Dutch music productions in the online market

On behalf of the Ministry of Education, Culture and Science (OCW), Dialogic, in collaboration with the Institute for Information Law (IViR), conducted research into obstacles and potential stimulation measures for Dutch music productions in the online market. This research originated from a motion in the Dutch House of Representatives requesting an exploration of whether an investment obligation or levy on audio streaming services could contribute to supporting the Dutch music sector.

Research Question and Methodology

The central questions of this research were:

1. What obstacles exist in the online music services market that may lead to an imbalance between the earnings for Dutch music creators and the earnings for online music services?
2. To what extent are Dutch music productions less visible or discoverable compared to international music productions?
3. What potential stimulation measures, within the European legal framework, can be imposed on online music services to promote Dutch music productions?
4. How might these measures impact the broader audio services market in the Netherlands?

To answer these questions, various research methods were utilised: an extensive literature review, in-depth interviews with stakeholders from the music sector, and an international comparison with countries such as France and Canada.

Findings

The research reveals that the online music services market is largely dominated by major international platforms such as Spotify, YouTube Music, and Apple Music. While Dutch music productions are generally widely available, their visibility is influenced by algorithms, playlists, and consumer preferences. The key obstacles in the online music services market are:

1. The most mentioned issue in the online music services market concerns the uneven distribution of revenues from a music piece, specifically the imbalance between creators and record companies.
2. It is often unclear how playlists are curated by platforms, yet these playlists are crucial for an artist's visibility.
3. The payment of licence fees by social media platforms to CMOs and/or record labels is often much lower than that of streaming platforms or even non-existent.
4. A fourth issue is the rise of AI-generated music. Various factors are at play, such as the extent to which AI-generated music on streaming services hinders music from 'real' artists. Additionally, there is a lack of transparency regarding how AI is trained.

Possible Policy Measures

The research proposes several policy measures to strengthen the position of Dutch music creators, including:

• Improving the income position of creators
• Increasing the visibility and discoverability of Dutch music
• Gaining control over AI and digital developments
• Strengthening the Dutch music industry

Conclusion

We conclude that a levy or investment obligation for streaming services is not an efficient economic and legal solution. Instead, we recommend focusing on targeted policy measures that contribute to a fair distribution of income, better support for artists, and a stronger infrastructure for the Dutch music industry. The research was presented to the Dutch House of Representatives on 17th March 2025. Read the relevant Chamber letter and Decision Note here.