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Licensing Fees Introduced for Twitch DJs by Music Industry

by timesnow
06/06/2024
in Tech
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Licensing Fees Introduced for Twitch DJs by Music Industry
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In response to the copyright trouble that DJs on Twitch often face, the platform unveiled on Thursday a program permitting DJs to play a vast range of tracks within a newly established DJ Category. The aim is to give clarity on the usage of songs during livestreams. 

DJs are required to share a fraction of their profits.

To mitigate the risk of DMCA (Digital Millennium Copyright Act) takedown notices, which has been an ongoing nuisance for DJs on Twitch using prerecorded music in their sets, Twitch introduced this program. DJ channels have seen a significant increase on the platform, with growth of over 400% and 15,000 DJs earning from their content. DJs began to receive a heavy volume of music-related DMCA notifications from record companies in May 2020.

DJs participating in the program will need to allocate a portion of their streaming revenue to cover music rights. Twitch has partnered with major labels such as Universal Music Group, Warner Music Group, Sony Music, and Merlin representing independent labels to offer a broad spectrum of popular music. 

Twitch has not made public the specific fees DJs are obliged to pay. However, Twitch CEO Dan Clancy explained in a blog post that the cost will depend on the channel’s monetization model, meaning non-monetizing DJs are exempt from fees.

In a positive turn, Twitch is supporting DJs by covering 50% of royalty fees. A subsidy is also provided for existing Twitch DJs for one year, to help them transition smoothly into the program.

“Twitch is leading the way as the first major platform to create a permanent, safe space for DJs. We’re thrilled to promote and support these creators as they develop communities on Twitch and beyond,” Clancy stated. 

The introduction of the program is slated for later this summer. 

Twitch will make DJs pay a share of their revenue to the music industry.

“We have structured a deal where we will share revenue with the labels. It is not free… we’re going to split the costs,” says Twitch.#TwitchNews #TOSg pic.twitter.com/YndPV8JIcH

— Zach Bussey (@zachbussey) April 10, 2024

Information about the upcoming program was first revealed by Clancy in an earlier interview with TweakMusicTips on Twitch. 

Clancy mentioned, “Money will have to be shared with the labels. While free would be preferable for DJs, Twitch intends to split the cost however it emerges.”

Emphasizing the necessity of the program, Clancy adds, “It is vital for DJs to recognize that the existing situation on Twitch was not viable long-term, and we needed to find a solution to ensure a sustainable community.”

Later today at 2:30 pm ET, Twitch plans to host a livestream event with Clancy and DJ Jazzy Jeff to commemorate the new DJ category.


FAQs about Twitch DJs and Music Licensing

Why are Twitch DJs required to pay a licensing fee?

DJs now need to pay a licensing fee to compensate the music labels for the copyrighted music they play during livestreams to avoid DMCA takedowns.

How much do Twitch DJs have to pay for using copyrighted music?

The exact amount has not been disclosed by Twitch but it is based on a percentage of the DJ’s streaming revenue.

What happens to DJs who don’t monetize their streams?

DJs who don’t monetize their streams on Twitch are not required to pay any licensing fees under the new program.

Has Twitch made any arrangements to support DJs with this new fee structure?

Yes, Twitch is covering 50% of the owed royalties and is also providing a one-year subsidy for existing Twitch DJs.

When will the new DJ program on Twitch be implemented?

The new DJ program will launch later in the summer.

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