European managers' body EMMA calls for 'urgent changes' in the music biz

By Emmanuel Legrand 

The European Music Managers Alliance (EMMA), the umbrella body representing music managers' organisation from Europe, has issued a four-point manifesto in which it calls for "urgent changes to the recorded music business so a wider diversity of creators and businesses can benefit from the growth of music streaming."

  With streaming becoming the leading source of revenues for record labels and performers, EMMA is concerned that the system does not allow all stakeholders to make the best of the new eco-system, due to "commercial inefficiencies alongside outdated licensing and contractual practices."

  “The robustness and growth of music streaming through the pandemic should have been a lifeline to these people. However, because of fundamental inequalities with how streaming services are licensed and how revenues are distributed, the vast majority are being cut further adrift," noted Per Kviman (pictured below, right) of Versity Music in Sweden and Chair of EMMA.

Implement urgent changes

  EMMA is calling for four changes to be implemented as a matter of urgency to help rebalance the music economy:

  > Updated contracts between artists and major music corporations:

  EMMA states that "analogue royalty rates should not apply to digital income, outdated deductions should be removed, and un-recouped balances reviewed after a reasonable period of time." Similarly, artist debt "should not be carried forwards for decades." On a wider scale, EMMA would like the licensing of digital music services "better reflect the diversity of Europe’s recorded music sector" and see an end to practices whereby three major labels receive "substantial, upfront and unattributable payments as part of their licensing agreements."

  > Eliminating “black box” distributions:

  There is an imbalance in the market, says EMMA, since unidentified and non-matched writers revenues (the so called “black box money”) frequently belong to the lowest earning songwriters, but are "typically reallocated by market share to the highest-earning, or to those with inside knowledge of Performance Rights Organization (PRO) mechanisms." For EMMA, this is "unjustifiable" and is "not in the interests of PRO’s wider membership." EMMA calls for "reform with immediate effect."

  > The trialing of new payment models for streaming:

  EMMA would like to see "a full and transparent trial of what are known as user-centric payment systems" with the belief that this method of distribution "would reconnect the music played by streaming subscribers with the revenue received by artists and songwriters."

  > A coordinated reopening of music markets:

  The ongoing global pandemic "requires a unified response" according to EMMA, which is calling for "EU-wide strategies to restart and reopen, financially supporting artists’ businesses to return post-pandemic."

Realigning contracts

  EMMA is also calling on European governments "to implement the EU Copyright Directive in full, a move that would offer creators greater transparency and leverage in their licensing and contractual partnerships." Kviman said the implementation of the EU Copyright Directive Articles 17-23 would "enable real changes of improved fairness between rightsholders and creators, as well as improved remuneration between DSPs and rights holders." 

  Virpi Immonen (pictured above, left) of Fullsteam Management in Finland and Vice-Chair of EMMA, said: “As music managers, we love and embrace streaming technology, much of which originated in Europe and has returned the recorded music business to growth. We have adapted from a market dependent upon the unit sales of CDs and downloads, to one built around access and streams. These changes have shifted the dynamics of our business forever, but without a similar realignment of contracts, licensing practices and revenue distribution we risk disenfranchising the creative talent on who our entire industry depends.”

  EMMA was founded in 2018 and brings together representatives from Music Managers Forums in Finland, France, the Netherlands, Norway, Poland, Sweden and the UK. Collectively, the memberships of these organisations represent thousands of artists, songwriters, producers and DJs throughout Europe.