The European Parliament has called for EU rules to ensure the music streaming sector is fair and sustainable, and promotes cultural diversity.
In a resolution adopted by 532 votes to 61 and 33 abstentions, MEPs ask for the imbalance in revenue allocation from the music streaming market to be addressed, as it currently leaves a majority of songwriters and performers with very low compensation. They insist on a new EU legal framework for the sector, for which currently no European Union rules apply, even though streaming services are the main way that people access music.
Despite the massive consumption of music online, the availability of more than 100 million tracks on streaming platforms and the exponential growth of music streaming on pure-play, social media or user-uploaded content platforms, the market leads to precariousness for most music creators instead of providing them with fair remuneration through which to build a sustainable career. The report highlights the current imbalances in revenue allocation, the insufficient growth of the overall revenue pie, fraudulent and unfair practices in the market that disfavour creators, and the imminent threat to cultural diversity deriving from harmful streaming manipulation practices and the proliferation of AI-generated content. The report suggests initiatives at Union level, calling on the Commission to propose legal provisions to ensure the transparency of the algorithms and content recommendation systems of streaming platforms, as well as positive obligations to assess and ensure the visibility and discoverability of European works.
IMRO Chairperson, Eleanor McEvoy said “The European Parliament’s Music Streaming report underlines the importance of songwriters becoming members of CMO’s which are crucial for the effective management of repertoires on streaming platforms. CMO’s are formed by music creators and work to ensure appropriate remuneration, cultural diversity and equal access to the music market.”
GESAC, representing 32 European authors’ societies (CMOs) and over one million authors in diverse artistic fields such as music, audiovisual, visual, literary, and dramatic arts, enthusiastically added their support to the European Parliament’s strong commitment to addressing creators’ concerns.
GESAC President Gernot Graninger said: “By adopting the report on the Music Streaming Market the European Parliament sends a strong signal of recognition and understanding of the needs of creators. The issue of fair remuneration in the streaming market needs to be resolved – not only for the benefit of the creators but also for culture to remain a significant driver of the European economy.”
GESAC General Manager Véronique Desbrosses said: “We congratulate the Rapporteur MEP Ibán García del Blanco for concluding this highly anticipated report with great success, and warmly thank all the MEPs who worked on the file and adopted it with a vast majority. The European Parliament clearly stands on the side of authors by showing its support to their legitimate request for fairness. The music streaming market needs to properly reward those who are at the core of its success and reach the high standards of cultural diversity that Europe expects. It is now the time for action at Union level and we count on the European Commission to take the next step and table the needed legislative proposals.”
