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wo related themes have dominated music
industry discussions and reporting over the last
couple of years. From industry conferences at
Canadian Music Week and South by Southwest to
reports by the BBC and New York Times, there has
been jubilation over revenue growth. Subscription
streaming services like Spotify are credited with
fueling a 5.9 per cent worldwide growth for the
recorded music industry in 2016, which is the largest
year-over-year increase since IFPI began tracking
the market. In Canada, the growth was even more
dramatic at 14.8 per cent thanks to streaming revenues
38 • C A N A D I A N M U S I C I A N
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more than doubling. On the flip side, though, is fretting
and even outright anger over the paltry royalties the
largest online service, YouTube, pays music rights
holders.
Many have not been shy about their feelings, with
Metallica’s manager, Peter Mensch, even saying in a
BBC Radio 4 documentary last year that YouTube is “the
devil” and, “If someone doesn’t do something about
YouTube, we’re screwed. It’s over. Turn off the lights.”
Maybe a bit melodramatic, but the point is clear and
widely shared: YouTube’s current business model is a
problem for the music industry. But how is it a problem,