Deezer’s Payout Model Wins Over Critics As Wagram Sign Up

Deezer’s recently unveiled ‘artist-centric’ payouts model has garnered a range of responses from individuals and organisations within the independent music sector. While some aspects of the plan have been praised, concerns have been raised about potential adverse effects on smaller and emerging artists, as well as reservations about its co-design with Universal Music Group (UMG). However, France-based independent label Wagram Music has surprisingly signed an agreement with Deezer to participate in the new model set to launch this month.

Wagram Music’s president, Stephan Bourdoiseau, explained this decision by emphasising their commitment to reforming the traditional streaming revenue distribution model. It is worth noting that Bourdoiseau had recently co-authored a guest column with peers from Beggars Group, Secretly Distribution, and Because Music, cautioning that Deezer’s model, particularly when associated with a major music company like UMG, should undergo rigorous scrutiny by other rightsholders.

The swift change of stance by Wagram Music raises eyebrows, but Bourdoiseau acknowledged the room for improvement in the system, inviting stakeholders to seek optimizations. He emphasised their support for any similar initiative aimed at enhancing the current distribution model, fostering the value of music, and upholding competition rules, pluralism, and diversity.

Deezer’s CEO, Jeronimo Folgueira, welcomed Wagram Music’s decision, asserting that the new model would benefit all producers, both major and independent. However, the ongoing debate surrounding Deezer’s model underscores the complexities and sensitivities surrounding artist payouts in the streaming industry. Independent music sector stakeholders remain cautious, emphasising the need for transparency, fairness, and an inclusive approach in reshaping the revenue distribution landscape. The evolving dynamics in this sector warrant continued scrutiny as they have far-reaching implications for artists and labels alike.