MEPs want algorithms for music streaming to be transparent
Digitalisation has changed the market for music . EU law should ensure that European works are visible and that algorithms used for streaming of music are transparent. The streaming platforms dominate the music market, yet no EU rules regulate them, the European Parliament’s committee for culture says in a statement.
The Committee calls for EU rules to ensure a fair and sustainable environment for music streaming and to promote cultural diversity.
In a resolution adopted by 23 votes to 3 and 1 abstentions, MEPs in the committee urge for imbalances in the sector to be addressed, as they currently leave a majority of authors receiving very low revenues.
“The “pre-digital royalty rates” currently applied must be revised”, they say, condemning the payola schemes that force authors to accept lower or no revenues in exchange for greater visibility.
The committee says the situation is aggravated by the decline in the overall value of music products, with revenues concentrated in the hands of major labels and the most popular artists, the rise of AI-generated content and, according to studies, streaming fraud (i.e. bots manipulating streaming figures), and manipulation and illegal use of music content by platform
The MEPs call for an EU bill to oblige platforms to make their algorithms and recommendation tools transparent and to guarantee that European works are visible and accessible. It should also include a diversity indicator to assess the array of genres and languages available and the presence of independent authors.
Rules should oblige streaming platforms to identify right-holders via the correct allocation of metadata to help their works to be discovered, as well as to prevent e.g. streaming frauds used to reduce costs and lower value. A label should inform the audiences about purely AI-generated works, they add.
The MEPs ask the EU to invest more in European music, including local and niche artists or artists from vulnerable communities to offer a more diverse repertoire, as well as to support authors in the digital transformation of their business models.
“The success story of music streaming services has its own paradoxes. The majority of authors and performers, even those with hundreds of thousands of reproductions each year, do not receive remuneration that allows them to afford a decent living”, says lead MEP Ibán García Del Blanco (S&D, ES).
“It is of paramount importance to recognise the role authors play in the music sector, review the revenue distribution model that streaming services use and explore proportionate and efficient solutions, to promote cultural diversity,”
The Plenary vote on the non-legislative resolution is scheduled for the January.
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