Streaming platforms like Spotify, Soundcloud, Youtube, Pandora, SiriusXM and Netflix are teaming up with the major labels of Sony Music, Universal Music and Warner Music to establish a new platform that will revolutionize how royalties are paid, according to Pitchfork.
Heading up the new campaign is Berklee College of Music's Institute for Creative Entrepreneurship (BerkleeICE) and MIT Media Lab, who will run the Open Music Initiative (OMI). Their goal is to on build an open-source platform to keep track of music creators and rights owners, to ensure they are compensated for the streaming of their digital music.
Over 50 media platforms have joined the major labels and streaming services “to create a shared digital architecture for the modern music business,” says OMI co-founder Panos Panay.
Panay also went on to say: “We believe an open-sourced platform around creative rights can yield an innovation dividend for creators and rights holders alike.”
Since the streaming platforms began to take over the music industry, paying artist royalties has long been a focal point of discussion. Numerous lawsuits have been issues by artists claiming they have not been payed their due, while the streaming giants continue to grow. This new initiative looks to address those issues to ensure that all content creators get compensated fairly.