Spotifyhas just announced a change in its artist remuneration policy. She wants to modernize it in order to combat money loss and maximize their profits. This is what the platform communicated in a blog post published on November 21, 2023.
A few years ago we mentioned a study which revealed an estimate of theamount received by the artists for each listendepending on the platform. She revealed thatSpotifyis not the best paying, with only $0.0038 per reading. For comparison, Apple Music does better and rewards artists $0.0064 per play.
Spotifyindicates that it wants to focus the modernization of its remuneration system on three main areas which are:
- Fight againstfalse eavesdropping.
- Avoidlost payments.
- No longer paycertain publishers of “noises»(sounds of nature, whale, or city, etc.).
When publishing noise becomes a source of income
Some people who are not artists take advantage of the remuneration system ofSpotifyin their own way. To do this, they can, for example, publish a noise lasting a few seconds that they will duplicate hundreds of times,without any artistic effort.Spotifyannounces that from next year, certain criteria will come into place to guarantee remuneration only to those who deserve it. This does not apply to relaxation or productivity noise serviceslike Endel, who carry out real scientific work behind.
40 million per year in the wind
Spotify tells us that it also intends to solve a major problem. The latter concerns lost payments that never reach the recipients. This is due to the fact that the amounts are sometimes derisory and do not even cover the price of the transfer and then end up lost. The phenomenon generatesmore than $40 million in losses each year. In order to overcome this problem, a minimum amount will be necessary in order to receive your remuneration.
1 billion potential gain
By focusing on improving the points stated above, the music streaming application plans to generate an additional billion dollars for its artists. The figure may seem enormous, but the firm indicates that the points mentioned generate enormous losses.
