EU PARLIAMENT TO ADDRESS "UNFAIR" STREAMING MARKET

The European Parliament has called for the “imbalance” in revenue allocation from music streaming to be addressed by a new legal framework.

The proposed framework is designed to ensure the music streaming sector is fair and sustainable, and to promote cultural diversity.

In a resolution adopted by 532-61 with 33 abstentions, MEPs agreed that the current streaming market leaves a majority of author and performers with very low compensation. Currently, no European Union rules apply to the music streaming market.

The main points to be addressed through the proposed framework are:

• The revision of “pre-digital royalty rates” and “payola schemes” that “force” authors to accept lower or no revenues in exchange for greater visibility.
• Action to guarantee that European musical works are visible, prominent and accessible, among the “overwhelming” amount of content on music streaming platforms. This could mean quotas.
• Platforms to make their algorithms and recommendation tools transparent to prevent unfair practices, such as manipulation of streaming figures, which are allegedly used to reduce artists’ fees. MEPs suggest introducing a label to inform the public when songs have been generated by AI. They also say that streaming platforms should be obliged to correctly allocate metadata to make works more visible.
• Legislation could include diversity indicators to assess an array of genres and languages and the presence of independent authors.

Helen Smith, executive chair of European independent music company org IMPALA, welcomed the recommendations, while criticizing the notion of “equitable remuneration,” as discussed in various countries and implemented in Belgium.

“Modern digital rates, together with increased subscription prices and fairer allocation of revenues, are the way forward, not so-called new ‘equitable remuneration’ rights which some parts of the sector are calling for that we consider would reduce capital for investment in new artists and certainly not result in greater pay-outs to artists," Smith said.