Brussels, 30^th May 2025,

The job of independent labels is to maximise remuneration for their featured artists and boost diversity. IMPALA and its members have a clear role as leaders on these questions, not only on behalf of the independent sector but also with a view to make the whole market more dynamic and inclusive.

A lot of work in this area has already been done, with concrete progress in key areas and multiple recommendations to achieve these basic aims. Recent studies show that artist revenues and contractual terms have grown and improved significantly and the importance of diversity as the foundation of a healthy music market is clear.

At the same time, counter factors are at play that have a huge impact. IMPALA is clear about what the barriers are and the opportunities to fix these. The gaps are offline as well as online. IMPALA’s role is to speak out about what is important, even if it means we don’t always agree with other parts of the music business.

As we close European Diversity Month, IMPALA presents its remuneration playbook* – a reminder of some of the basic components of a comprehensive strategy for decision makers to boost revenues and diversity. This is important as the independent sector accounts for 80% of all new musical releases in Europe today and is made up of thousands of micro, small and medium sized businesses, playing a key role in taking risks, boosting diversity and partnering artists in their careers. 

Europe has already led the way on a number of issues and key decisions need to be taken in the next months and years that will have a huge impact. IMPALA’s recommendations are about what can be done now at a political level on these issues. This is important if the cultural industries are to play their role in Europe’s growth strategy and IMPALA sees this as a fundamental part of the Culture Compass for Europe, which will establish a new ambition. We look to the EU and national governments to set out a clear pathway.

Helen Smith, IMPALA Executive Chair, commented: “We have always been clear that the job of independent music companies is to maximise remuneration for their featured artists and unlock the massive untapped potential of a truly diverse music ecosystem – today’s recommendations aim to do just that. We aim to inspire decision-makers to address the main gaps and obstacles offline and online, so we can achieve our full potential as an industry. What the EC decides now on issues such as AI and UMG’s acquisition of Downtown is critical, as well as on other priorities such as making sure we don’t transfer millions of performance monies outside of Europe. We see this as a key part of Europe’s cultural compass strategy.”

IMPALA builds on previous work such as the EU’s AI Act, the WIN Fair Digital Deals Declaration and various action plans including on streaming, first adopted in 2021 and updated in 2023, as well as on the European Parliament’s 2024 report on music streaming. Taking on board the need to look at developments offline as well as online and considering the latest changes to the music ecosystem, IMPALA sets out 12 recommendations to boost revenues and diversity in today’s music business:

1. Implement the EU’s AI Act properly to ensure specific consent, transparency, respect of rights and maximise licensing opportunities (see more here & here)
2. End the transfer of €125 million per annum of European performance and broadcast monies to third countries which do not have these basic rights (see more here)
3. Fight dilution of revenues through fraud and piracy as well as fix value gaps such as TikTok and other “moment economy” services not paying properly, which are together costing the global music industry billions every year (see more here)
4. Stop de-monetisation and other measures on streaming services which create a two-tier streaming business (see more here & here)
5. Support modern digital royalty rates and other proposals in IMPALA’s streaming plan to test different royalty allocation models (see more here)
6. Block UMG/Downtown and further consolidation in the music sector, to ensure labels and artists have an open, diverse and competitive music market (see more here, here & here)
7. Establish a comprehensive fiscal and social security status for small cultural businesses, artists and other cultural workers (see more here)
8. Implement copyright directive remuneration provisions in full as supported by IMPALA during negotiations (see more here & here)
9. Oppose measures that cut across labels’ ability to maximise artist revenues such as so-called “equitable remuneration” (see more here, here & here)
10. Adopt tax credits and better finance options to support labels as artist partners and risk takers (see more here)
11. Ensure digital and other services using music are obliged to respect collective licensing solutions like Merlin (see more here & here)
12. Boost discoverability and diversity on streaming services to improve visibility of European repertoire (see more here)

*This initiative is part of IMPALA’s 2025-2028 network programme co-funded by the European Union. Views and opinions expressed are however those of IMPALA only and do not necessarily reflect those of the European Union or Creative Europe. Neither the European Union nor the granting authority can be held responsible for them.