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Cultural diversity and the conditions for authors in the European music streaming market

TA-9-2024-0020 · P9_TA(2024)0020 · PE750.068

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Parliament's resolution on cultural diversity and the conditions for authors in the European music streaming market sets out what it wants done about fair pay, transparency and the visibility of European music. It asks the Commission to assess contractual practices and revenue distribution, to explore fairer models of allocating streaming revenue, and to examine concentration in the music industry. It calls for better identification of authors and performers through accurate metadata and international identification codes, and for collective management and revised royalty rates. It wants a legal framework to ensure the visibility, accessibility and prominence of European musical works, with diversity indicators and possible quotas. It calls for the ethical use of artificial intelligence, transparency of algorithms and recommendation systems, labelling of purely AI-generated works, and action on deepfakes. It asks the Commission to set up a European music observatory, improve the Creative Europe programme, develop an export strategy and consider a European industrial strategy for music.

Key points

  1. Parliament stresses the need for rules ensuring a fair and sustainable music streaming ecosystem that promotes cultural diversity and addresses imbalances affecting authors and performers.
  2. It says all actors in the music streaming value chain must engage in effective dialogue, including authors and performers, to ensure a fair, inclusive and sustainable ecosystem.
  3. It notes with concern that current revenue allocation disfavours authors and performers and welcomes efforts towards fairer remuneration.
  4. It calls on the Commission to assess contractual practices and revenue distribution models, explore fairer models to reallocate streaming revenues, and examine concentration in the music industry.
  5. It urges stakeholders to overcome imbalances and asks the Commission to monitor progress and consider policy proposals if voluntary initiatives fail.
  6. It calls for greater visibility of authors, a more balanced distribution of streaming revenues, and new models for allocating revenue.
  7. It encourages the Commission to evaluate new technologies such as blockchain and international identification codes to improve transparency and metadata accuracy.
  8. It underlines the importance of authors joining collective management organisations and recalls Directive 2014/26/EU on online multi-territorial licensing.
  9. It calls for comprehensive and accurate metadata allocation from creation, using all international identification codes (IPI, ISWC, ISRC, IPN and ISNI).
  10. It calls for the revision of pre-digital royalty rates and condemns payola schemes that force authors to accept lower or no revenue for visibility.
  11. It calls for a legal framework to ensure the visibility, accessibility and prominence of European musical works, including diversity indicators and possible quotas.
  12. It calls for the ethical use of AI, transparency of algorithms and recommendation systems, labelling of purely AI-generated works, and action on deepfakes.

Who is affected

  • Authors, composers, songwriters and performers, who should receive fairer remuneration and better identification.
  • Music streaming platforms, which should improve transparency, metadata and algorithm accountability.
  • The Commission, which is asked to assess, monitor, propose measures and set up a music observatory.
  • Member states, which are asked to assess ways to preserve digital European musical heritage.
  • The music sector as a whole, including independent producers and small players, which should benefit from a fairer ecosystem.

Figures and deadlines

  • Streaming represents 67 % of the music sector's global revenue.
  • The global music sector reached annual revenue of USD 22,6 billion in 2022.
  • Up to 100 million tracks are available on streaming services.

Legal basis: Article 167 of the Treaty on the Functioning of the European Union