Music authors are not fairly paid by streaming platforms such as Spotify, study shows

Music authors and composers are not properly remunerated by streaming platforms such as Spotify, according to a study by Sabam, the Belgian authors association, ​ presented on Wednesday by Gesac, the European grouping of authors' and composers' associations.

The main cause of the low remuneration for songwriters and composers is a loss of value of their creations, says Sabam in a press release. For example, the price of the basic Spotify subscription of 9.99 euros has not changed since the platform's entry on the Belgian market in 2011.

Formulas such as the family or student subscription have actually reduced the average price per user in recent years. As a result, the average income for authors and composers has decreased.

Moreover, according to Sabam, the distribution of income is disproportionate: 55 per cent of the generated income is for the labels and artists, 30 per cent remains with the streaming platforms and only 15 per cent ends up with the authors and publishers of the music.

The Belgian market also has its own limitations, Sabam said. The presence of three different cultures in a small area leads to a limited degree of penetration.

Belgian style

Belgium also has many more free subscribers than other countries. "The economic impact of this is huge, as a free subscription brings authors 10 times less revenue than the paid version," Sabam said.

Finally, Belgians mainly stream foreign music, to the detriment of local authors, because more money flows through to other countries.

"The Belgian market is bursting with local musical talent, and we want them to be properly compensated for their creativity"

Sabam is asking the government to invest more in financing and promotion options for local musical talent. It also sees a role for telecom operators. "The KPN initiative [the operator integrated Spotify's paid subscription in its mobile offer] is a good example of this," it said. "The Dutch music streaming market is now almost three times as large as ours."

There is also a need for education. The consumer is not always aware that streaming for free has an impact on the remuneration of the people who make the music.

Streaming has become the main form of music consumption, accounting for 68 per cent of global music engagement.

(VIV)

^{Prime minister Alexander De Croo with DJs Dimitri Vegas and Like Mike, March 2017, Brussels © BELGA PHOTO (NICOLAS MAETERLINCK)}