With the advent of new rules in place, music industry executives say the music business is facing its most challenging time in its history.
The new rules say artists must be compensated for their music on an hourly basis.
Artists are also required to give credit to their labels on any new releases, but that isn’t enough to cover all the costs of licensing and distributing their music.
The rules also say that artists and labels have to put money toward paying royalties, which can be anywhere from 10 to 50 percent of the gross revenue of a new album, according to a CBS News analysis.
This isn’t the first time that major labels and artists have clashed over the issue.
In 2010, the Recording Industry Association of America (RIAA) filed suit against the Recording Academy of America for its policies, including requiring labels to put down as much money as possible into the artists’ pockets.
In addition to the RIAA, major labels like Sony, Warner, Universal and Universal Music Group are suing to block the new licensing regulations, claiming that the rules are unfair to artists.