Record store shelves open at record stores across the world
Record stores have opened across Europe and the United States as record labels struggle to meet demand for new music.
The European Union announced on Friday that it would start collecting royalty payments for record labels from new releases.
The new payments, which would be made after a new release has been certified by independent labels, will amount to roughly 6 per cent of the album’s value, which could mean as much as $6.5m to $7m for an album released in 2017, according to the EU.
“This represents the first step towards an industry-wide solution,” said the EU’s chief copyright commissioner, Jose Manuel Barroso.
“With this agreement, the European Commission and the European Union will work together to support the industry, encourage the creation of new records, and help to bring about a new era of the music industry.”
The EU has agreed to collect royalty payments of 6.5 per cent from new music releases in 2017 and 6.25 per cent for any new release released in 2018.
The EU said it hoped to collect around €200m ($257m) from this arrangement.
However, the commission has said it has not been able to collect the payments as required under EU copyright law.
It also said it had not yet received payment from major labels, including Sony, Universal Music Group, Warner Bros and Universal Music Publishing.