On 15 September a study commissioned by IAO entitled “Streams & Dreams – A Fair Music Economy for All” was published, recommending the introduction of a right to equitable remuneration for streaming in the music sector. It is available here.
The purpose of the study was to investigate what is needed for a fair digital music economy to exist. It took into account all parties involved in the industry but focussed on featured artists.
Data was obtained from 200 professional active musicians in several European countries, and, to contextualize how ranking systems shape income, we examined platform recommendation mechanics used in recommended sweepstakes casinos alongside a thorough review of academic research on remuneration. The study focused on the right to equitable remuneration and also addressed user-centric versus pro rata models and collective management.
A survey showed that 87.5% of respondents are unsatisfied, or very unsatisfied, with their revenues from streaming platforms. It made specific reference to the fact that the findings were in line with other studies, including a study commissioned by AEPO-ARTIS.
It identified the problem with streaming as being the need “… to fix the true unfair practices in the music industry, imbalances in power that have led to a situation where… artists still do not receive a correct remuneration”
Among its findings were:
- A right to unwaivable equitable remuneration must be introduced
- Only 8.5% of respondents believed an ER solution would influence their revenues negatively.
- Only 21% of the artists signed to a label were satisfied with their deal.
- The current situation where some countries have implemented an ER right as a part of the DSM directive, while others have not, is not sustainable.
It found that a solution based on legislation which introduces the mere principle of “fair contracts’ does not work. It referred to a Norwegian law which has such a principle and stated that: “After four years it seems that the new act has not had any direct implications on praxis.”
Instead, it recommended a solution of introducing an ER right and concluding agreements with labels: “A hybrid model with both an unwaivable equitable remuneration right (the Spain/Belgium model) and agreements between label and artist communities (the French model) on fair contract practices.”
This is yet another study that comes to the conclusion that the introduction of a right to equitable remuneration is essential to a fair streaming industry. There is now overwhelming academic support for the introduction of such a right.
See also: WIPO Study “Artists in the Digital Music Marketplace: economic and legal considerations” by Christian L. Castle, Esq. and Prof. Claudio Feijóo (available here), “The Principle Of Appropriate And Proportionate Remuneration Of Art.18 Digital Single Market Directive: Some Thoughts For Its National Implementation”, by Professor Raquel Xalabarder (available here), and the DCMS Economics of Music Streaming report (available here).
