EU demands that music streaming services compensate artists more

New rules are being demanded by the European Parliament to guarantee that streaming providers compensate artists equitably. Additionally, the plan demands greater openness on the algorithms that recommend which musicians to stream, and which songs receive the most attention.

The intended adjustments are intended to guarantee that lesser-known artists receive equitable compensation. The way royalty rates are now set forces artists to accept less money for the distribution of their work in return for having it appear on streaming services like Apple Music and Spotify. The primary focus of European Parliament (MEP) members is the introduction of new legal frameworks aimed at providing support to artists.

MEPs think that the royalties are currently being allocated in an unjust manner. The way that recommendations are now generated by computers favors well-known labels and musicians, which makes it harder for obscure and diverse genres to get recognition. “We prioritize cultural diversity and author credit and fair compensation, which is why we request regulations that guarantee the transparency of algorithms and recommendation systems used by music streaming services, along with their use of artificial intelligence (AI) tools, putting European authors front and center,” stated Spanish rapporteur Ibán García del Blanco.

The MEPs demand stricter regulation surrounding the use of artificial intelligence as part of their call for change. It may take some time for EU regulators to really put a legal framework into place. In a similar vein, UK regulators began looking at the impact of algorithms on listening habits and brought up the issue of pay equity on streaming apps. It’s no secret that over half of the money made by the music industry comes from streaming services. Globally, streaming accounts for roughly 67% of the music industry’s earnings.