The European Parliament has called for fair and sustainable rules in the music streaming industry.
In a resolution passed with strong support (532 votes to 61, with 33 abstentions), the Parliament urges the creation of EU regulations to tackle current imbalances in the sector.
MEPs are calling for a reevaluation of the current "pre-digital royalty rates," which they argue leave a significant number of creators with insufficient compensation.
The resolution condemns payola schemes that coerce authors into accepting lower or no revenues for increased visibility, stressing the necessity of revising these outdated payment structures.
Furthermore, the Parliament insists on the creation of a new EU legal framework for the music streaming sector, where currently no specific EU rules apply. Streaming platforms, such as Spotify Technology SA (NYSE: SPOT) and Apple Inc's (NASDAQ: AAPL) Apple Music, the primary means of music consumption for many, must adhere to transparent revenue allocation practices to protect authors.
One key aspect of the resolution addresses the visibility of European musical works on streaming platforms amidst the overwhelming content influx. MEPs propose the consideration of concrete measures, such as quotas for European musical works, to ensure prominence and accessibility.
The call for transparency extends to AI tools used by streaming platforms, with MEPs advocating for mandatory disclosure of algorithms and recommendation tools.
"The Parliament is giving voice to the concerns of European creators, who are at the heart of the music streaming market," said rapporteur Ibán García del Blanco in the EU press release. "Cultural diversity and ensuring that authors are credited and fairly paid has always been our priority; this is why we ask for rules that ensure algorithms and recommendation tools used by music streaming services are transparent as well as in their use of AI tools, placing European authors at the center."