Streaming service Spotify is reportedly looking to make some changes to its royalty structure in early 2024. In addition to musicians with low streaming numbers, those who attract attention through fraudulent activities or upload “white noise” and natural sounds to the platform will also be affected.
The first change to the compensation system planned so far is intended to mean that a song must achieve a minimum number of streams before it is compensated. This threshold, which has not yet been made clear, will reportedly demonetize songs that have received 0.5% of the streamer’s total royalty pool. Loud Music Business Worldwide (MBW) This money will be redistributed via Spotify’s Streamshare license pot and paid out to more popular songs.
Furthermore, music distributors whose uploads to the platform are classified as fraudulent will receive fines. Likewise, “White Noise” titles that fall into the noise and nature sounds category will require longer playtimes to generate royalties. The exact length has not yet been made clear, nor is it certain how it is determined whether a title falls into this category.
“Spotify is moving away from its previous promise”
Commenting on the changes, a Spotify spokesperson said: “We are continually evaluating how we can best serve artists and regularly discuss with partners ways to improve platform integrity. We have no news to announce at this time.”
The United Musicians and Allied Workers (UMAW) union immediately commented on the planned changes and criticized the planned measures: “Musicians have solutions to fix streaming, but Spotify isn’t listening. Instead, they are proposing changes that will further enrich the top of the pyramid and make it even harder for working musicians to benefit from streaming.”
The “Future of Music Coalition” supported their criticism, adding: “This is a serious departure from the way the service was presented to the music community at launch, namely as a level playing field that treats all tracks equally. “Over time, Spotify has moved further and further away from this promise.”