Music streaming giants ‘open’ to alternative ways for paying artists

Spotify has confirmed that it is open to alternative ways to calculate how bands are to be paid and how little new performers can receive.

Senior management from the Swedish business and competing streaming companies Amazon Music and Apple Music announced that they are able to collaborate as an industry.

One theory of corporations by MPs is the user-centered concept, by which the more a particular performer is noticed, the more they are compensated.

Horacio Gutierrez, Head of Public Communications and Head of Law of Spotify, said that while the company would pursue multiple avenues, testing conducted on the user-focused model did not deliver better results for artists now.

In response to @MrJohnNicolson regarding the artists' disappointment with the @Spotify model, Horacio Gutierrez said that the platform is conducting research into the implementation of a 'user-centered' model if it was embraced by artists.

— The Committee on the Digital, Arts, Media and Sports (@CommonsDCMS)

"The initial research on the user-centric model does not actually demonstrate a dramatic change in the way many people thought, but on the other hand if musicians and artists in general prefer the model, then we will support further research," he said to the Committee on Modern Culture, Media and Sports.

"To take into account that a transition to such a model, not just a decision by Spotify, requires that any license agreement we sign with each right holder worldwide be transferred into that model. This isn't a trivial position, but when we consider it to be a more equal and beneficial model, we'll be totally open-minded about it."

Paul Firth, Amazon's Director of International Music, agreed: "I feel that this is the time to get the UK industry together and to publicly model and analyize other delivery platforms.

"Amazon would be willing and willing to participate in it."

Elena Segal, Apple's global Senior Music Publisher, took a more conservative stance by saying that the proposal was "interesting."

Answering the facts from the singer Nadine Shah, that she wasn't paying enough for her songs, Horacio Gutierrez from @Spotify says that it is sad to learn that she feels this way and that she doesn't realize how much she has won her record label.

— Digital Assembly, Committee on Arts, Technology and Sport (@CommonsDCMS), 23 February 2021

"The key thing for us is that consensus needs to be found between all licensing laws, it's not a model that can apply to some licensing laws and not others, so obviously the only way to reach consensus like this is by working together as an industry," she explained.

In the other section of the session, the delegate of Spotify was asked about the commentary of singer-songwriter Nadine Shah on last year's committee where she said: "Earnings from my streaming are not significant enough to keep the wolf out of door."

Mr. Gutierrez said it was "unlucky" to know that she felt like this and that he was unsure of the division of sales she had negotiated with her record company.