{"id":83720,"date":"2021-02-12T15:00:00","date_gmt":"2021-02-12T15:00:00","guid":{"rendered":"http:\/\/routenote.com\/blog\/?p=83720"},"modified":"2021-02-12T13:33:27","modified_gmt":"2021-02-12T13:33:27","slug":"youtube-defends-artist-royalty-payouts-at-economics-of-music-streaming-inquiry","status":"publish","type":"post","link":"https:\/\/routenote.com\/blog\/youtube-defends-artist-royalty-payouts-at-economics-of-music-streaming-inquiry\/","title":{"rendered":"YouTube defends artist royalty payouts at economics of music streaming inquiry"},"content":{"rendered":"\n

Image Credit: Darv<\/a><\/em><\/p>\n\n\n\n

SoundCloud and YouTube were questioned by the UK government over their influence on music streaming \u2013 and Twitch had literally nothing to say.<\/span><\/h4>\n\n\n\n

10th<\/sup> February was a busy day for the UK government\u2019s continuing inquiry into the economics of music streaming,<\/a> with three sessions taking place. The DCMS is gathering evidence<\/a> on the effects<\/a> of music streaming growth on the music industry, focusing on how that has affected<\/a> artists\u2019 earnings. After the Ivors Academy and the Musician\u2019s Union had taken aim at safe harbour laws that benefit YouTube,<\/a> the DCMS put questions to representatives from YouTube, Twitch and SoundCloud, to gain an insight into how services that host user-uploaded content influence music streaming.<\/p>\n\n\n\n

At the very end of the session, YouTube was blamed for \u2018dampening down an entire industry\u2019. Katherine Oyama, Director of Government Affairs and Public Policy at YouTube,<\/a> and Vice President for Content Partnerships at SoundCloud<\/a> Raoul Chatterjee were both interrogated. Steve Ben\u00e9 the General Counsel from Twitch<\/a> was also there the entire time, but curiously wasn\u2019t questioned at all and said a total of two words: \u2018Thank you.\u2019<\/p>\n\n\n\n

Who’s worse for artist royalties: YouTube or Spotify<\/a>?<\/h5>\n\n\n\n

Most scrutinised in the session was YouTube, whose protection from claims of copyright<\/a> infringement by safe harbour laws has been the focus of years of complaints. Revenue<\/a> from free, ad-funded music streaming pays out significantly less than that of subscription-based streaming services. MP Kevin Brennan asked Oyama: \u2018Isn\u2019t safe harbour just a get-out-of-jail card to allow copyright infringement to happen on your services?\u2019, to which Oyama replied that, no, she didn\u2019t think so. Apparently it enables the platform to ‘invest in services’. Oyama also stated that by 2019 YouTube had paid out $12 billion to rights holders. <\/p>\n\n\n\n

Critics argue that there is a pay gap between the money services like YouTube make from user-generated content and the money that gets passed on to rights-holders. Right at the end of the session the Chair of the committee grilled Oyama on its payouts to artists. In written evidence<\/a> to the inquiry, YouTube had boasted that \u2018record labels agree it is possible we will become the music industry\u2019s number one source of revenue by 2025\u2019, despite claims that a stream<\/a> on YouTube is only worth 0.05p. (The whole collection of written evidence, from record labels to the band Madness, is available to read online<\/a> if you have five or six days to spare.) <\/p>\n\n\n\n

According to Oyama, the YouTube subscription service pays out similar royalties to Spotify.<\/a> When pressed about the advertising<\/a> model, she wouldn’t confirm or deny that the 0.05p figure was correct, saying that YouTube doesn\u2019t deal with individual artists and that ad rates differ depending on where they are in the world. She skirted nicely around answering the question whilst simultaneously calling for greater transparency in the industry, which is quite ironic considering a lack of transparency surrounding artist earnings<\/a> is one of the reasons YouTube was called to the committee in the first place.<\/p>\n\n\n\n

Should users pay more for music streaming?<\/h5>\n\n\n\n

On behalf of SoundCloud<\/a> Chatterjee also defended the alleged user-generated content pay gap, and like YouTube pointed to ad-supported services offering a chance for unknown artists to get their music heard. SoundCloud has over 250 million tracks and 12 million creators are heard every month. Chatterjee said:<\/p>\n\n\n\n

It is important to remember that with the ad-supported services, there is a lot of incremental revenue that is being created. Not everybody in the world can afford to pay \u00a39.99 for a subscription service.<\/p>Raoul Chatterjee, Vice President for Content Partnerships at SoundCloud<\/cite><\/blockquote>\n\n\n\n

MP Alex Davies-Jones was unimpressed by this. \u2018We have musicians who are struggling to pay their bills because they are not earning the average wage in the country. Your justification is that because people cannot afford to pay the subscription service, we should just give it to them for free.\u2019 Chatterjee\u2019s argument back was that any musicians on SoundCloud can work with the company to use their tools to reach their audience and collaborate with other musicians, and figure out the best way to present their content. SoundCloud is reportedly preparing to soon introduce a user-centric payment model,<\/a> but Chatterjee stressed they haven\u2019t formally announced anything yet. It was, he said, a complex area:<\/p>\n\n\n\n

It would require industry-wide conversations and support to be impactful. The majority of pay-outs are through intermediaries \u2013 record companies, distributors, publishers and collection societies \u2013 so in order to have the most significant effect on artists we would have to work in co-operation with those partners.<\/p>Raoul Chatterjee<\/cite><\/blockquote>\n\n\n\n

Steve Ben\u00e9, representing Twitch, said nothing, because he wasn\u2019t asked any questions.<\/p>\n\n\n\n

Nobody is calling for a boycott of music streaming services. The hope of campaigners like Tom Gray and the #BrokenRecord<\/a> movement is that the economics of streaming enquiry will get the message across, not only to the government but also music companies and streaming platform users, that the current system is based on an outdated system and needs drastic reform for artists to be able to earn their fair share.<\/p>\n","protected":false},"excerpt":{"rendered":"

SoundCloud and YouTube were questioned over their influence on music streaming \u2013 and Twitch had literally nothing to say.<\/p>\n","protected":false},"author":24,"featured_media":83722,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[13],"tags":[11014,22553,22551,20567,1038,19423,2443,2133,4807,15231,21454,22560,70,22552],"acf":[],"yoast_head":"\nYouTube defends artist royalty payouts at economics of music streaming inquiry - RouteNote Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/routenote.com\/blog\/youtube-defends-artist-royalty-payouts-at-economics-of-music-streaming-inquiry\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"YouTube defends artist royalty payouts at economics of music streaming inquiry - 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