Shaping a fairer digital future: exploring fairness in the European music industry

As part of its mission to explore fairness in the digital music landscape, the Fair MusE project has released a new report examining how streaming services are transforming the European music industry. The study highlights key challenges around remuneration, transparency, and diversity, offering insights to support a more equitable and inclusive future for artists and stakeholders alike.

The European music industry is at a significant turning point, profoundly impacted by the rapid rise of Music Streaming Services (MSS). The dramatic shift towards digital streaming has reshaped how music is accessed, distributed, and monetised, raising essential questions about fairness, within the industry. A recent deliverable from the Horizon Europe-funded Fair MusE project delves into these critical debates, offering fresh insights based on extensive surveys and comprehensive stakeholder interviews.

Fairness, as the research highlights, is neither fixed nor universally defined but rather a fluid concept shaped by constant negotiation among industry actors. The study adopted a political sociology approach to capture the complexity and variability of fairness as understood by diverse stakeholders across the music sector. This approach revealed how perceptions of fairness differ considerably, shaped by the roles, values, and interests of various industry players, from artists and record labels to streaming platforms and policymakers.

The COVID-19 pandemic significantly amplified existing challenges, transforming streaming from an additional revenue stream to the primary financial lifeline for many artists. With live performances halted, artists found themselves increasingly dependent on digital revenues, which brought renewed attention to the debate on fair remuneration. While this period was seen by some as a moment of heightened awareness, it is widely perceived that it failed to produce lasting change or shift power dynamics in the sector.

Central to these discussions is the potential adoption of the user-centric payment model, which allocates subscription fees directly to the artists a listener chooses to stream. Although receiving considerable support for addressing some inequalities, the adoption of this model remains contentious. While many stakeholders acknowledge its potential benefits, they caution that it might not fully rectify deep-rooted structural issues within the industry. Moreover, there are practical concerns regarding its implementation and possible resistance from major industry players who benefit from the current system.

Transparency is another major concern highlighted by the research. Industry professionals expressed frustration over the opacity surrounding MSS algorithms and recommendation systems. These algorithms, although integral to music promotion and listener engagement, are frequently criticised for favouring popular artists, thus limiting exposure for independent and less mainstream musicians. Stakeholders emphasised that the lack of transparency undermines fairness, negatively affecting artists’ visibility and revenue potential. Interviewees strongly advocated for clearer insights into these recommendation mechanisms and more inclusive decision-making processes involving all stakeholders, rather than the current model, where critical agreements often occur behind closed doors protected by Non-Disclosure Agreements (NDAs).

Diversity and cultural representation emerged as crucial elements of the fairness debate. Although streaming platforms theoretically broaden musical access, algorithmic recommendations often inadvertently limit exposure to diverse genres and artists. For example, geotagging features, intended to personalise user experiences, can unintentionally restrict global visibility and reduce opportunities for artists from less mainstream markets. While quotas and similar measures drew mixed reactions from stakeholders, there was broad agreement on the necessity for comprehensive strategies to promote genuine diversity beyond merely commercial metrics. Stakeholders called for more inclusive practices, ranging from targeted promotional support for underrepresented artists to policies encouraging cultural inclusivity across digital platforms.

User-generated content (UGC) platforms like TikTok and YouTube further complicate the industry’s fairness landscape. These platforms, having operated for more than a decade under a different regulatory framework that significantly reduced their copyright liability via ‘safe harbour’ provisions embodied in the EU e-Commerce Directive (2000) , still offer much lower royalty rates than traditional MSS, contributing to what stakeholders refer to as a “value gap.” Critics argue these platforms disproportionately benefit from musical content without adequately compensating creators, thus undervaluing music as a creative work . As emphasised in a study conducted within the Fair MusE project, this discrepancy has eventually led to the adoption of a EU copyright law reform under Directive 2019/790 (Art. 17) that forced UGC platforms to seek ex ante licences from music right-holders so as to fill or reduce the value gap and, therefore, align UGC compensation more closely with established MSS standards.

The introduction and rapid development of Artificial Intelligence (AI) technologies have also introduced significant challenges and opportunities for the music industry. AI-driven tools, ranging from personalised recommendation systems to generative music algorithms, hold transformative potential. However, stakeholders express deep concerns about ethical implications, notably the use of copyrighted material in AI training and the competition posed by AI-generated music against human creators. Industry professionals called for transparent licensing agreements, clear labelling of AI-generated content, and robust regulatory frameworks addressing AI’s potential impacts on musicians’ livelihoods.

To effectively tackle these diverse and interconnected issues, the report underscores the need for comprehensive policy solutions. While proposals such as increasing MSS subscription prices received notable support, stakeholders generally agreed that financial measures alone would be insufficient. Instead, they advocated for integrated strategies that simultaneously address remuneration inequalities, enhance transparency, and foster greater cultural diversity. Experimenting with new revenue models, improving transparency in contractual negotiations, and implementing robust policies promoting inclusivity are essential steps identified in the study.

Ultimately, this deliverable highlights that fairness within the music industry is not just an economic matter but a broader socio-cultural concern requiring holistic solutions. By emphasising the interconnectedness of remuneration, transparency, and diversity, the document provides vital insights to inform future policies and industry practices. The goal is clear: fostering a fairer, more equitable, and inclusive music industry, responsive to the evolving digital landscape and reflective of the diverse cultural tapestry of Europe.

The full deliverable has been deposited in the ULiège institutional repository with restricted access. Access can be granted upon request via the following link.

To explore the main findings and insights, a publicly available slide set can be accessed here.