Spotify Set To Change Royalty Model For 2024
SWEDEN (CelebrityAccess) – MBW is reporting that it has confirmed Spotify is set to make significant changes to its royalty payout model in the first quarter of 2024 with the intention of moving $1B USD in royalty payments over the next five years to legitimate artists and rightsholders.
Spotify has been discussing details of the blueprint for the new model with several music rightsholders such as major record labels, Universal Music Group (UMG), Sony Music Entertainment (SME), Warner Music Group (WMG) as well as indie labels and several distributors.
The changes to the model are below, first reported by MBW and then Billboard.
In short, the three changes are:
Introducing a threshold of minimum annual streams before a track starts generating royalties on Spotify – in a move expected to de-monetize a portion of tracks that previously absorbed 0.5% of the service’s royalty pool.
Financially penalizing distributors of music – labels included – when fraudulent activity is detected on tracks that they’ve uploaded to Spotify.
Introducing a minimum length of play-time that each non-music ‘noise’ track must reach in order to generate royalties.
Spotify’s news comes after UMG announced partnerships with Tidal, Deezer and Soundcloud to explore alternative models .
When reached for comment, a Spotify spokesperson said in a statement, “We’re always evaluating how we can best serve artists, and regularly discuss with partners ways to further platform integrity. We do not have any news to share at this time.”
ncG1vNJzZmiblaGyo77IrbCam5OawLR6wqikaGpgZ4BwfY9oaW5no6W8tbXFsmSsnaRiwbB5wqGYp5%2BVYr%2BwxcClq7JlnaSxpriMn6arZWJlf3V7