Spotify announced changes to its artist payment system, introducing a minimum streaming requirement for royalties starting in 2024. The platform estimates this will generate an additional billion dollars in revenue for artists over the next five years. This move aims to deter artificial streaming and allocate small payments more equitably. Additionally, Spotify plans to tighten conditions for the payment of royalties for non-musical “noises” like animal or nature sounds, requiring them to be at least two minutes long and discussing with rights owners how to value them at a fraction of music streams. These adjustments come in response to concerns about fake listening and inequitable payments in the industry.

Billion dollar windfall? Spotify to update how it pays rights holders – Detail Points

– Spotify will modify how it pays artists in 2024
– Introducing a minimum number of times a piece must be streamed before qualifying for royalties
– Estimates it can generate around a billion dollars in additional revenue for artists over the next five years
– Will require a minimum of 1,000 streams over 12 months before paying out royalties
– Songs below this threshold generate on average three cents per month and do not reach rights holders
– A global study at the start of 2023 estimated that between 1 and 3 percent of online listening was fake
– Spotify will tighten conditions for the payment of royalties for non-musical “noises” such as sounds of animals or nature
– These tracks will have to be at least two minutes long
– Spotify will discuss with the rights owners how to value noise streams at a fraction of the value of music streams.

What modifications is Spotify making to how it pays artists?

Spotify is introducing a minimum number of times a piece must be streamed before qualifying for royalties. From early 2024, Spotify will require a minimum of 1,000 streams over 12 months before paying out royalties.

How much additional revenue does Spotify estimate it can generate for artists over the next five years with the announced changes?

Spotify estimates it can generate around a billion dollars in additional revenue for artists over the next five years with the announced changes in how it pays artists.

What is the purpose of Spotify’s modifications to its payment system for artists?

Spotify plans “to further deter artificial streaming, better distribute small payments that aren’t reaching artists, and rein in those attempting to game the system with noise.”

What is Spotify’s plan for non-musical “noises” on its platform?

Spotify will tighten conditions for the payment of royalties for non-musical “noises,” such as sounds of animals or nature. These tracks will have to be at least two minutes long, and Spotify will discuss with the rights owners how “to value noise streams at a fraction of the value of music streams.”

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