A bill to reform musicians' rights to payment from streaming failed to progress in the House of Commons on Friday (3 December).
59 MPs voted against a second reading, with 28 voting in favour.
All 59 dissenting MPs were Conservatives despite 44 Tory MPs signing an open letter in October that asked Boris Johnson to “start paying musicians properly”.
Minister for Science, Research and Innovation George Freeman said the Government supports the DCMS Select Committee's recommendations and will work to ensure a "fair and vibrant digital creative inudstries and music sector".
Music Managers Forum Chief Executive Annabella Coldrick and Featured Artists Coalition CEO David Martin said even though the bill fell at the first hurdle, the trajectory towards eradicating "outdated industry practices" feels "unstoppable".
"The Government has delivered a very clear message to major labels, publishers and collecting societies: if you don't deliver change, then legislation cannot be ruled out."
BPI CEO Geoff Taylor said that although well-intentioned, the bill was not the right way forward for british music.
“We have listened to the arguments made across the debate and will engage positively and proactively with the process government has put in place to look for joint solutions to ensure the streaming market continues to grow and sustain the careers of many more artists.”