YouTube and other video websites will be forced to pay more for music under plans to reform European copyright laws.
The European Commission proposals would see artists and record companies get more money from video sites, while platforms like YouTube and Facebook would also be required to use technology that can track copyright violations.
The planned reforms would also oblige publishers and producers to be transparent about profits made from an artists' work.
The draft directive, which includes copyright protections for newspapers, were announced during European Commission President Jean-Claude Juncker's State of the Union speech.
Mr Juncker said: "I want journalists, publishers and authors to be paid fairly for their work, whether it is made in studios or living rooms, whether it is disseminated offline or online, whether it is published via a copying machine or commercially hyperlinked on the web."
Under the EC proposals internet portals like Google and Reddit would be forced to pay newspaper publishers a licence fee when using small extracts of news stories.
Carlo Perrone, head of the European Newspaper Publishers' Association, welcomed the move as a "significant and historic step".
However Conservative MEP Daniel Hannan claimed the plan "won't lead to more income for news sites, let alone journalists".
The planned restrictions on video websites come after a report from campaign group UK Music, which said that revenues from ad-funded digital services "effectively devalue our music behind protectionist and outdated legislation".
In June, Coldplay, ABBA and Paul Weller were among more than 1,000 artists who signed a letter calling for European leaders to crack down on websites "that are unfairly siphoning value away from the music community."
The letter added: "This situation is not just harming today's recording artists and songwriters.
"It threatens the survival of the next generation of creators too, and the viability and the diversity of their work."
The planned reforms will go to the European Parliament and EU member states for approval.
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