Music Creators Call for Fairer Digital Revenues Distribution Model

A group of music creators join to call for fairer rules and greater transparency in the distribution of royalties by digital music services – asking for 80% of streaming services’ gross revenues to be paid to rights holders.

The International Council of Creators of Music (CIAM) released a report called “Fair Compensation for Music Creators in the Digital Age”, which reveals market imbalances in the use and remuneration of music by digital platforms. The author of the report, Professor Pierre-E. Lalonde, says that the current level of remuneration is inadequate given the dependency of these services on music content.

The study argues that no less than 80% of gross revenues from all sources paid to all rights holders would offer fairer compensation for the overall use of music by streaming services.

The report also says that the money share from streaming platforms is much bigger for record labels and performers than that of songwriters and music publishers. A more “equitable division of revenues between the various rights holders” would be a 50/50 split between recording and composition.

Another key finding of the report is a lack of transparency in the negotiating process between record companies and streaming platforms, which leaves the music creators in the dark. The study recommends a “more balanced business model” to ensure the sustainability of digital distribution services for music and a guarantee for fairer remuneration to all rights holders.

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