German PRO GEMA to Lower ‘On-Demand’ Music Commission

Germany’s performance rights organization, GEMA, has announced it will reduce its commission on all “on-demand music distribution” from 10% to 7% by 2027.

The roll-out:

• The reduction will take place in stages, starting with a drop to 9% in January 2026.

• That drop alone will generate €2 million ($2.4m) annually for GEMA members.

• GEMA claims it will be the first organization to reduce admin expenses below 8% in the online sector when it reaches its 7% target at the start of 2027.

• The commission applies to streaming and download platforms including Spotify, Apple Music, Deezer and YouTube.

The reason:

• As per Music Business Worldwide, the reduced commission is a flow-on from GEMA’s investment in automated systems that handle the licensing and distribution process.

GEMA:

• GEMA represents over 100,000 German members, including composers, lyricists and music publishers.

• It also reps more than two million copyright owners globally.

• GEMA’s digital collections hit €310 million ($366m) in 2024, about 23% of the organization’s total revenue.

What they said:

• Thomas Theune, Director of Broadcasting/Online: “Thanks to our digital processes and fully automated IT systems, we’re already able to license and distribute more efficiently than ever. In turn, this means we can pass on even more money to our members. This is our mission as a modern collecting society – to place technology at the service of creatives.”