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Gap yeah? Who wins and who loses in the EC’s plan to fi x the value gap... UK BODIES WELCOME ‘GOOD FIRST STEP’ BUT UGC SITES FACE CONTENT CRACKDOWN COPYRIGHT BY EMMANUEL LEGRAND

As part of its Digital Single Market initiative, the European Commission released a “copyright package” on September 14, covering a wide range of issues from geo-blocking to ancillary rights for the publishers of news.

But the most significant proposal for the music business was the EC’s attempt to address the issue that’s become known as “the value gap”. That’s caused by the safe harbour provisions that allow YouTube and other user-generated content platforms to host unlicensed content without being liable for the infringement.

The music biz has claimed consistently that this hands a commercial advantage to such platforms over the fully-licensed likes of Spotify, which also pay rights-holders better rates. The platforms deny this.

While actual legislation is still some way off, the proposal was welcomed as “a good first step” by a host of rights-holder bodies, from PRS For Music to the IFPI.

Geoff Taylor, chief executive of the BPI and BRIT Awards, said: “The explosion of music streaming offers the prospect of a new era of sustained growth for British music, but this potential will only be realised if the EU and UK government fix the fault-line that lies at the very heart of the digital music market. It is very encouraging that the

“Encouraging”: BPI chief Geoff Taylor

EU has begun the process of doing so.”

The proposals will now be submitted to the European Parliament. Here, Music Week looks at who will benefit and who will suffer, if the proposals become law...

Winners Rights-holders From songwriters to labels and publishers, the creative community in general should benefit from the measures, through gaining more control over the use of their content and, potentially, more benefit from its monetisation. But since the devil is in the detail, if the system ends up not much different to YouTube’s current Content ID, then the issue will only be half fixed.

Apple Music, Tidal... And Spotify Under safe harbour, platforms are protected if its users post content that’s been given exclusively to another service. Many streaming exclusives or windowed album releases have been undermined by instantly appearing elsewhere. Spotify might not play the exclusives game, but if user-generated platforms have to play by the same rules, it will level the playing field for them as well.

Losers YouTube   If and when the EC proposal is implemented, UGC platforms will be more accountable to rights-holders and will have to ensure the monetisation of content is fairly shared with those rights-holders. Services will bear the burden of creating systems to identify and remove unlicensed content. Ultimately, of course, these platforms could benefit too, since their relationship with the creative community would become less confrontational, helping revenues grow. Plus no one will be banging on about the value gap anymore.

The fans Some in the industry claim music fans will win because more money flowing back to the creative sector means more investment in fresh content. But, in the short term, it will lead to frustration for those used to finding anything they want, for free. The big question: can the biz convert those people to other means of listening?

WEEK 37 TOP 75 SHARE BY CORPORATE GROUP

WEEK 37 TOP 75 SHARE BY RECORD COMPANY

ARTIST SINGLES

Universal - 41.65% Sony - 34.88% Warner - 17.08% Others - 6.39%

ARTIST ALBUMS

Universal - 47.66% Sony - 15.09% Warner - 11.46% Others - 25.79%

ALL ALBUMS (Combined Artists & Compilation Albums)

Universal Music - 45.10% Sony Music - 15.89% Warner Music - 7.23% Sony / Universal - 9.75% Sony/Warner 75/25 - 1.40% Others (See breakdown below) - 20.63%

BECAUSE MUSIC 1.24% BMG 1.29% BOYS DON'T CRY 1.38% EPITAPH 0.88% HOPELESS 0.57% KOBALT MUSIC GROUP 6.67% NEW STATE 0.83% PEMA 1.73% RED BULL 1.78% SONY MUSIC17/WARNER MUSIC3 0.61% UNIVERSAL MUSIC4/WARNER MUSIC1 0.65% XL BEGGARS 3.00%

