Spotify Changes How They Pay Royalties To Artists Starting 2024

[RAMROD 109,978]

 

The company is planning changes to its royalty model for 2024 that will disqualify some tracks from payments and increase penalties for fraud.

Spotify is planning to implement changes to its streaming royalty model in early 2024 that would affect the lowest-streaming acts, non-music noise tracks and distributors and labels committing fraud, sources tell Billboard.

Conversations have been going on for weeks with the major record labels, Universal Music Group, Sony Music Entertainment and Warner Music Group, as well as independent labels and distributors, sources say. While the new royalty system will keep its existing pro-rata model, it introduces new floors that will grow the pool for more established artists and rights holders.

The changes to Spotify’s royalty model, which were first reported by Music Business Worldwide, include:

A new threshold of minimum annual streams that a track must meet before it starts to generate royalties. The threshold, according to MBW, will de-monetize tracks that had previously received 0.5% of Spotify’s royalty pool.

Financial penalties for music distributors and labels when fraudulent activity on tracks they have uploaded to Spotify has been detected.

A minimum play-time length that non-music noise tracks, such as bird sounds or white noise, must reach to generate royalties.

The specific benchmarks of these changes and how financial penalties will be calculated or implemented are currently unclear.

Spotify will need new agreements to the royalty structure changes with most record labels and distributors to implement the plan, but that doesn’t mean entirely new licensing renewals. Changes can be made specifically for these elements, sources say. And since the major labels — which all negotiate their deal renewals with Spotify on different timelines — are likely to benefit from the new terms, they are all likely to sign onto them.

When reached for comment, a Spotify spokesperson said in a statement, “We’re always evaluating how we can best serve artists, and regularly discuss with partners ways to further platform integrity. We do not have any news to share at this time.”

 

https://www.billboard.com/pro/spotify-changing-how-pays-artists-stream-thresholds/

[littlepotter 75,147]

27 minutes ago, RAMROD said:

We’re always evaluating how we can best serve artists

So they decide to demonetize small artists to give more to big artists. I hate capitalism

[Not The Real Gaga 7,545]

17 minutes ago, littlepotter said:

So they decide to demonetize small artists to give more to big artists. I hate capitalism

But small artists don't make a lot of money on those platforms anyway.

[littlepotter 75,147]

2 minutes ago, Not The Real Gaga said:

But small artists don't make a lot of money on those platforms anyway.

And now they'll make nothing. The difference between 0 and a few $ can mean life or death for some

[Nemo 4,299]

It wasn't easy to figure out a way to pay people even less, but they were up to the challenge.

[TheFame Monster 8,949]

24 minutes ago, Nemo said:

It wasn't easy to figure out a way to pay people even less, but they were up to the challenge.

and they’ll probably up the subscription cost too 

Smaller artists will probably start earning more from short clips with their music on TikTok

[Magic Mike 2,748]

Besides paying less to artists than any other platform, Spotify sells data it collects, even from their subscribers, to third parties; they're greedy like no other 

[monketsharona 83,994]

How to silent some very talented small artist and giving voice to some big mainstream artists with no real talent. Urgh 

[Red 98,213]

*Taylor Swift has entered the chat*

*Taylor Swift is typing*

[Zombiecat 16,945]

wtf

[nATAH 50,331]

this is just sad

[alsemanche 93,960]

Thats fucked up

[Teletubby 150,755]

2 hours ago, littlepotter said:

And now they'll make nothing. The difference between 0 and a few $ can mean life or death for some

they will demonetize tracks that earn less than five cents per month (17 plays a month/200 plays a year)
https://www.musicbusinessworldwide.com/spotify-is-changing-its-royalty-model-to-crush-streaming-fraud/

[littlepotter 75,147]

11 minutes ago, Teletubby said:

they will demonetize tracks that earn less than five cents per month (17 plays a month/200 plays a year)

Oh

[4th Time Around 4,525]

All this is going to do is ensure that talented smaller artists don't even get paid the dirt they were making previously. A bad omen for talent being recognized in the future. I hate unrestrained capitalism.