A Remuneration Right Will Solve Performer Remuneration Issues Without Harming Streaming Services

On Tuesday the 23rd of February, DCMS Select Committee’s inquiry into The Economics of Streaming invited Paul Firth (Director of International Music at Amazon), Horacio Gutierrez (Head of Global Affairs and Chief Legal Officer at Spotify) and Elena Segal (Global Senior Director of Music Publishing at Apple Inc) to give evidence in their last hearing.

The key objective of our PayPerformers campaign were highlighted as MP Damian Green asked Horacio Gutierrez (Head of Global Affairs and Chief Legal Officer at Spotify) how the equitable remuneration right performers have in Spain affected how Spotify operates in that market. The answer stated that it hasn't affected the way Spotify operates in Spain, thus making it clear that a remuneration right will solve performer remuneration issues without harming streaming services. You can see his full response below:

The Select Committee members lead an inspirational session where the three streaming services agreed to enter into dialogue with music industry on how to make the division of revenue more equitable.

The hearing also confirmed the major label dominance as it was agreed among the platforms that a stream is not a sale! That means, in most contracts creators are due 50% of revenue and not the lower percentage as if it was a conventional sale.

Naomi Pohl, Deputy General Secretary of the MU, said:

“We also heard about the role of human curation in playlisting and ad-supported services, which point to a broadcast model like radio. It is becoming increasingly clear that we need a review of how streaming is categorised legally as this could significantly improve payments to musicians and create an entirely new royalty stream for session players.”

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