Indie artists will have to hit a minimum number of streams before they get paid anything from Spotify. The money made from those tracks will be directed to bigger artists.
Big changes are coming to Spotify’s royalty model, according to Music Business Worldwide . If and when they are implemented in early 2024, it will raise the bar for who gets paid from music streaming on the platform — and direct more money to major labels and artists. Two of the three proposed changes should be relatively uncontroversial. According to the report, Spotify will fine music distributors for fraudulent activity detected on their tracks.
SoundCloud, which is geared specifically toward indie artists, introduced a user-centric model, which distributes payments based on the number of streams, rather than an artist’s share of overall listening. Deezer made waves last month when it made a deal with Universal Music Group to pay out more to popular artists than independent creators in a way that is even more overt than what Spotify is trying to do.
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