Spotify’s current royalty model is about to change, with significant changes for some rights holders of music hosted on the platform. According to Music Business Worldwide, the streamer is planning a payment overhaul that will give working artists a bigger share of the company’s revenue, but there is controversy.
As for the first change, according to the report, although these songs represent a small percentage of the music on the platform (99.5% of all monetized content will continue to generate money after this change), their royalties cost Spotify dozens of million dollars a year.
The company is already receiving criticism for this specific change, because there are many indie songs from smaller artists that don’t reach the required threshold: they could see their already meager income decrease, so famous artists can earn more.
The same goes for noise producers, who can see their earnings reduce significantly with the need for longer playback times.
Initially, Spotify’s measures would have been even more drastic, as revealed by Bloomberg: the company had considered completely removing white noise content from its platform and banning future uploads in the category, because doing so would increase its annual gross profit by at 38 million dollars.
It’s worth noting that Spotify has not yet confirmed (or denied) the information. At Music Business Worldwide, a spokesperson simply said that he had not “no news to share at the moment”.
The post Spotify will make controversial changes to its royalty model, site says appeared first on Olhar Digital.
Source: Olhar Digital
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
