NYC Supports Streaming Reform, AI Consent Rules Called ‘Unrealistic’, and YouTube Royalty Payouts Hit $12B
How The Music Business Works - Issue #13
May 29, 2025
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On to the news:
This week, the NYC Council considers backing a 1¢-per-stream bill for musicians. Nick Clegg warns that requiring artist consent for AI training could hinder the UK’s AI industry. New data highlights streaming’s growing impact on artist earnings, with YouTube surpassing $12B in Content ID payouts and Spotify paying €1.7B to EU artists in 2024, alongside reaching 100 million subscribers in the region. Meanwhile, South Korea’s digital music market continues its rapid growth.
Let’s get into it.
NYC Council Set to Vote on Living Wage for Musicians Act
The New York City Council is set to vote on Resolution 368, backing the federal Living Wage for Musicians Act—a bill that would establish a minimum payout of one cent per stream. Led by the United Musicians and Allied Workers (UMAW), the campaign aims to address growing concerns over low artist compensation in the streaming economy, where musicians often earn just $0.0033 per stream despite platforms generating billions in revenue. The act proposes a new royalty structure that taxes non-subscription streaming revenue and adds a fee to subscriptions, distributing funds through a non-profit to artists based on their stream counts. It also includes a cap on monthly payouts per track to ensure broader equity among artists. With over 14,000 working musicians in NYC and rising concern over AI’s role in content monetization, the resolution reflects mounting support for fairer compensation in the digital music age.
Former Meta Exec: It’s ‘Not Reasonable’ for Artists to Opt Out of AI
Former UK Deputy Prime Minister and Meta executive Sir Nick Clegg has warned that requiring tech companies to ask artists’ permission before using their copyrighted material to train AI would “basically kill the AI industry” in the UK. Speaking at the Charleston Festival, Clegg argued that AI systems are already training on vast amounts of online data and that asking for permission first is “implausible” given the scale of content involved. While he acknowledged that artists should have the ability to opt out, Clegg emphasized that requiring preemptive consent would be technologically unfeasible and put the UK at a global disadvantage. Meanwhile, UK Parliament recently rejected a proposed amendment that would have required companies to disclose when and how copyrighted works were used to train AI models.
YouTube has paid out a cumulative $12 billion to rightsholders through Content ID as of December 2024, according to its new Copyright Transparency Report. Over 90% of claims were monetized, and 99% were made via automated detection. The platform now has 125 million Music and Premium subscribers, with total creator payouts (including ad and subscription revenue) surpassing $70 billion over the past three years. Despite criticism over per-stream rates and Content ID access, the data highlights YouTube’s growing dominance in music monetization, especially compared to rivals like Spotify.
KOMCA report hails growth of digital music market in South Korea
A new report from the Korea Music Copyright Association (Komca) has outlined the growth of South Korea’s digital music sector. It notes that this market nearly doubled in size from around $700m in 2019 to $1.32bn in 2023. The report predicts that this growth will continue, with the market reaching just under $1.7bn by 2027 – $1.67bn of which will come from streaming. The report notes that while YouTube Music is still the top streaming service in South Korea, “Spotify’s recent launch of a free subscription plan in October has led to a significant increase in its monthly active users, further intensifying the market share battle between global and domestic platforms”.
Spotify reaches 100 million paying subscribers across Europe
Spotify’s latest Loud & Clear report reveals that EU artists generated over €1.7 billion in 2024—a 15% increase year-on-year, nearly double 2020’s total. The platform now has 100 million paying subscribers in Europe, and EU artists were streamed 351 billion times globally. Key highlights include strong growth for non-English language music (57% of royalties), a rise in female artist streams (up 83% globally in four years), and expanding reach beyond borders—especially in markets like France, Germany, Belgium, and Denmark. Spotify says the data reflects its ongoing commitment to transparency and European creator growth.