28 September 2022

PRESS RELEASE: Legrand Network study on music streaming commissioned by GESAC is launched today

GESAC has issued a press release on today’s launch of the study on music streaming.

More information about the launch and the study can be found below.

New study on music streaming raises the need to better recognize the value of creators in this growing market

Brussels, 28 September 2022: The “Study on the place and role of authors and composers in the European music streaming market” published today, provides an in-depth analysis of bottlenecks and dysfunctions that prevent authors and composers from experiencing more sustainable growth in the music streaming market. It considers how to grow the revenue pie for creators and other rightholders, as well as how to ensure a fairer and more creator-friendly music ecosystem.

The study was commissioned by GESAC and prepared by journalist and renowned music sector expert Emmanuel Legrand, who conducted an extensive market analysis based on existing economic studies, market research, as well as interviews and direct contacts with a wide range of music sector professionals, online music services, creators, and music-tech businesses.

Music streaming has unquestionably become the predominant way of enjoying and engaging with music, by offering a user-friendly, high quality, and affordable access to the largest possible repertoire at any time, from any location, online or offline. The confinement resulting from the pandemic over the last two years has accelerated the markets’ digital transformation and growth of streaming as the primary form of music consumption, which now accounts 68% of all music engagement, has over 524 million subscribers, and offers over 70 million music tracks. The study identifies the main reasons why this successful and growing market is currently failing to generate adequate revenues for creators and outlines creators’ concerns and expectations for a better recognition of their input in the market.

GESAC President Gernot Graninger (CEO of AKM and AustroMechana) noted: “We can no longer accept an economic model that, despite an exponential increase of users and the offer, is incapable of properly remunerating creators.” He added: “We need to grow the overall revenue pie and address the systemic imbalances and dysfunctions in the operation of online platforms, so that authors and composers can benefit more favourably from the resulting success of this growing market”.

Véronique Desbrosses, the General Manager of GESAC said: “It is time to consider a more balanced and sustainable market that does not leave behind the creators who fuel this thriving economy. Thanks to authors and their societies, streaming services are offering access to a massive catalogue of music in a streamlined and user-friendly manner but falling short of answering the expectations of creators in terms of remuneration and recognition”. She added: “The study provides European policy makers with a useful insight into the market as well as a constructive approach towards a more author-friendly and culturally diverse music streaming ecosystem”.

The full study, its main takeaways for GESAC, and a FAQ document outlining the study’s main findings can be found on GESAC website.

Policies

Artificial intelligence

Artificial intelligence brings about many new opportunities for our lives, including in the field of culture and creativity, but its applications also raise a number of ethical and legal questions due to their wide-spread uncontrolled and unchecked usage.

Policies

Music Streaming

Music streaming has unquestionably become the predominant means of enjoying music, replacing traditional physical media and expanded far beyond the live sector by providing user-friendly, high quality, and affordable access to the largest possible repertoire anytime, anywhere, online, or offline.

Songs and compositions are at the heart of this thriving market, which counts 524 million users on subscription-based music services globally, reaches more than 2 billion users including the streaming on UGC platforms, and offers more than 70 million tracks from approximately 8 million artists.

Yet, the authors and composers cannot benefit adequately from this success, and the debate over unfairness of this market is gaining traction across Europe and around the world.

There is a need to look more closely at how songwriters and composers are connected to this thriving economy and what can be done to improve their currently neglected situation.

Read below to find out more about the Music Streaming market.

Policies

Buy-out contracts: a dangerous threat to European creators

European music creators (composers, lyricists etc.) are being forced to forsake thousands of euros in future earnings by draconian ‘work made for hire’ (WMH) and buy-out contracts.

Online audiovisual services and broadcasters that are mainly US-based are forcing music creators to accept such contracts, which enforce a one-time payment in exchange for their rights.

Given the worldwide popularity of shows and series on platforms like Netflix, Amazon, Disney etc., and their replay value, the audiovisual market represents an important revenue stream for creators. Soundtracks alone are part and parcel of series and often attract a similar amount of popularity, massively boosting sales, streams and the worldwide fanbase of their authors.

Read below to find out how video on demand (VOD) platforms and broadcasters are circumventing EU law and what can be done about it.

Policies

Authors’ societies & the collective management model

Authors’ societies are hugely beneficial to both authors (creators), users (platforms and services), and the broader public.

Beyond benefiting these different groups, authors’ societies also support the broader cultural ecosystem by funding and promoting cultural and creative initiatives.

Below are five key benefits to authors’ societies and the collective management model.

Policies

The Copyright Directive

In April 2019, the Directive on Copyright in the Digital Single Market was formally adopted, a change that will positively transform authors’ rights throughout the EU. Each member state now has until 7 June 2021 to transpose the Directive into their respective national law.

This reform is an opportunity to address pressing issues for authors in the Digital Single Market and will promote the growth of Europe’s creative and cultural industries (CCIs) – a major driver of Europe’s economy.

One of the biggest achievements of this new piece of legislation was to address the
‘Transfer of Value’ problem, a priority issue for all European creators.

Below are some of the Directive’s key areas that will affect creators and those who profit from their work.