Representing more than 15,000 artists in ten European countries, the International Artist Organisation (IAO) has warned the European Commission that fixing the ‘Value Gap’ or ‘YouTube Question’ solely in favour of the major record labels will not, in isolation, address fundamental problems in the digital music economy. In response, the Music Producers Guild is supporting the IAO campaign to protect artists’ rights and opportunities.
‘Neither platforms nor labels should be able to use contractual gymnastics to remove value from the table and deny stakeholders further down the value chain their fair and legitimate share from the use of their works,’ says IAO President and CEO of the UK’s Featured Artists Coalition, Paul Pacifico. ‘Yes, we must pull together to “increase the size” of the so-called “cake”, but to ignore how that cake is being cut would be to ultimately take the artists’ slice off the table.’
The IAO’s intervention came about when major record labels, represented by the IFPI, asked artists to sign a letter supporting its campaign to revise Safe Harbour exceptions to copyright. Although the IAO is happy to back the IFPI, it is adamant that the IFPI’s campaign does not go far enough to fix long-term problems that are holding the industry back. Growth and innovation throughout the music industry will be stifled unless the European Commission ensures that all new legislation protects the rights and opportunities of creative artists, songwriters, performers and other small businesses within the music ecosystem, the IAO states.
It goes on to say that issues around transparency, a fair share of value, duty of care and the evolution of remuneration rights to be fit for the digital age sit at the heart of its own campaign – and these dovetail precisely with the MPG’s own views on how the value chain should be re-booted to ensure future music industry growth.
‘We thoroughly support the IAO’s call for a level digital playing field,’ says MPG Executive Director, Bruno Ellingham. ‘Everyone involved in the music industry now operates in a world of value-share business models as opposed to the old order where we bought and sold physical products. Trust alone is not enough to ensure that the digital world is fair for everyone. We also need legislation that recognises the rights of music creators and ensures they are properly remunerated so that they can build sustainable, long-term careers.’