YEAR TO DATE TOTAL MARKET SHARES BY CORPORATE GROUP

ARTIST SINGLES

Atlantic - 12.39% RCA Label Group - 17.53% Virgin EMI - 15.36% Polydor - 10.25% Island - 14.37% Syco Music - 4.32% Columbia - 5.99%

Others - 19.79%

3 BEAT 1.67% BECAUSE MUSIC 4.84% BLACK BUTTER 3.18% INSANITY 0.83% MINISTRY OF SOUND 1.54% PARLOPHONE 2.86% RELENTLESS 0.53% SONY MUSIC SWEDEN 0.96% WARNER BROS 1.82% WILL WALKER 0.65% XL RECORDINGS 0.90%

ARTIST ALBUMS

Atlantic - 5.61% Virgin EMI - 22.40% Rhino (Warners) - 2.31% Polydor - 6.63% Island - 6.97% Warner Bros - 2.27% RCA Label Group - 2.67%

Others - 51.14%

6IX 7EVEN 0.51% ADTR 0.49% BAD SEED 7.29% BECAUSE MUSIC 1.48% BIG BROTHER 0.56% BMG 1.53% BOY BETTER KNOW 0.56% BOYS DON'T CRY 1.63% CAPITOL 0.66% CENTURY MEDIA 0.96% COLUMBIA LABEL GROUP 0.50% COOKING VINYL 0.56% DECCA 0.53% DOMINO RECORDINGS 0.51% EPITAPH 1.04% HOPELESS 0.68% PARLOPHONE 1.28% PEMA 2.05% RED BULL 2.12% SONY MUSIC CG 9.73% SURETONE 0.61% SYCO MUSIC 0.66% UMC 5.28% XL RECORDINGS 4.09%

YEAR TO DATE TOTAL MARKET SHARES RECORD COMPANY

SINGLES

Universal - 36.1% Sony - 24.8% Warner - 18.9% Others - 20.2%

XL Beggars 1.9% Ministry Of Sound Group 1.2% Because Music - 1.0% [PIAS] - 0.3% BMG - 1.0% Demon Music Group - 0.3%

ARTIST ALBUMS

Universal - 30.6% Sony - 18.3% Warner - 21.7% Others - 29.4%

XL Beggars 4.4% Domino Recordings 0.9% Demon Music Group 0.7% Cherry Red 0.5% BMG 2.3% Because Music 0.5% [PIAS] 0.7%

MUSIC Week

STREAMS

Universal - 37.4% Sony - 22.2% Warner - 18.1% Others - 22.3%

XL Beggars 2.1% Domino Recordings 0.7% Because Music 0.8% BMG 0.9% Ministry Of Sound Group 0.8% [PIAS] 0.7%

ALL ALBUMS

Universal Music - 32.7% Sony Music - 22.2% Warner Music - 17.7% Ministry Of Sound - 3.6% Demon Music Group - 0.8% XL Beggars - 3.2% Domino Recordings - 0.6% Cherry Red - 0.4% [PIAS] - 0.5% BMG - 1.9% Others - 16.4%

03

SINGLES

STREAMS

RCA Label Group - 13.7% Virgin EMI - 12.8% Island - 9.5% Polydor 7.7% Atlantic Records UK - 6.9% Columbia Label Group - 4.9% Warner Bros - 5.3% Parlophone - 4.1% Rhino (Warners) - 2.2% Syco - 2.8% Others - 30.1%

ARTIST ALBUMS

Virgin EMI - 9.4% XL Recordings - 3.5% RCA Label Group - 6.6% Polydor - 5.9% Island - 5.6% Atlantic Records 4.5% Rhino (Warner) - 8.6% Sony Music CG - 6.1% Warner Bros- 4.3% Decca - 3.9% Others - 41.6%

RCA Label Group - 11.9% Virgin EMI - 12.6% Island - 10.5% Polydor - 8.5% Atlantic Records UK - 7.8%

Columbia Label Group - 5.3% Warner Bros - 4.9% Parlophone - 3.6% Syco - 1.9% Others - 33.0%

SEPTEMBER 19

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