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'What if that metal fan only listened to Metallica, yet still 10% of that subscriber’s revenue went to Katy Perry?' It is not a hypothetical question. It's actually how payments to rightsholders are calculated by Spotify, Apple Music and all other music streamers. But Mark Mulligan discovered that rival Deezer is exploring a radical shift that some believe would divide revenue more fairly.

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Guest post by Mark Mulligan of MIDiA

EXCLUSIVE: One of the great, though less heralded, successes of streaming in 2016 was keeping the lid on artist angst. Previous years had been defined by seemingly endless complaints from worried and angry artists and songwriters. Now that torrent has dwindled to a relative trickle. This is largely due to a) a combination of artist outreach efforts from the services, b) so many artists now seeing meaningful streaming income and c) a general increased confidence in the model. Despite this though, the issues that gave creators concern (eg transparency, accountability) remain largely in place. The temptation might be to simply leave things as they are but it is exactly at this sort of time, when stakeholders are seeing eye to eye (relatively speaking at least), that bold change should be made rather than wait for crisis to re-emerge. It is no easy task fixing a plane mid flight. So it is encouraging to hear that Deezer is looking to change one the key anomalies in the streaming model: service centric licensing.

Service Centric Licensing

Currently streaming services license by taking the total pot of revenue generated, dividing that by the total number of tracks streamed and then multiplying that per stream rate by the number of streams per track per artist. Artists effectively get paid on a share of ‘airplay’ basis. This is service centric licensing. It all sounds eminently logical, and it indeed it the logic has been sound enough to enable the streaming market to get to where it is today. But is far from flawless. Imagine a metal fan who only streams metal bands. With the airplay model if Katy Perry accounted for 10% of all streams in a month, the 10% of that metal fan’s subscription fee effectively goes towards Katy Perry and her label and publisher. Other than aggrieved metal fans, this matters because those metal bands are effectively seeing a portion of their listening time contributing to a super star pop artist. To make it clearer still, what if that metal fan only listened to Metallica, yet still 10% of that subscriber’s revenue went to Katy Perry?

'What if that metal fan only listened to Metallica, yet still 10% of that subscriber’s revenue went to Katy Perry?'

Currently streaming services license by taking the total pot of revenue generated, dividing that by the total number of tracks streamed and then multiplying that per stream rate by the number of streams per track per artist. Artists effectively get paid on a share of ‘airplay’ basis. This is service centric licensing. It all sounds eminently logical, and it indeed it the logic has been sound enough to enable the streaming market to get to where it is today. But is far from flawless. Imagine a metal fan who only streams metal bands. With the airplay model if Katy Perry accounted for 10% of all streams in a month, the 10% of that metal fan’s subscription fee effectively goes towards Katy Perry and her label and publisher. Other than aggrieved metal fans, this matters because those metal bands are effectively seeing a portion of their listening time contributing to a super star pop artist. To make it clearer still, what if that metal fan only listened to Metallica, yet still 10% of that subscriber’s revenue went to Katy Perry?

User Centric Licensing

The alternative is user centric licensing, where royalties are paid out as a percentage of the subscription fee of the listener. So if a subscriber listens 100% to Metallica, Metallica gets 100% of the royalty revenue generated by that subscriber. It is an intrinsically fairer model that creates a more direct relationship between what a subscriber listens to and who gets paid. This is the model that I can exclusively reveal that Deezer is now exploring with the record labels. It is a bold move from Deezer, which though still the 3^rd ranking subscription service globally has seen Spotify and Apple get ever more of the limelight. While Deezer will undoubtedly be hoping to see the PR benefit of driving some thought leadership in the market, the fact it must find new ways to challenge the top 2 means that it can start thinking with more freedom than the leading incumbents. And a good idea done for mixed reasons is still a good idea.

Honing The Model

'it could penalize some indies'

Deezer has had encouraging if not wildly enthusiastic feedback from labels, not least because this could be an operationally difficult process to implement. The general consensus among labels I have spoken to is cautious optimism and a willingness to run the models and see how things look. When I first wrote about user centric licensing back in July 2015 I got a large volume of back channel feedback. One of the key concerns was that the model could penalize some indie labels as fans of their acts could be more likely be music aficionados and thus listen more diversely and more heavily. This could result in the effective per stream rate for those fans being relatively low. By contrast, a super star pop act might have a large number of light listeners and therefore higher effective per stream rates.

The truth is that there is not a single answer for how user centric licensing will affect artists and labels. Because there are so many variables (especially the distribution of fans and the distribution of plays among them) it is simply not possible to say that a left field noise artist will do worse while a bubble gum pop star will do better. But in some respects, that shouldn’t be the determining factor. This is an intrinsically more transparent way of paying royalties, that is based upon a much more direct relationship between the artist and their fan’s listening. There may well be some unintended consequences but ultimately if you want fairness and equality then you don’t pick and choose which fairness and equality you want.

If Deezer is able to persuade the labels to put user centric licensing in place, it will be another sign of increasingly maturity for the streaming market. Streaming drove $1bn of revenue growth for the recorded music business in 2016, without it the market would have declined by $1bn (due to revenue decline elsewhere). Streaming is now a monumentally important market segment and there is no better time to hone the model than now. User centric licensing could, and should, be just one part of getting streaming ready for another 5 years of growth. Deezer might just have made the first move.

International Women’s Day: Female artists represent less than 10% in some key genres, new Deezer data reveals.

