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EU parliament wants legal framework for streaming music industry and European quotas

The European Union needs a legal framework to make the music streaming sector fair and sustainable, and to promote cultural diversity. In a resolution adopted by 532 votes to 61 and 33 abstentions, the parliament says the imbalance in revenue allocation from the music streaming must be addressed, as it today leaves a majority of authors and performers with very low compensation. The parliament also says that quotas for European music should be considered. 

The US has the world’s largest music industry and statistics, 4 years old but anyway, shows that 70% of the songs on Spotify’s Global Top 50 playlist were recorded by US-based artists, according to music identifying Matching Engine.

Digital music platforms and music sharing services currently provide access to up to 100 million tracks either for free or for a subscription fee. Streaming represents 67% of the music sector’s global revenue, with an annual revenue of 22.6 billion USD, according to statistics quoted by the parliament.

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EU action is needed to guarantee European musical works are visible, prominent and accessible, among the “overwhelming amount” of constantly growing content on music streaming platforms, says the text. MEPs propose to “reflect on the possibility” of imposing concrete measures, such as quotas for European musical works, the resolution says.

“The EU bill should oblige platforms to make their algorithms and recommendation tools transparent, to prevent unfair practices, such as manipulation of streaming figures, allegedly used to reduce artists’ fees.”

The resolution wants a label to inform the public when the songs have been generated by artificial intelligence.

Deepfakes on music streaming platforms (that use identities, voices and likenesses of authors without their consent) must be tackled, the resolution says.

“The rules should also oblige streaming platforms to identify right-holders by correctly allocating metadata to make their works more visible.”

The MEPs point to studies indicating that revenues in the streaming market go primarily to major labels and a few most popular artists, while the less popular styles and less common languages are played less frequently. 

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“EU legislation should include diversity indicators to assess the array of genres and languages available and the presence of independent authors, and a European industrial strategy for music should promote the diversity of the European music sector, boosting smaller players.”

Digital music platforms and music sharing services currently provide access to up to 100 million tracks either for free or for a subscription fee. Streaming represents 67% of the music sector’s global revenue, with an annual revenue of 22.6 billion USD.

 

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