The latest industry comment on Universal Music Group and Deezer’s plans for a new ‘artist-centric’ system of streaming payouts comes from UK indies body AIM.
“AIM welcomes efforts to review the current streaming economics model,” said its CEO Silvia Montello on Friday.
“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.”
Montello’s comments came shortly after European indies body Impala had published similar views on UMG and Deezer’s plans. They also followed an interview with Deezer’s CEO in which he expressed the hope to roll the model “out to all providers in all countries in 2024”.
Montello thinks more work is needed before that can happen. “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.”
AIM has previously published its own ideas for an ‘Artist Growth’ model of streaming payouts.