Sunday, 14 April 2024

Business News

Changes to Spotify’s royalty model, including the 1,000 annual streams royalty policy, are officially live as of April 1

Spotify buys popular music trivia game Heardle

In October, MBW broke the news that major changes were coming to the way Spotify calculates recorded royalties in early 2024.

In November, the music streaming giant confirmed exactly what those changes were and claimed that, via its new policies, it will be able to drive “an additional $1 billion in revenue toward emerging and professional artists over the next five years”.

According to Spotify, as of this Monday (April 1, 2024), all of these policies are now officially live on the platform.

Spotify’s new policies aim to tackle three core issues:

(1) To “further deter artificial streaming

(2) To “better distribute small payments that aren’t reaching artists,” and

(3) “Rein in those attempting to game the system with noise”.

Spotify’s policy to “better distribute small payments that aren’t reaching artists,” sees the introduction of a minimum threshold for streams before any track starts generating royalties on the service.

What the means in practice is that tracks must have reached a threshold of at least 1,000 streams in the previous 12 months to be included in the recorded music royalty pool calculation.

As MBW reported in December, there’s also a minimum number of unique listeners required for a track to become eligible for royalties. According to Spotify, this policy will ensure that users “can’t game the system by streaming the track hundreds of times in order to qualify”.

Spotify says it won’t share the number of unique listeners required to become eligible for royalties “to prevent further manipulation by bad actors”.

Spotify said in a blog post that “99.5% of all streams” on its platform “are of tracks that have at least 1,000 annual streams”, and that “each of those tracks will earn more under this policy”.


Also now in effect on the platform, in an attempt to “deter” artificial streaming, Spotify will charge labels and distributors per track when “flagrant artificial streaming” is detected on their content.

Spotify explained in a blog post that it “is able to fight artificial streaming once it occurs on our platform, but the industry would be better off if bad actors were disincentivized from uploading to Spotify and other streaming services in the first place”.

The blog post added: “We believe this will meaningfully deter labels and distributors from continuing to distribute the music of known bad actors that attempt to divert money from…

Click Here to Read the Full Original Article at Music Business Worldwide…