The“ Value Gap” – Rapidly Progressing Obstruction to Music Industry Revenue Growth
Global music record industry is gradually growing out of the phase of economic anaemia triggered by digital revolution two decades ago( thanks to surge in music consumption through paid audio streaming services in the year 2016). For the first time since 1997, the industry has seen a growth as significant as of 5.9 %. While the overall picture is finally turning positive, the“ value gap” has emerged as a new roadblocker.
What is“ Value Gap”?
It is the enormous difference in value actually generated by the consumption of music digitally and the revenues earned by the music community there from. The root of the problem lies in the fact that millennials are taking biggest chunk of their music entertainment diet through user upload video streaming platforms like YouTube which have very low royalty payout structures and poor infringement control measures. In 2016, despite the fact that digital video
India: Recorded Music Industry Revenue( 2016)
Audio Streaming Video Streaming Others
streaming constituted the dominant manner of music consumption in India, it contributed a meagre 4 % of total recorded music industry revenue, whilst audio streaming services with a much smaller user base were responsible for 43.5 %. Global figures also show the similar trend.
Legal lacunae- Safe Harbour laws insulating intermediaries from liability
The growing value gap is primarily attributable to mammoth pirated content uploaded on platforms like YouTube which are earning billions by running ads around it, leaving copyright holders deprived of the economic benefits they deserve. These platforms hide behind the‘ safe harbour’ laws providing immunity to internet intermediaries from contributory / vicarious liability for infringement, so long as the infringing videos are removed by them on notification from the copyright owner. This“ notice and take down” procedure fails to serve the purpose as it is difficult for copyright owners to track so many infringing videos. Moreover, once they get 100 infringing videos taken down, 200 other videos with same infringing content re-emerge within next few hours.
In response to constant complaints, intermediaries have introduced some technical tools to automatically identify infringing content. For instance, YouTube provides for a digital fingerprinting system called“ Content ID” through which copyright owners may register reference content with YouTube- videos uploaded by third parties are then automatically compared against such content, looking for any matches. When a video matches, copyright owner gets the notice and may choose to block the video, mute it or monetise it by running ads against it. But such tools have also failed to deliver desired results due to serious technical flaws. In light of broad immunity from liability, it is hard to expect platforms like YouTube which thrive on infringement, to introduce really effective technological tools for tracking pirated content.
Need for a legislative fix
Legislative amendments are required to make the intermediaries accountable for the content they are offering or hosting, so that we have a fair digital marketplace. Notably, intermediaries no longer play a passive role in communication of user uploaded content to public. To illustrate, YouTube promotes content and optimises the presentation of it. Once you watch a video, you get suggestions for similar videos which show that the role is active. This dilutes the very basis on which the law providing immunity rests.
One option could be to do away with safe harbours, completely. Alternatively, the“ notice and take down” principle could be replaced with“ notice and stay down” so that intermediaries are at least obligated to prevent the infringing content once notified by the copyright holder, from re-emerging through other videos. While Australia is all set to exclude online platforms like Facebook; Google from safe harbour shield, it remains to be seen if India follows.
Author- Simrat Kaur is a Copyright and Trademark Attorney at“ The Endretta – IP Advocates and Solicitors”. The Endretta offers legal solutions across all areas of intellectual property including registration, management and enforcement of copyright, trademark and designs.
The Score Magazine
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