New policies for paying royalties on Spotify

Music news

Withholding in the payment of royalties and penalties are some of the changes for 2024.

Spotify has positioned itself as one of the most important platforms in the music industry, allowing closeness and connection between different artists and their listeners, however, as in everything, the operation must be regulated so that it does not get out of control and thus everyone We can continue enjoying good music.

This is why it has officially announced its new policy on royalty payments, starting in early 2024, it will withhold royalties from songs that have less than 1,000 views per year, with the intention of stopping fraudulent streams and reducing payments for “functional noise” content.

It mentions that tens of millions of the 100 million tracks in its library have been streamed at least once, but less than 1,000 times a year, representing 0.5% of the streamer’s royalties. According to the current rate for transmission of Spotify, 1,000 annual streams generate about $3, well below the minimum that many distributors require before making payments to artists. According to the status quo, the money Spotify Payment for those songs remains in the hands of the distributor until the artist payment threshold is reached. According to the new policy, Spotify will retain those royalties and transfer them to the shared streaming pool, now limited to songs with more than 1,000 streams.

Another of the changes they announced is aimed at transmission robots and short “functional noise” content, which for the company is considered a fraudulent practice; currently remove songs from your library when it detects artificial streams generated by bots or scripts; This is why it plans to penalize labels and distributors with per-track sanctions when a “flagrant” artificial transmission is detected, but it did not specify what those sanctions would be or how its tools detect such activity.

Spotify did not specify what fraction of the current rate it seeks, what criteria it will use to determine which tracks are functional noise, or by what means it will determine which tracks meet those criteria.

What do you think of this new policy?


Written by

Christopher Johnson

Christopher Johnson is a dedicated writer and key contributor to the WECB website, Emerson College's student-run radio station. Passionate about music, radio communication, and journalism, Christopher pursues his craft with a blend of meticulous research and creative flair. His writings on the site cover an array of subjects, from music reviews and artist interviews to event updates and industry news. As an active member of the Emerson College community, Christopher is not only a writer but also an advocate for student involvement, using his work to foster increased engagement and enthusiasm within the school's radio and broadcasting culture. Through his consistent and high-quality outputs, Christopher Johnson helps shape the voice and identity of WECB, truly embodying its motto of being an inclusive, diverse, and enthusiastic music community.