EU plans to drastically reform the music streaming industry

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The European Union (EU) is considering significant reforms to the music streaming industry to ensure fair compensation for artists and transparent revenue allocation. The music streaming industry has been a subject of intense scrutiny in the EU. The body has concerns about the fairness of compensation for artists and the transparency of revenue allocation. In response to these concerns, the EU is contemplating a series of reforms. These reforms aim to address these issues and create a more equitable environment for music creators. The EU announced today that the reforms will support small artists. This is to ensure that they get a fair deal for their hard work.

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Proposed Reforms

The European Parliament has been at the forefront of the push for reform. Today, a resolution was adopted by a significant majority of MEPs. They are calling for a review of the imbalance in revenue allocation from music streaming. The resolution reflects growing concerns about the current distribution of streaming revenues and its impact on artists. The EU said it needs to tackle the issue of underpaid artists head-on and avoid biases. The resolution points out that the EU currently has no specific laws and regulations about music streaming. It also noted that music streaming is one of the major ways of getting access to music today. Thus, the EU needs to have specific laws in this area.

The proposal aims to ensure the dissemination and exposure of European musical works and avoid being overwhelmed by the massive amount of new content. Lawmakers have called for a revision of outdated “pre-digital age” royalty rates. It points to schemes that force musicians to pay very little in exchange for exposure. The EU is considering introducing a European quota system for musical works to help boost the profile of local artists.

The new law will ensure streaming platforms disclose whether they use AI to create music. This will help to combat “deep fake” music that imitates well-known artists without due consent. It will also require transparency¬†about recommendation algorithms. This is to prevent large record brands and popular artists from obtaining skewed recommendations.¬†

Industry bodies roll out their recommendations

In addition to the parliamentary resolution, several industry bodies have put forward their recommendations for reform. The European Composer & Songwriter Alliance (ECSA) has published a report outlining six key recommendations. This includes the need for streaming subscription prices to keep up with inflation. It also recommends greater transparency around revenue allocation and measures to ensure the prominence and discoverability of European music.

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Similarly, the Independent Music Companies Association (IMPALA) has called for increased subscription prices. It also calls for bespoke deals for fans and a revaluation of the share for master rights. This is part of its proposals for a fairer and more dynamic streaming market. These proposals reflect a growing consensus within the industry that significant changes are needed to address the current imbalances in the streaming ecosystem.

Potential Impact

If implemented, these reforms could have far-reaching implications for the music streaming industry. Artists and music creators stand to benefit from a more equitable distribution of streaming revenues, ensuring that they are fairly compensated for their work. Greater transparency around revenue allocation and playlisting operations could also help to address concerns about the lack of visibility for European music on streaming platforms.

From a consumer perspective, the proposed reforms could lead to changes in the pricing and availability of streaming subscriptions. While increased subscription prices may be a concern for some, the potential benefits for artists and the overall music ecosystem are clear. Moreover, measures to ensure the prominence and discoverability of European music could lead to a more diverse and inclusive streaming environment for listeners.

In an EU press release, Rapporteur Ivan García del Blanco said:

‚ÄúThe European Parliament is speaking out for European musicians, who are an important pillar of the music streaming market. Cultural diversity and ensuring creators receive attribution and fair remuneration have always been our top priority. Therefore, we are demanding rules that ensure the algorithms and recommendation tools used by music streaming services, as well as the use of AI tools, are transparent and put European creators at the heart.‚ÄĚ

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The EU’s plans to reform the music streaming industry reflect a growing recognition of the need to address the imbalances and lack of transparency that have characterized the sector. By advocating for fair compensation for artists, transparent revenue allocation, and measures to promote European music, the proposed reforms have the potential to create a more equitable and vibrant streaming ecosystem for all stakeholders.¬†While lawmakers generally agreed the issues needed to be addressed, the resolution itself did not have the force of law.¬†It is more of a call for the European Commission to acknowledge the problems and initiate a legislative process for reform. This could take years to come into effect even if the call succeeds.

The EU’s efforts to reform the music streaming industry are a significant step towards addressing the longstanding concerns about the fairness and transparency of the sector. By heeding the recommendations of industry bodies and parliamentary resolutions, the EU has the opportunity to lead the way in creating a more equitable and sustainable streaming environment for artists, music creators, and consumers alike.

Author Bio

Efe Udin is a seasoned tech writer with over seven years of experience. He covers a wide range of topics in the tech industry from industry politics to mobile phone performance. From mobile phones to tablets, Efe has also kept a keen eye on the latest advancements and trends. He provides insightful analysis and reviews to inform and educate readers. Efe is very passionate about tech and covers interesting stories as well as offers solutions where possible.

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