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HomeBusinessSpotify Makes Royalty Changes for to Drive $1 Billion Drive for Artists...

Spotify Makes Royalty Changes for to Drive $1 Billion Drive for Artists Keeping Fraudsters at Bay

Image by Photo Mix from Pixabay

Spotify (SPOT) has announced that certain types of “noise” music, like white noise and sleep sounds, must now be two minutes or longer. Additionally, labels and distributors who they believe are creating fake streams—a.k.a., using click-farms or bots to artificially inflate an artist’s streaming figures and divert Spotify royalties—will be charged an additional fee by Spotify.

By rerouting money that would have otherwise gone to these rights holders or distributors who do not remit royalties below a certain threshold, Spotify argues the changes will increase revenue to artists.

Spotify makes significant investments to identify, stop, and mitigate the impact of artificial streaming on royalties. Nevertheless, dishonest performers persist in their attempts to embezzle funds from the royalties that are supposed to go to sincere, diligent artists.

Spotify will start penalizing labels and distributors per track as a new disincentive when we find rampant artificial streaming on their content, starting early in the following year. Spotify will be raising the minimum track length requirement for functional noise recordings to two minutes starting next year in order to qualify for royalties. White noise, machine noises, natural sounds, sound effects, silent recordings, non-spoken ASMR, and sound effects are examples of functional genres.

A minimum track length will only earn these tracks a small portion of what they were previously making (two minutes of noise recordings would only produce one royalty-bearing stream, not four), freeing up additional funds to support the efforts of sincere, hardworking artists.

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