• Deezer’s global streaming data shows just 4% of top 100 electronic artists are female, with only 7% in hiphop and rock
• New “Women’s Voices” initiative helps champion female musicians with exclusive Originals Sessions, curated playlists and shareable facts and data on women in the industry

Female artists represent a small proportion of the top 100 charts for electronic, hiphop and rock music. New data from global audio streaming service,Deezer, reveals that just 4% of the top 100 streamed electronic artists are women. Hiphop (7% of the top 100) and rock (also 7%) continue to fall short when it comes to gender diversity.

Deezer wants to help shine a light on the many challenges women still face in the music industry ahead of International Women’s Day. Highlighting the data* and launching our new exclusive women’s content series is part of our work to consciously support female artists. Pop is the most diverse genre on Deezer today, with 42% of the top global streamed artists being women. However, it still falls short of a 50/50 gender split.

Percentage of female artists in top 100 songs of key genres:

1. Pop – 42%
2. R&B – 39%
3. Soul – 26%
4. Alternative – 15%
5. Country – 15%
6. Jazz – 14%
7. Classical – 11%
8. Hiphop – 7%
9. Rock – 7%
10. Electronic – 4%

Starting from March 8th, Deezer’s users will find valuable insights in the app. This will include information around some of the issues around female representation in the music industry, plus interesting facts about female artists. Swipeable cards will reveal hard facts based on real streaming data. This includes how last year there were three times less women than men in Deezer’s top 100 songs. All of this is of course easily shareable by music fans who want to be part of this important conversation.

Across March, Deezer will launch a new “Women’s Voices” collection with Originals Sessions and curated playlists to help support female artists this International Women’s Day. The Originals Sessions lineup includes Birdy’s rendition of “A Case Of You” by Joni Mitchell and The Staves performing “Cloudbusting” by Kate Bush. LP performs “Hello” by Adele, while Fousheé gives us “Drew Barrymore” by SZA. Later in the month, Dodie will also release a special cover of “Oh, What A World” by Kacey Musgraves.

Deezer’s new “Women behind the music’” playlist series will also promote the songwriters, producers and musicians who wrote, produced or performed on international hits. Each woman will have her own playlist that features some of the most known tracks they contributed to. Meet the hugely talented artists including Tayla Parx, Julia Michaels, Diane Warren and WondaGurl who are behind your favorite tracks by Ariana Grande, Dua Lipa, BTS, Selena Gomez, Justin Bieber, Linkin Park, Aerosmith, Bon Jovi, Jay-Z, Drake and Rihanna.

Electronic music will also get a prominent place on the channel with a “100%” playlist series to champion female electronic music artists. In addition, global female stars like Celine Dion, Sia, Olivia Newton-John and Sharon Van Etten have created exclusive playlists for our high fidelity listeners. The playlists, called “HiFi Gold”, include tracks that sound supreme in FLAC quality.

Female podcast creators and hosts will also have a dedicated place on the channel. Fans can enjoy a selection of shows across a huge variety of subjects like “Therapy for Black Girls”, “Woman’s Hour” and “The Guilty Feminist.”

“We all know the diversity issues in the music industry and how much work still needs to be done. Women are not only under-paid, they’re also under-streamed, and represent less than 20% of listening in over half of our most popular genres. We want to champion female artists and give them opportunities to shine on our platform. That’s why the “Women’s Voices” collection will have a permanent home on Deezer moving forward,” said Kim Weaver, Deezer’s Head of Global Music Programming.

You can help support female artists and content creators by heading to the “Women’s Voices” Collection on Deezer from 8th March.

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The top 20 most streamed international women globally of 2020 were:

1. Billie Eilish
2. Dua Lipa
3. Lady Gaga
4. Ariana Grande
5. Aya Nakamura
6. Tones and I
7. Rihanna
8. Beyoncé
9. Sia
10. Taylor Swift
11. Doja Cat
12. Ava Max
13. Céline Dion
14. Anitta
15. Katy Perry
16. Shakira
17. Adele
18. Lana Del Rey
19. Selena Gomez
20. Alicia Keys

The top 20 most streamed international tracks by women globally of 2020 were:

1. Tones and I – Dance Monkey
2. Dua Lipa – Don’t Start Now
3. Billie Eilish – bad guy
4. Doja Cat – Say So
5. Dua Lipa – Physical
6. Nea – Some Say
7. Billie Eilish – everything i wanted
8. Dua Lipa – Break My Heart
9. Ava Max – Kings & Queens
10. Lady Gaga – Rain On Me
11. Aya Nakamura – Jolie nana
12. Billie Eilish – lovely
13. Lady Gaga – Stupid Love
14. Aya Nakamura – 40%
15. Cardi B – WAP (feat. Megan Thee Stallion)
16. Anitta – Combatchy (feat. MC Rebecca)
17. Ava Max – Salt
18. Sia – Cheap Thrills (feat. Sean Paul)
19. Ariana Grande – 7 rings
20. BENEE – Supalonely

Our top 20 most streamed podcasts by female hosts and creators in 2020 were:

1. Happy Mum, Happy Baby
2. About Race with Reni Eddo-Lodge
3. No Limits with Rebecca Jarvis
4. The Receipts Podcast
5. Women Like Us
6. The Guilty Feminist
7. My Favorite Murder with Karen Kilgariff and Georgia Hardstark
8. Girls Gotta Eat
9. 2 Dope Queens
10. Oprah’s SuperSoul Conversations
11. Encyclopedia Womannica
12. Chasing Cosby
13. Joyce Meyer Radio Podcast
14. The High Low
15. Katie Piper’s Extraordinary People
16. Feminists Don’t Wear Pink
17. Caliphate
18. The History Chicks
19. On Being with Krista Tippett
20. Woman’s Hour

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