The Culture and Education Committee of the European Parliament recently voted on a report titled ‘Cultural Diversity and the Conditions for Authors in the European Streaming Market‘. This vote led to a proposal for new legislation aimed at reforming music streaming within the EU. The report, adopted with 23 votes for, three against, and one abstention, seeks to address several key issues in the music streaming sector.

The European Parliament’s initiative comes amidst growing concerns over the distribution of revenues in the music streaming market, which is dominated by a few major labels and popular artists. The proposed legislation aims to create a fair and sustainable environment for music streaming and to promote cultural diversity.

These are the key aspects of the proposed legislation:

1. Transparency of Algorithms: The bill calls for streaming services to make their algorithms and recommendation tools transparent. This is to ensure that European works are visible and accessible to users.
2. Diversity Indicator: The proposal includes the creation of a “diversity indicator” to analyze the variety of genres, languages, and the presence of independent authors on streaming platforms. This aims to promote a wider range of music and cultural diversity.
3. Rights Identification: The bill would require streaming services to correctly identify right-holders through proper allocation of metadata, facilitating the discovery of their works. This measure also seeks to prevent practices like streaming fraud, which undermines the value of music content.
4. Labeling of AI-Generated Content: A provision in the bill calls for clear labeling of AI-generated tracks, allowing listeners to distinguish between human-produced music and AI-generated songs.
5. Investment in European Music: The bill urges increased investment in European music, particularly in local, niche artists and artists from vulnerable communities. This is aimed at offering a more diverse repertoire and supporting authors in the digital transformation of their business models.

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Lead MEP Ibán García Del Blanco commented on the importance of recognizing the role authors play in the music sector and the need to review and improve the revenue distribution model used by streaming services to promote cultural diversity. The Plenary vote on this non-legislative resolution is scheduled for the January 2024 Strasbourg session.

As for our scene, especially the 5th key issue addressed above (aimed at niche artists) will be rather interesting. Nevertheless, the changes to the Spotify royalty model will have a huge impact on the industrial music scene, even if niche artists get more attention on streaming platforms. Its changes includes a controversial policy requiring tracks to get a minimum of 1,000 listens every year to receive royalties.