22/11/2023
💸 Spotify Announces Significant Changes in Royalty Payment Policies
Spotify has confirmed it will cease payments for songs with fewer than 1,000 annual streams starting in 2024. Additionally, the platform aims to tackle fraudulent streams and reduce payments for content considered "functional noise."
Spotify has identified that approximately 0.5% of tracks in its library, representing "tens of millions," have fewer than 1,000 annual streams. This generates around $3, below the minimum required by many distributors. The new policy will withhold these royalties until songs surpass 1,000 streams.
The company aims to penalise labels and distributors for artificial streams and short-form "functional noise" content. This includes publishing noise tracks like whale sounds with the intention of securing disproportionate payments. Spotify plans to increase the minimum length for generating royalties from 30 seconds to two minutes and devalue noise streams in collaboration with licensors. Specific details on penalties and criteria have not yet been disclosed by Spotify.