New research finds that musicians are losing millions due to the wrong allocation of UK royalties | Dance music

Electronic music artists, producers and songwriters stand to lose millions of pounds in lost royalties in the UK after their music appears in DJ sets, but the subsequent royalties are not distributed correctly, according to new research.

The Berlin-based Fair Play Initiative found that only 28% of the fees paid by the average UK nightclub are properly distributed to performers. More than £5.7 million is allegedly being misallocated by performing rights organisations, and paid to the wrong people.

“What we’re seeing in this industry is a fundamental imbalance,” says Ethan Holben, who led the project at Fair Play. “DJs can get paid handsomely for playing other people’s music, but producers whose tracks are played at clubs and festivals around the world often earn little or nothing. Many of them don’t even know their music is being played.”

Artists in genres such as R&B, rap and metal – all of which have their own nightlife venues – will also be affected and research suggests that independent and professional artists are likely to be hardest hit.

When detailed information about a particular DJ set’s setlist does not exist, rights organizations instead extrapolate data produced elsewhere, send staff to conduct in-person spot checks, or use radio playlists as a substitute. The exact details of these accounts are kept secret to prevent people from gaming the system.

Human rights organizations express confidence in these methods, but Fair Play estimates that 50% of these “like-for-like” payments are actually inaccurate, and are concerned that “small venues and underground scenes are subsidizing mainstream producers whose music appears on radio playlists,” citing a 2019 DJ Mag article that reported that 60% of songs played in Spanish clubs never make it to radio at all.

“The main issue is architecture,” Holben says. “Many collective management organizations [that distribute royalties] Being over 100 years old, the music industry is still geared towards bands and artists performing their own songs. The performing rights system and submission processes are still largely based on this as well, although electronic music is now one of the top genres in both listeners and festival bookings.

Other fees, such as those imposed on venues to play music, or on songwriters so they can claim royalties in the first place, can be similarly controversial. Last year, artists including Jesus, Mary Chin and Robert Fripp sued PRS Music, the UK’s largest performing rights association (which manages the distribution of royalties), over terms they claim unfairly benefit stadium- and stadium-sized acts. The Social Renewal Party said it would “vigorously defend” that lawsuit.

The Poverty Reduction Strategy has also cast doubt on the Fair Play results, claiming that “the major percentage is based on partial inputs.” The real problem, says the PRS, is a lack of data from venues and DJs about the music they play: “Without comprehensive records of the standard of tracks across all UK dance halls, any single figure is indicative, rather than definitive.”

Fair play statistics back this up. When venues install music recognition technology (similar to music recognition app Shazam), artists are paid with up to 90% accuracy, compared to the current UK-wide average of 36%. However, less than 7% of UK clubs have installed these systems: perhaps reflecting the very thin margins on which many operate, and the £20,000-a-year that medium-sized clubs will already pay to bodies such as the Poverty Reduction Team.

The cheapest and simplest solution — having DJs submit accurate setlists to performing rights associations — results in 95% payment accuracy. However, Fair Play found that only 5% of UK DJs do this regularly (despite 42% claiming this when asked as part of a global survey earlier in 2025). Live acts receive a fee to play their songs, so it is in their best interest to fill out PRS sheets after each gig. For the average DJ, who plays a set made up of 97% other people’s music, there is rarely any benefit beyond altruism.

“Most DJs don’t care much,” says Josh Doherty, who records as Posthuman and DJs under the I Love Acid banner. “It’s purely a matter of laziness and morality, especially the new generation of DJs who don’t even have to buy records anymore, so they’re not financially invested in that part of the industry.”

However, Doherty also underscores why reform is so badly needed: when three of his tracks were played regularly by another DJ during their warm-up set for a UK tour of a stadium dance show, Doherty ended up with a check from PRS for thousands of pounds. Ethan Holben says 75% of independent musicians lose money releasing music. “Imagine if they could break even.”