London
21 September 2017
Reporter: Barney Dixon

YouTube value gap persists, says IFPI


Licensed on-demand streaming continues to grow in popularity as record companies promote digital services, but the so-called YouTube value gap persists, according to a new report from the International Federation of the Phonographic Industry (IFPI).

The report, Connecting With Music, suggested that 45 percent of people engage in licensed audio streaming, up from 37 percent in 2016, compared to 40 percent of consumers accessing unlicensed music.

User upload services account for 55 percent all on-demand music streaming, with YouTube alone accounting for 46 percent.

But, the IFPI says YouTube and other user upload services are not returning fair value to the music community, despite their prevalence as the preferred method of streaming.

The IFPI says: “User upload services, such as YouTube, are heavily used for music, yet do not return fair value for this music to those investing in and creating it. This is a fundamental challenge for the music community which is campaigning for a legislative solution to this issue known as the ‘value gap’.”

More than 80 percent of YouTubers said they had used the service for music streaming in the past month, amounting to an estimated 1.3 billion users. YouTube is estimated to pay less than $1 to rightsholders per user, compared to $20 per user paid by Spotify, according to figures from the IFPI.

Francis Moore, CEO of the IFPI, says: “The value gap remains the single biggest threat facing the music world today and we are campaigning for a legislative solution.”

Earlier this month, music industry coalition musicFIRST accused Google of hiding behind its legal ‘safe harbour’ to make “billions selling ads around unlicensed copies of music”.

It said: “Music creators can accept much lower payments forced on them by Google, or their music will just end up on YouTube anyway, which has a very convenient government-granted safe harbour from copyright infringement.”

More news
The latest news from IPPro The Internet
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Delta claims "confusingly similar" domain
22 January 2018 | Minneapolis | Reporter: Barney Dixon
Delta Airlines has claimed 27 domains in a UDRP dispute at the Alternative Dispute Resolution Forum.
Brinks, Gilson & Lione elects new president
19 January 2018 | Chiacgo | Reporter: Barney Dixon
Brinks, Gilson & Lione has elected a new president to succeed James Sobieraj
TWiT sues Twitter for trademark infringement
18 January 2018 | California | Reporter: Barney Dixon
TWiT.tv, is suing Twitter for breach of contract, unfair competition and trademark infringement, stemming from a deal the two companies made in 2007
INTA wins in domain dispute
17 January 2018 | Minneapolis | Reporter: Barney Dixon
INTA has won a domain dispute at the Alternative Dispute Resolution Forum over inta2018.org
Akerman hires new partners
16 January 2018 | Los Angeles | Reporter: Barney Dixon
US law firm Akerman has strengthened its intellectual property and commercial litigation practices with the hire of two partners
Alibaba refutes Notorious Markets report
15 January 2018 | Hangzhou | Reporter: Barney Dixon
Alibaba has issued a point by point refutation against allegations levelled at its Taobao platform in the US Trade Representative’s 2017 Special 301 Out-of-Cycle Review of Notorious Markets
USTR targets Taobao in Notorious Markets review
12 January 2018 | Washington DC | Reporter: Barney Dixon
US Trade Representative Robert Lighthizer has revealed the findings of his office’s 2017 Special 301 Out-of-Cycle Review of Notorious Markets, including accusations against Alibaba’s Taobao ecommerce platform