The European Parliament advocates for authors and diversity on music streaming platforms

According to the European legislative body, streaming platforms wield significant influence in the music industry. However, the absence of European regulations raises concerns about fairness in revenue distribution and algorithm transparency.

A call to action

Through a resolution passed last November, with 23 votes in favor, members of the European Parliament (MEPs) affiliated to the Culture and Education Committee have called for measures to safeguard the interests of European authors and promote diversity on streaming platforms. This response addresses growing concerns within the European Union.

The plenary vote on the non-legislative resolution was scheduled for this January session in Strasbourg, where it was adopted by 532 votes to 61 and 33 abstentions.

The urgent need for regulation

MEPs highlight a significant gap: despite the market power of these platforms, the sector lacks specific regulations at the European level. This leads to various challenges, exacerbated by the devaluation of musical products, with revenue concentrated in the hands of major labels and popular artists. Additionally, challenges include the rise of AI-generated content, streaming fraud, and the unauthorized use of music on platforms.

Enhancing diversity and protecting creators

To address this situation, MEPs propose a European bill requiring platforms to disclose their algorithms, ensuring transparency and promoting the visibility of European works. The legislative project includes the introduction of diversity indicators, assessing genres, language variety, and the presence of independent authors.

The new regulation will also demand proper metadata allocation to facilitate the discovery of new works, thwart fraud, and accurately label works generated exclusively by artificial intelligence to accurately inform the audiences.

MEPs call for an increase in institutional investment in European music, supporting local, niche, and vulnerable community artists. This strategic move aims to enrich the musical landscape and empower authors in their digital transformation, promoting a more inclusive and diverse repertoire.

Additionally, the project emphasizes the importance of ensuring fair compensation for artists whose work is distributed through streaming platforms. Existing business models often result in minimal royalties for rights holders, raising doubts about the sustainability of their livelihoods.

Therefore, there is a need to establish a fair and transparent remuneration system to ensure artists are adequately compensated for their creative contributions.

For more information on the current situation, refer to the “Cultural diversity and the conditions for authors in the European music streaming market: a bibliographical review”, here.

You can find the approved text here.

Nerea Gázquez
Client Account Manager