DJs to Share Earnings with Record Labels
DJs upcoming changes on earning on the platform. Dan Clancy (Twitch CEO) disclosed that Twitch is nearing an agreement that would see DJs and the platform itself funnel a portion of their earnings to record labels. This move is designed to harmonize the economics of streaming music on Twitch.
Under the proposed “structure,” Twitch will shoulder some of the financial obligations to music rights holders. “It doesn’t come for free” Clancy noted, emphasizing that the costs will be split. This strategic shift aims to alleviate the burden of DMCA takedown notices for DJ streamers, potentially fostering a more sustainable revenue-sharing model.
Twitch will soon require DJs to share part of their revenue with the music industry.
“We’re going to have a structure, where we are going to have to share money with the labels, it doesn’t come for free… we’re going to split whatever the cost is.”#TwitchNews #TOSg pic.twitter.com/YndPV8JIcH
— Zach Bussey (@zachbussey) April 10, 2024
The heart of the matter lies in Twitch’s plans to actively monitor DJ streams. Clancy hinted at a robust tracking system poised to scrutinize every beat dropped, ensuring that earnings from streams featuring copyrighted tracks are transparently shared with the appropriate labels. This scrutiny, however, will be exclusive to DJ streams, distinguishing them from other content types on the platform that follow different copyright rules.
While Twitch already employs a content recognition system to manage copyrighted audio in VODs and clips, Clancy’s advice to DJs is clear: mute pre-recorded videos to sidestep financial penalties.
Historically, Twitch has compensated record labels for the use of copyrighted music, a practice confirmed by technology news outlet Engadget. The upcoming changes could deepen this financial relationship, as the platform seeks to develop a more lucrative framework for all stakeholders involved.
Zach Bussey, a noted streaming and tech journalist, commented on the potential impact of these changes, suggesting that they could provide DJs with greater clarity and opportunities for monetization, if implemented fairly.
Yet, not all responses have been positive. Some users have voiced concerns over the financial implications for DJs, who already find themselves lower on Twitch’s earnings ladder. Calls for a more equitable solution are growing louder within the community.
In 2020, Twitch faced criticism from the RIAA and Industry Groups over unlicensed music use. Despite disputes, these incidents underscore the complexities of music rights in the digital age. Twitch, owned by Amazon, continues to navigate these challenges, striving for harmony between artists, labels and streamers.
This development marks yet another chapter in Twitch’s intricate dance with music licensing, a topic that continues to resonate across the platform, influencing everything from bedroom DJ raves to full-scale electronic music productions streamed to global audiences.
For more insights, the full interview with Twitch CEO Dan Clancy is available online, alongside Engadget’s comprehensive report.
