Meeting with Fabian Hidalgo (FACIR), MEP Estelle Ceulemenans and Christophe Van Vaerenbergh (PlayRight CEO)

In an era where technology is shrinking the world, Europe risks losing a vital aspect of its identity: its cultural diversity. European artists and filmmakers striving to maintain their place in an increasingly globalised industry face a perfect storm of declining investments, dominant streaming platforms, and legal rulings that weaken their rights. The pressing question is: how can Europe safeguard its cultural wealth against the threats of commercial interests and political negligence?

A Downward Spiral for European Artists

For musicians and actors, recordings are the most direct way to share their art with a broad audience. However, the reality behind these recordings is becoming increasingly concerning. In most EU member states, cultural funding has decreased over the past decade, remaining well below 1% of GDP. In the music sector, major players like Sony, Warner, and Universal have closed various regional offices, investing minimally in local repertoires. In the audiovisual sector, budget cuts at public broadcasters and declining advertising revenues at commercial stations have led to fewer productions.

Meanwhile, streaming platforms such as Spotify and Netflix have a firm grip on the distribution of music and films. Music streaming alone accounts for 68.3% of global music revenue, yet local artists struggle to gain fair exposure. Spotify playlists are curated by staff outside the regions they represent, resulting in limited visibility for, for example, Belgian artists. Additionally, algorithms dictate which music or films users are presented with, favouring mainstream international content over local talent.

Legal Obstacles: Artists Cornered

European artists face not only commercial challenges but also legal headwinds. Neighbouring rights, initially designed to grant artists a fair share in the commercial success of their work, are being increasingly eroded. A significant turning point came in 2020 with the RAAP ruling by the Court of Justice of the EU (CJEU). This judgment effectively abolished the principle of reciprocity, allowing American artists to receive EU rights income without European artists enjoying the same rights in the US. Consequently, an estimated €125 million flows annually from the EU to the US without significant return.

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The Belgian government attempted to secure a collective remuneration right for artists through new legislation, but major tech companies like Spotify and Google immediately appealed to the Belgian Constitutional Court. This led to 13 preliminary questions being referred to the CJEU in Luxembourg, potentially setting a precedent for the entire EU. If the platforms prevail, fair compensation for artists across the Union is at risk.

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The European Dimension: A Shared Problem

This issue is not confined to a single country. In France, the government mandates that radio stations play a minimum number of French-language songs to protect cultural diversity. Elsewhere in Europe, there is little regulation to support local talent. The dominance of American streaming platforms, combined with weak European legislation, is leading to a situation where European artists and independent producers are losing market share.

The EU attempted to protect artists with the 2019 DSM Directive, but lobbying by major international players has ensured that the legislation largely depends on contractual negotiations. This means individual artists have little to no bargaining power against giants like Spotify and Netflix.

Time for Action: How Can Europe Respond?

If Europe wishes to preserve its cultural diversity, concrete measures are necessary. The EU could implement a collective remuneration right for artists, ensuring fair compensation for the online exploitation of their work. Additionally, the EU could revisit the RAAP ruling and reintroduce reciprocity, so European artists are no longer financially disadvantaged compared to their American counterparts.

Furthermore, consideration should be given to regulations that require streaming platforms to fairly represent local music and audiovisual productions. Imposing quotas on streaming services, similar to those in radio, could be a way to make local content more visible.

Conclusion

The battle for European cultural diversity is not yet lost but urgently requires political action. If Europe does not resist the economic and legal pressures from international players, it risks exchanging a rich cultural tradition for a homogenised offering dictated by algorithms and profit motives. Now is the time to unite artists, producers, and policymakers to ensure a future where European music and film not only survive but flourish.