IMPALA QUESTIONS STREAMING MODEL

European independent music body IMPALA has raised concerns with Deezer and UMG’s proposals for an artist-centric streaming model, saying the plans could lead to a “two-tier” market.

After the unveiling of the plans, which aim to create a streaming model that better rewards artists, IMPALA members have raised several questions. The org is concerned that the model could negatively impact the work of independent labels (who it says account for 80% of new releases), as well as label decisions on which services they choose to deal with.

IMPALA also points to the exclusive nature of the plans, “developed in a vacuum with a market leader instead of the sector generally,” as a source of contention. Unless other stakeholders agree, the org says it doesn’t see how the proposal could apply outside of UMG repertoire.

IMPALA’s Executive Chair Helen Smith welcomed “Deezer’s commitment to improve the streaming market” while noting “it will be interesting to see the modelling and understand if this has been discussed with other stakeholders, as well as with regulators.

“The gap between bigger and less-streamed artists should be addressed and our plan sets out a number of different ways to achieve that. If Deezer’s approach were to create a two-tier market that would have a negative impact on our members, that would not be good for diversity.”

IMPALA has its own 10-point plan to improve streaming, which includes using AI to detect fraud, increasing subscription prices and for labels to increase digital royalty rates for artists.

AIM CEO Silvia Montelllo said: “AIM welcomes efforts to review the current streaming economics model. But whilst there are many positives to takeaway, including Deezer’s continued intention to combat streaming fraud, boosting royalties for artists who meet certain consumption thresholds could encourage a ‘two-tier system’ that would disadvantage those navigating the first steps of their careers or working within emerging genres. Considering these proposals were agreed without industry consultation, more collaboration and transparency around modelling is needed to ensure they work for rightsholders operating at all levels of the business.”