Claims from author and publisher groups for more of the pie
Option Appraisal | Status Quo | Equitable Remuneration | Artist Growth Model |
Impact on Label Return on Investment | Investment likely to increase in line with UK revenue growth | Less investment in UK artists as ROI falls and foreign competition increases | Increased investment in more diverse and niche content |
Impact on DSP Cost of Goods | Likely to edge downwards (increasing DSP leverage) | Increased downside risk for labels under compulsory blanket licensing | Negligible – labels will have marginally different agreements with DSPs |
Impact on Economies of Scale | Indie share increases with prominence of Merlin and DIY | PPL licensing shifts costs but mainly benefits larger labels | More equitable allocation of costs and benefits |
Impact on Transaction Costs | Likely to fall as systems are re-engineered | Likely to increase due to legal implications of ‘switching costs’ | One-off increase in transaction costs to calibrate scales |
Impact on Artist-Label Contracts | More transparency as artists negotiate more confidently | Less transparency accompanying increased switching and auditing costs | Potential for less transparency as complexity increases |
More on the situation of authors and publishers
Other areas we work on to improve artist remuneration include performance rights. Here we have various working groups, including one looking after the vital question of whether countries that don’t have their own performance rights can claim revenues from European performers and labels. This could cost 125m euros a year just for the USA, see more here.