Spotify is preparing to implement a new royalty system in 2024. This comprehensive overhaul aims to empower lesser-known artists by introducing a lower threshold for monetization, clamping down on fraudulent practices, and eliminating a peculiar source of income – “non-musical noise content.”
Minimum Stream Requirement
One of the central changes in Spotify’s new royalty model is the introduction of a minimum stream requirement. Tracks will need a minimum of 200 plays per year before they can start generating royalties. This move seeks to halt the monetization of tracks that earn less than 5 cents a month, a segment comprising a minuscule 0.5% of the music on the platform. By redirecting these funds, Spotify intends to provide more substantial support to emerging artists rather than subsidizing obscure indie tracks.
To maintain the integrity of its platform, Spotify is introducing stringent anti-fraud measures. The company is implementing cutting-edge detection technology to identify and penalize illegal activities, such as the artificial inflation of play counts through the use of AI tools. This proactive stance against cheating ensures that legitimate artists receive their rightful compensation while safeguarding the listener experience.
Crackdown on Noise Content
One of the most controversial changes is Spotify’s decision to crackdown on “non-musical noise content.” This category includes tracks like white noise and binaural beats, often used for relaxation, meditation, or sleep. Currently, Spotify pays royalties for tracks lasting longer than half a minute, regardless of their musical nature. With the new system, these noise tracks will need to meet a different minimum duration before becoming eligible for royalties.
In an even more drastic move, Spotify is considering the complete removal of white noise content and the prohibition of future uploads in this category. While this decision may negatively impact noise creators, it aligns with Spotify’s vision to streamline its platform towards genuine music content.
These radical changes are set to roll out in the first quarter of 2024, positioning Spotify as a leader in artist empowerment, anti-fraud efforts, and the purification of its content library. The innovative royalty model marks a pivotal moment in the music streaming industry, signaling Spotify’s commitment to fostering a more equitable and authentic musical ecosystem.