Electronic Music’s Hidden Economy / Who Really Gets Paid?

Report on how royalties are handled in UK nightclubs.

In November 2025, Fair Play: Electronic Music Royalties Under the Microscope – UK made its official debut, presenting the first truly independent and comprehensive look at how royalties are handled in UK nightclubs. The study, a collaboration including DVS1, combined six months of research with a global survey of 338 industry stakeholders. The findings are stark: a huge portion of the value generated by producers and DJs never reaches them. Every year, around £5.7 million in club royalties are misallocated, with only 36% landing in the hands of the rightful creators.

In September 2024, Aslice, the revenue-sharing platform dreamed up by Zak Khutoretsky (aka DVS1) shut down. Born in 2022 to fix a broken system, it let DJs share a slice of their earnings with the producers behind the tracks they played. But even in its short life, Aslice exposed the cracks running through electronic music: a royalty system designed for opacity, not fairness.

Rights organizations still struggle to track what actually hits club floors. Many rely on analog methods or incomplete radio playlists. The result: millions vanish into the pockets of a few established names, while the producers generating the culture are left empty-handed. Unreleased tracks (the lifeblood of underground scenes) are invisible to the system entirely, widening the gap between creative output and actual reward.

Out of this chaos emerges Fair Play. Launched in November 2025, its first report, Fair Play: Electronic Music Royalties Under the Microscope – UK, charts the scale of the crisis. Every year, £5.7 million in club royalties are misallocated. Only 36% reaches the rightful artists. In a nightlife industry pulling in £2.4 billion from clubs, festivals, tours, and hospitality, just £3.2 million of £11.25 million flows back to creators.

Technology could fix this, but adoption is minimal. Only 7% of clubs use Music Recognition Technology – about 60 venues, some like Fabric having multiple units. The rest still rely on analog systems that get it right half the time. In the shadows of the dancefloor, the music plays, but the money doesnt.

These insights come from six months of digging into the performance-rights system, combined with a global survey of 338 stakeholders across 45 countries. For a track to generate the correct payment, it has to survive four checkpoints: coverage and location of the performance, accurate track attribution, creator registration, and licensing/distribution.

Between April and October 2025, Fair Play sent data requests to UK collection societies and MRT providers to verify coverage, attribution rates, and methodologies. Some operational data were off-limits due to confidentiality, so the team also leaned on published tariffs, policy documents, public statements, mathematical assumptions, and the global survey.

The survey revealed serious cracks. Nearly half of electronic music creators (46%) arent even registered with collection societies. More than half of venue operators (58%) admit they barely understand MRT. Meanwhile, most producers (81%) see only a tiny fraction of their annual income coming from performance royalties, and 82% rate their local system as inadequate or worse.

Fair Play points to a few clear fixes. Expanding MRT coverage from 7% to 25% could triple the number of correctly tracked performances. Onboarding more creators would unlock millions in unpaid royalties. And shifting distribution weights to favor the most reliable tracking methods could make the system work properly without inventing any new technology.

Fair Plays findings show that the issues run far deeper than technology: theyre not just about Aslice or any modern redistribution platform. The roots trace back over a century: as early as the 19th century, Marx (yes, that Marx) noted how artistslabor was separated from its value, turning creativity into a resource that enriched others before the creator. History, it seems, has a habit of repeating itself.

Today, electronic music producers face a modern version of the same gap. Their tracks travel the globe, fueling a multi-billion-pound industry of clubs, festivals, and digital content, but their financial return remains minimal. The digital age didnt create this divide; it only made it impossible to ignore.

Within this context, initiatives like Aslice, now expanded and amplified by Fair Play offer a glimpse of a way forward. The industry needs to transform these early experiments into structural change, making fair compensation the standard rather than the exception. For those ready to dig into the numbers, dynamics, and actionable proposals for a fairer electronic music royalty system, the full report is available HERE.

Electronic Music’s Hidden Economy / Who Really Gets Paid?

Credits:

Organization: Fair Play / @fair.playgroup
Words: Gianmaria Garofalo / @gianmaria.garofalo
Editor: Anca Macavei / @ancamacavei

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