Artists losing millions from misallocated UK nightclub royalties
A Fair Play report has shown that outdated systems are failing UK artists in nightclubs and festivals.
New research reveals that a huge chunk of UK club royalty payments are going to the wrong people – and many electronic, underground, and independent artists are being short-changed. As The Guardian reports, according to the Berlin-based Fair Play initiative, only 28% of the fees paid by the average UK nightclub are being properly distributed to the musicians whose songs are actually played. That means over £5.7 million a year is being misallocated.
The problem comes down to how performance-rights organisations work today versus how they were designed decades ago. Ethan Holben, leader of the Fair Play report, puts it bluntly, “What we’re seeing in the industry is a fundamental imbalance. DJs can command substantial fees for playing other people’s music, yet the producers whose tracks are being played in clubs and festivals around the world often make little or nothing. Many don’t even know their music is being played.”
This imbalance is not limited to electronic music alone. Artists producing rap, R&B and metal, whose tracks often feature in club and venue playlists, may also be impacted. Those working independently, or outside mainstream circles, are particularly vulnerable, as their music is frequently played in environments where monitoring is much less precise.
A core issue lies in how performance data is collected. When DJs do not submit accurate tracklists, rights organisations are forced to make assumptions based on information from other venues, radio playlists or occasional in-person spot checks. According to findings in the Fair Play report, around half of these assumptions are likely to be wrong. As a result, lesser-known artists may be unintentionally supporting more established names whose music is more visible on traditional platforms.
The current royalty system was designed for a time when artists performed their own songs live. Many collection organisations are “over 100 years old,” says Ethan Holben, and their processes are still geared toward traditional performances rather than the DJ-driven club and festival scenes dominating today.
Technology could help, though. Fair Play found that venues using music recognition software achieve around 90% accuracy in payments. Yet fewer than 7% of UK clubs have adopted it, likely due to cost and operational pressures.
Submitting accurate tracklists is even more effective, raising accuracy to roughly 95%. Despite this, only 5% of DJs provide tracklists consistently. DJ and producer Josh Doherty told The Guardian, “Most DJs just don’t care that much… It’s purely a question of laziness and ethics.” He also noted how proper reporting helped him: when several of his tracks were played during a stadium tour warm-up set, he received thousands in royalties. For many independent artists, that kind of payment could be transformative.
The issue has wider ramifications too. Artists including the Jesus and Mary Chain and Robert Fripp have sued PRS for Music, arguing that current systems favour large performers. PRS countered that without full track-level data from venues and DJs, any figures are “indicative, not definitive.”
By improving reporting and encouraging cooperation between DJs, venues and rights organisations, the industry can start to ensure that artists are paid what they deserve. Even small changes in how music is tracked and documented can make a meaningful difference, helping creators earn fairly for the work they put into their music.