The framework tackles unfair revenue distribution, limited visibility for emerging artists, and inadequate AI regulation in the music industry.
Photo credit: Guillaume Périgois on Unsplash
The European Parliament has voted in favor of a new legal framework to ensure fair payment for musicians from streaming platforms. The vote, which took place on January 17th, 2024 received overwhelming support. This addresses the need for regulation in the streaming sector and aims to provide transparency and visibility for artists.
Currently, streaming platforms lack specific laws or regulations in the European Union. Streaming represents a significant portion of the music sector’s revenue, generating billions of dollars annually. MEPs have identified three key issues: unfair revenue distribution, limited visibility for emerging artists, and a lack of regulation surrounding AI in the music industry.
To address these issues, the proposed legal framework aims to reform royalty rates, implement quotas for European work, and require transparency regarding the use of AI in music creation.
Spanish MEP Ibán García del Blanco emphasized the Parliament’s commitment to addressing the concerns of European creators. The proposed rules aim to ensure transparency in algorithms and recommendation tools used by streaming services, as well as in the use of AI tools.
While this framework is non-legislative and non-binding, it serves as an appeal to the European Commission to implement regulations for streaming platforms, fostering a fairer and more diverse music streaming sector.
