News
Spotify set to revamp royalty model
Two proposed changes are relatively uncontroversial
Spotify plans to fine music distributors for fraud on their tracks and increase the minimum playtime for noise tracks before they earn royalties.
The most contentious change introduces a minimum annual stream threshold before royalties are disbursed. Tracks must generate around 200 streams annually, equivalent to 5 cents per month, to qualify for payment. This may redirect earnings from smaller artists to Spotify’s “streamshare” pool.
This shift in strategy echoes industry-wide efforts to revise royalty models. Spotify’s dominance makes its actions influential in this regard.
Critics argue that this approach disadvantages smaller artists and parallels a “reverse Robin Hood” scenario, benefiting established artists at the expense of indie musicians.
The potential impact on DIY artists and platforms like Tunecore, DistroKid, and CD Baby is a point of concern.
Notably, Spotify has not yet confirmed these changes, and a spokesperson stated, “We do not have any news to share at this time.”
