EU Demands Fair Pay For Artists On Music Streaming Platforms Like Spotify, Apple Music
Portfolio Pulse from Franca Quarneti
The European Parliament has passed a resolution with strong support to ensure fair pay for artists on music streaming platforms. MEPs are advocating for EU regulations to address imbalances in the sector, including outdated royalty rates and payola schemes. The resolution calls for transparent revenue allocation practices and the creation of a new EU legal framework. Spotify Technology SA (SPOT) and Apple Inc's (AAPL) Apple Music are mentioned as platforms that would need to comply with these potential new rules. The resolution also suggests quotas for European musical works and demands transparency in the use of AI and algorithms by streaming services.
January 18, 2024 | 7:42 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
Apple Inc's Apple Music could be impacted by the EU Parliament's resolution for fair artist compensation and transparent AI use, which may lead to changes in its service operations in Europe.
Apple Music, as a major music streaming service, could be affected by the proposed EU regulations, leading to potential revisions in royalty payments and algorithm transparency. This could result in increased operational costs and changes to the user experience, which might have a short-term negative impact on the company's performance in the EU market.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Spotify Technology SA may face new EU regulations demanding fair pay for artists, transparent revenue allocation, and AI transparency, potentially impacting its business model and cost structure.
The resolution by the EU Parliament could lead to increased costs for Spotify as it may have to adjust its royalty payment structures and increase transparency in its operations. This could negatively impact profit margins in the short term as the company adapts to potential new regulations.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80