In response to strong outcry from artists, the music industry has publicly stated its intention to enhance the metadata used for monitoring tracks on music streaming sites.
Songwriters, performers, and producers will now always be credited for their contributions.
When their songs are played on streaming platforms like Spotify and Apple Music, the producers of these songs claim that they do not receive the royalties that are due to them.
It comes at the same time as the government is establishing a group to investigate these concerns.
The minister for the creative industries, Sir John Whittingdale, stated that the measure would assist the United Kingdom in “offering viable career opportunities.”
“This landmark agreement on streaming metadata is a step towards ensuring that UK musicians in the digital age are fairly credited and compensated for their contributions and creativity,” he said. “This agreement is a step towards ensuring that UK musicians are fairly credited and compensated for their contributions and creativity.”
It gives me great pleasure to convene members of the industry in order that we may investigate bigger concerns regarding the payment of music creators in general.
Obtaining payment for listening to music online
Since 2019, the government has been conducting an investigation into music streaming, and in 2021, they discovered a “imbalance” in the royalties. It has established a working group whose sole mission is to investigate the various ways in which artists get paid.
It was a “welcome step towards addressing the frustrations of musicians and songwriters whose pay falls far short of a fair level,” according to Dame Caroline Dinenage, who chairs the Culture, Media, and Sport (DCMS) Select Committee, which is studying the business.
She went on to say that it shouldn’t only be a “talking shop” but should produce actual changes in the world.
Nile Rodgers, a musician who is known for his work as a guitarist, producer, and composer, testified in front of the government in the year 2020 and stated that record companies keep up to 82% of the royalties that they earn from streaming services.
Chief Executive Officer of the British Phonographic Industry Sophie Jones expressed concern that it could hinder investment at a time when there was the possibility of growing competition from artificial intelligence.
According to what she told the Press Association, “numerous studies have demonstrated that streaming has benefitted consumers and artists alike,” and “record labels are paying more to artists than they ever have before.”
“My money, my music,”
According to Will Page, who used to work as the head economist for Spotify, the music industry is now arguing how money is distributed: “For artists, if you get 1% of all the streams in Britain… you get 1% of all the cash generated in Britain.”
This is due to the fact that musicians do not receive a predetermined amount of money each time one of their songs is played on Spotify.
According to the company’s official website, “Royalty payments that artists receive might vary depending on differences in how their music is streamed or the agreements they have with labels or distributors.”
Mr. Page brought up an alternate model, a payment system that is centered on the user, which some people believe may be more equitable. According to him, this would entail “ring-fencing” a person’s monthly fee to the music that they listen to, so transforming it into “my money, my music.”
Because of this, the monthly subscription cost that a person pays would be distributed among the musicians or bands that they listen to.
However, he did express some reservations regarding the efficacy of this working group, stating, “We’ve had a three-year-long DCMS Select Committee inquiry, which had countless verbal hearings, written submissions, and PDF reports – and we’re doing it again.”