A new study from the International Federation of the Phonographic Industry has backed what many have been saying for years—that musicians are not seeing a fair amount of revenue for their music from the digital marketplace.
The IFPI, an organization “representing the recording industry worldwide,” published their report last week. It says that digital sales have overtaken physical ones for the first time, and now make up 45% of music industry revenue. In addition, people are listening to more music than ever before. However, the pace of this change has not been matched by equitable compensation for musicians.
In her full commentary, IFPI CEO Francis Moore describes the value gap as “the gross mismatch between music being enjoyed by consumers and the revenues being returned to the music community.”
Perhaps most damningly, the report says that “user upload” streaming services are creating the value gap deliberately in order to pay out less. “The "value gap" arises because some major digital services are able to circumvent the normal rules that apply to music licensing.”
These streaming services rely on “safe harbor” laws to avoid these rules. But the report says these laws are too old, and are not meant to protect corporations.
The report concludes pushing for change.
Youtube told the BBC that the company "paid out over $3bn (£2.1bn) to the music industry." Youtube CEO Robert Kyanci suggested that an artist's contract with their label could be affecting how much revenue they receive from their digital streams.