Spotify: This is what the adjustments to license fees mean for artists

According to Spotify, the innovations should have a positive effect on the amount of content and the risk of fraud.

Spotify recently announced a minimum number of streams for royalties. Among other things, all songs on the platform must achieve at least 1,000 streams in order to be compensated at all. A lot has also changed in the way we deal with fake songs and white noise tracks.

Many lesser-known artists have already feared that these changes would have a negative impact on them – and in fact there are a few things that musicians on Spotify now have to take into account.

Change in payouts

The problem

Many tracks on Spotify do not generate enough revenue to meet the minimum limits set for label payments. Combining the streams of all songs that do not meet this threshold creates a significant amount of money that could be divided among the artists whose works actually meet the requirements.

Spotify’s solution

From the beginning of 2024, new guidelines will apply at Spotify: A piece must be streamed at least 1,000 times per year to receive compensation. This change allows Spotify to invest more specifically in songs that are more popular with listeners.

What artists need to consider

For lesser-known artists like Tracks, the minimum number of 1,000 streams is a real challenge. In order to have a source of financial income with the help of Spotify, you should increasingly promote your own tracks via social media and various playlists.

Dealing with fakes

The problem

It has often happened that people try to manipulate the Spotify system by fake song playbacks. This is done, among other things, by using automated bots, repeatedly creating playlists and influencing popular playlists – all with the aim of artificially increasing streaming numbers.

Spotify is therefore trying to invest more money in identifying and preventing artificial streaming practices. Fraudulent tactics ultimately result in money being withdrawn from the royalty pool, reducing direct distributions to artists.

Spotify’s solution

To address this issue, Spotify will begin charging companies, including labels and distributors, that are associated with individuals involved in fraudulent activities. The aim of this measure is to encourage companies to take greater responsibility for the content they work with.

What artists need to consider

If you follow the rules here, you don’t have to worry about anything bad. Ultimately, these changes only aim to ensure that those who behave fairly are rewarded for it.

New rules for white noise tracks

The problem

In the past, some noise post creators have used a trick. They layered the same song over and over again, generating many short tracks in a row in a playlist with minimal effort. Here you will find one Example of that.

Spotify’s solution

As of 2024, songs that fall into the “white noise” category must be at least two minutes long. In addition, fewer royalties are paid for such tracks than for other music contributions on the platform.

What artists need to consider

Those who enjoy making these types of soundtracks should consider extending them to comply with the new regulations and maximize earning potential.

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