European Copyright Society Says Performer ER on Streams, Like Introduced in Belgium, Is a “Lawful Mechanism Under EU Copyright Law”

Why It Matters

A ruling in favor of streaming ER would force labels and platforms to adjust licensing models, potentially increasing payouts to performers and altering the balance of power in the European music market.

Key Takeaways

• Belgium's 2022 law grants performers ER on streaming platforms
• EU courts will decide legality of streaming ER under EU directive
• Labels and services fear higher payouts and added administrative burden
• Collecting societies could channel royalties directly to session musicians
• ECS argues streaming ER reallocates revenue without double payment

Pulse Analysis

The 2019 EU Copyright Directive introduced a broad entitlement for performers to receive "appropriate and proportionate" remuneration when their recordings are exploited. Belgium chose to operationalise this clause through a dedicated streaming equitable remuneration (ER) scheme in 2022, positioning itself as a test case for the continent. By linking ER to the same usage right that streaming services already license, Belgium aims to close the long‑standing gap where session musicians and non‑featured performers earn nothing from digital plays. This approach contrasts with the traditional model where royalties flow solely through record labels and distributors.

Industry stakeholders have reacted sharply. Major and independent labels argue that an additional ER layer will inflate their cost base and complicate existing licensing agreements. Streaming platforms, while technically able to deduct ER payments from label fees, warn of higher total outlays and the administrative overhead of dealing with multiple collecting societies. For performers, especially session musicians, the scheme promises a direct revenue stream that could supplement or replace advances that often go unrecovered. Collecting societies such as PPL in the UK would see expanded roles, handling both broadcast and streaming payments, potentially reshaping their revenue models.

The ECS paper counters opposition by emphasizing that streaming ER does not constitute a "double payment" but a reallocation of the same overall revenue pool. It separates the exclusive licensing right from the remuneration right, arguing that both can coexist without infringing on each other. The upcoming EU court hearings will test this legal framing against the objections of labels and platforms. A favorable ruling could set a precedent, encouraging other EU members to adopt similar streaming ER mechanisms, thereby standardising performer compensation across Europe and addressing longstanding bargaining imbalances.