemes run in countries including Canada, Japan, France, Germany, Spain.
This would providing a new, additional domestic revenue stream, which advocates estimate will generate between £250–300m per year, without cost to government or consumers.
Harrower said: “For the committee to recognise the importance of fair remuneration for the use of directors’ work, and set a 12 month timeline on the fund’s implementation, is recognition of the contribution directors make to our economy…There can be no excuses for these recommendations not to become reality. We will hold the government to this.”
On the issue of compensation for use of creatives’ work with regards to artificial intelligence (AI), the report stated: “We are particularly disappointed that the Government’s working group on AI and intellectual property has failed to come to an agreement between the creative industries and AI developers on creators’ consent and compensation regarding the use of their works to train AI. We call on the Government to ensure that creators have proper mechanisms to enforce their consent and receive fair compensation when their works are used by AI systems.”
An original version of this story appeared on our sister site Broadcast. Additional reporting by Mona Tabbara
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