YouTube Owes Billions To Music Stars, New Copyright Vote Impacts The Video Streaming Firm

The European Parliament voted in favor of the music industry over the new copyright legislation. This legislation will enforce YouTube to pay billions of dollars to music artists and labels for users watching music videos on its platform.

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YouTube Owes Billions To Music Stars
YouTube Will Need To Pay Billions To Music Artists & Labels If New Legislation Becomes Law

Music has a power to influence human lives. It connects unexplored, unintended, and unimagined corners of the heart and soul along with taking humans to the new realms of reality. The music composers must be credited for taking us to the tour of emotions and feelings. They should be getting fairly compensated for putting their work on various platforms for people to access and revel into it. There are various mediums that allow users to listen and download music for free. While some of the platforms pay minimum fees to the record label or artists. From past few years, the musicians and producers complained that the leading video streaming service platform YouTube does not provide proper legal protection to musicians or labels. Moreover, there is a “value gap” between what YouTube is paying and the true worth of the music. This concern needed to be addressed.

Recently, the European Parliament voted in favor of the music industry over the new copyright legislation. This legislation will enforce the video streaming firm to pay billions of dollars to music artists and labels for users watching music videos on its platform. These copyright laws will be adopted, and YouTube needs to seek the license for music videos. Be it Beyoncé, Lady Gaga, Drake, Ed Sheeran, or any other artist who has been struggling to make ends meet by producing music. Everyone will be getting paid more than they been paid already.

“The importance of today’s vote cannot be overstated; this proposal is a once-in-a-generation opportunity to create a new balance in the online world,” said Helen Smith, the executive chair of the European music body Impala, which represents labels behind acts including Adele, Arctic Monkeys, and Franz Ferdinand. “It is about copyright and making sure creators and their partners get a fair share of the value they create.”

According to the estimations, there are nearly 1.3 billion users who watch videos on YouTube regularly. The firm paid $856 million (€738 million) in royalties to music labels in 2017. This states that it paid nearly 67 cents per user. In the U.K., artists and record labels gained more royalties from the sale of 4.1 million vinyl records as compared to the 25 billion music videos watched on the red-button platform last year. On the other hand, earnings from 272 million music fans who availed ad-supported services such as Spotify, were $5.6 billion or nearly $20 per user each year.

This is one of the landmark moments of the legal affairs committee. The lead committee has been subjected to lobbying by the music industry and tech firms for past 18 months. Moreover, this legislation will face more challenges before it becomes a law. The committee has been voted 15 to 10 to implement the controversial article 13. It is estimated that the challenge will be launched by the members of the European Parliament who opposed it. After the challenge, the entire parliament will be subjected to vote to make the final vote on the implementation of the legislation. The vote will take place in the month of July. Once the vote is passed in favor of the music industry, artists and labels will be get paid by YouTube.

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