More Than 700 Indie Labels Unite in “Fair Digital Deals Declaration”

You may have already heard that there is some contention around Youtube’s upcoming streaming plans as it pertains to indie artists.  The bottom line is the streaming plans favor major labels, not indie labels…and indie labels are not liking this inequity one bit.  As a result, more than 700 indie labels (including Beggars Group, Epitaph, and Sub Pop among others) decided to unite in a “Fair Digital Deals Declaration” to get more equity with streaming and digital sales.

According to the music industry organization Worldwide Independent Network (WIN), the document was created to fix inequities in music licensing deals, and this would include minimum revenue guarantees and  payouts covering unshared compensation.

WIN communicated that labels need to work together because “a pattern has emerged” where online music services favor major companies over independent companies and artists.  The majors are getting benefits that indies are not e.g. upfront money or a financial stake in the company beyond licensing music to their service.  The declaration communicates that independent labels will share benefits with artists and will not take money unrelated to the artists.

It also addresses five specific concerns:

1) Accounting for the upfront money unrelated to music sales
2) Transparency in explaining royalty statements
3) Encouraging better standards from digital services with regard to using and monetizing music
4) Supporting artists who oppose unauthorized use of their music and supporting the role of independent labels
5) A manifesto that details indie labels opposition to major labels consolidation (this brings the majors even more power), and indies will look for new commercial opportunities for music releases etc.

Indie musicians and labels have a voice that cannot be ignored.  How do you think Youtube and the major labels will respond to these concerns?