Spotify is implementing new rules for monetizing music tracks, aimed at fighting rogue artists and more efficiently distributing royalties to artists.
New approach to royalties
Artificially inflated listening
Company introduces fines for labels and distributors found to artificially inflate streaming with the help of technologies for detecting such manipulations. This move should reduce the incentive for artists to download music for "artificial" income.
Minimum Play Threshold
Spotify stops monetizing tracks that have less than 1,000 plays per year . Such music brought only a few cents a month, and due to bank commissions, these sums did not reach the performers. Instead, these minimum funds will be redistributed among artists who have crossed the set threshold of auditions.
Restrictions for functional noises
For tracks with functional noises (rain, wind, sea , ASMR) must be at least two minutes long to generate royalties. This will reduce the opportunity for unscrupulous artists to earn revenue by cutting and re-adding short snippets of such recordings to playlists.
Glossary
- Spotify is the leading streaming platform for listening to music and podcasts.
- Royalties - payments to artists for listening to their music on streaming services.
- ASMR (Autonomous Sensory Meridian Response) is a pleasant tingling sensation that occurs when listening to certain sounds.
Link
- Spotify's Official Royalty Update Blog
- DJ Magazine article on demonetization of tracks with less than 1,000 plays
- Bloomberg article on price changes for Spotify and adding audiobooks
Questions answered
Why Spotify is changing the rules of monetization of musical works?
What measures does Spotify take against artificially inflating listens?
What monetization is provided for unpopular records?
What changes have been made to tracks with functional noises?
What is ASMR and why are there special rules for these recordings?
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Discussion of the topic – Spotify stops monetizing tracks with less than 1,000 streams
Spotify is implementing new rules regarding royalty payments to artists. The company will crack down on unfair audition-rigging practices and better distribute small payments that don't reach artists.
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Oksana
Interestingly, Spotify is trying to streamline payments to artists 💸. While the fines for artificially inflating listens seem harsh, I understand their purpose is to prevent abuse. But does the company risk losing talented beginners with this threshold of 1000 auditions per year?
Hans
In my opinion, such a step is necessary to improve the quality of content 🎶. Artists with few listens are unlikely to have enough of a fan base or popularity to monetize it. Limitation will help to focus on talents that have already earned the recognition of listeners.
Вільгельм
I have heard that platforms like Spotify often complain about the lack of revenue, so it is unlikely that they are willing to pay artists for any content for nominal sums. The new policy aims to streamline monetization and avoid abuses - it makes perfect sense from a business point of view 💼.
Amelie
Interestingly, royalties will be redistributed among popular artists 🌟. I doubt they need additional income, as they already make a lot of money from concerts, merch sales, etc. But young talents will be left without a penny from Spotify - it's unequal conditions 😕.
Pawel
I read one study that said that amateurs can actually abuse the system by uploading artificial noises 🔊 or repeating the same thing many times. So minimum limits seem like a smart solution to get rid of such garbage on the platform.
Артур
But the limit of auditions for functional sounds surprised me 🤔. Will it interfere with various podcasts about nature or relaxing playlists with the sounds of the sea? A strange request for Spotify, because such content is also valuable for many listeners.
Вітольд
Bgrr, these Spotify quirks only increase my dislike for all current trends 😒. Just yesterday you were all happy to use this platform, and now you are fighting because of some new restrictions. Who needs these streaming services anyway when you can just download music and then listen as much as you want? But it's not fashionable, after all... 🙄
Vanessa
Newbies will really struggle with this threshold, but I also see an opportunity here for them 💡. If the performer can get 1000+ listens at the start, this is already a confirmation of his talent and demand. And further, the magic threshold will no longer be a problem if the artist works on his fan base.
Марко
I wonder if Spotify will lose its appeal to artists because of the new rules. After all, they will definitely attract a certain outflow of musicians 🚶♂️. If the service becomes less popular with creators, it may also harm the variety of content for listeners.
Sophie
I was waiting for the release of the new album of my favorite band, and now it turns out that it may not collect the required 1000 listens 😔. But at the same time, I understand that such a policy can force musicians to work more on their popularity, and not count on the monetization of any content.
Джованні
In my opinion, this is a good compromise from Spotify - users will receive quality content, artists will be motivated to work on their popularity, and the service itself will fight against freebies and abuse 💪. Although for novice beginners, the situation becomes more difficult.
Наталія
In general, I believe that such restrictions are not something new 🤷♀️. Similar monetization rules apply to YouTube and other platforms, because they are interested in attractive and high-quality content. So musicians will just have to play by these new rules.
Христина
I wonder what about artists specializing in functional sounds, for example, ASMR content? 🎧 If their tracks don't fall into the appropriate time limit, they won't be able to monetize their content either. Apparently, Spotify did not think about such creators.
Енріке
I'm not even surprised by such changes 😅. Businesses are constantly reforming their rules to maximize profits and optimize operations. I would rather pay attention to how smaller artists adapt to the new requirements and whether they will stay on Spotify at all.