Spotify, the world’s leading music streaming platform, is gearing up for a major revamp of its royalty system in an effort to provide a larger share of earnings to “working artists” while curbing fraudulent activities and reducing noise content on its platform.
The first major change in this overhaul is the introduction of a minimum stream threshold. Tracks on Spotify will need to accumulate a minimum of 200 streams per year to generate royalties, ensuring that tracks earning less than 5 cents a month won’t be monetized. While this may affect a small percentage of music on the platform, representing 0.5% of content, the move is set to redirect tens of millions of dollars annually from these underperforming tracks towards more widely streamed artists.
Additionally, Spotify is implementing stringent anti-fraud measures. The platform will employ advanced detection technology to identify and penalize illegal activities, such as the use of artificial intelligence tools to artificially inflate play counts. This step aims to preserve the integrity of streaming data and maintain fair compensation for artists.
A third and rather controversial adjustment targets creators of “non-musical noise content” such as white noise and binaural beats. Currently, Spotify pays royalties for tracks longer than 30 seconds. However, under the new system, these noise tracks will need to meet a different minimum duration requirement before they can earn royalties. Furthermore, Spotify is considering eliminating white noise content altogether and preventing future uploads in this category.
The changes are anticipated to have a significant impact on noise creators, who may see their income reduced or, in some cases, eliminated entirely. Still, Spotify’s move aims to redirect resources to support more artists while maintaining the quality and legitimacy of the content on its platform.
This significant overhaul demonstrates Spotify’s commitment to fairness in the music industry and its continued fight against fraudulent streaming practices. While it may face some backlash from creators of noise content, the platform seeks to strike a balance between supporting independent musicians and preserving the authenticity of its music library.