Music

Believe CEO accuses major record companies of lobbying streaming platforms to lower royalty rates for DIY artists

Are the major record companies trying to pressure music streaming services to pay DIY lower royalty rates than those artists received by established superstars?

According to recent interview with MBW.

We asked the French exec what he made of the argument that DIY artist-uploaded songs should receive a lower royalty rate on streaming services than tracks from well-known global stars.

His response was edifying.

“I know major record labels are pushing for lower rates for [DIY] artists, and I just don’t think it’s right; I think it’s wrong.”

Denis Ladegaillerie, Believe

“I know major record labels are pushing for lower rates for [DIY] artists, and I just don’t think it’s right; I think it’s wrong,” he told us.

Ladegaillerie added: “The reason major record labels are pushing for this is that they’ve been consistently losing market share for the past five years [due to the volume of releases coming out via DIY platforms].

“They’re trying to find ways of regaining that lost market share through higher value, but I don’t think it’s the right way to do it.”

[READ MBW’S FULL INTERVIEW WITH DENIS LADEGAILLERIE THROUGH HERE.]

Ladegaillerie’s accusations didn’t occur in a vacuum.

They followed a suggestion recently hypothesized by last monthMBW founder, Tim Ingham, recommended that some or all of the majors may soon pressure

The reason for that hypothetical scenario, he explained, is that the majors are facing an uphill battle for market share against the “oceans” of releases being uploaded to streaming services by independent artists each day.

Ingham said on the podcast: “For the major record companies, their dominance of streaming market share isn’t just important in terms of their revenues. Crucially, it also affects their leverage when they’re renegotiating licensing agreements with Spotify or distribution of between 30% and 40% of all new music today.

The majors are limited in their ability to compete with this volume.

an a told analyst on a Denis Ladegaillerie, Believe

Elsewhere in MBW’s interview with Ladegaillerie, the Believe CEO said: “I heard the expression that shuttered its DIY distribution in May and now is now invite-only.]

“In my view, there is a lesson here: Lauren Spencer-Smith signed to TuneCore, went to No.4 in the UK charts and was No.1 in four countries; LANDY in France was a TuneCore artist a year-and-a-half ago and was No.1 Music Business Worldwide

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