I=4
According to Music Business Worlwide (MBW), Spotify plans to come up with a new royalty payment model in Q1 2024 that would see migration of USD $1 billion to ‘legitimate’ artists and rightsholders in the next 5 years through the following ways;
-
Introducing a minimum number of streams per year that must be reached by an artist before starting to earn royalties, a move that will demonetize 0.5% of Spotify’s royalty pool, resulting to diversion of tens of millions of dollars to more popular artists.
“ In aggregate, these tracks generate royalties that add up to tens of millions of dollars a year, and that number is only growing," a source told MBW. “Next year, without taking this action, Spotify thinks they would have generated around $40 million.”
-
Spotify will fine music distributors for fraudulent activity detected in their tracks.
-
Introducing a minimum length of play time for non-music content that must be reached in order to earn royalties. Currently non-music content earns royalty in every 31 second interval.
“We’re always evaluating how we can best serve artists, and regularly discuss with partners ways to further platform integrity," Spotify spokesperson said when contacted for a response. “We do not have any news to share at this time.”