Spotify CEO says 30-second trick will not boost royalties
Spotify CEO Daniel Ek has refuted claims that users can manipulate the platform's royalty payment structure by listening to a 30-second track on a loop. This comes amid concerns about criminal gangs using Spotify's royalty system to launder money from drug deals. The platform uses a complex algorithm to determine artist payouts, which has led to calls for a more transparent payment model.
A complex algorithm determines artist payouts
Spotify pays artists monthly, with two tiers of royalties based on factors such as streaming methods and agreements with music labels or distributors. The platform's website clarifies that it does not pay the royalties based on a per-play or stream rate. Instead, a complex algorithm considers factors like the country where the stream originated, the user's subscription type, and the number of streams an artist receives to determine payouts.
JP Morgan says 10% of Spotify streams are fake
JP Morgan executives claimed that up to 10% of all streams on Spotify are fake due to artificial streaming, where the devices continuously play selected tracks in a loop. They also said that subscribers could earn $1,200 (around Rs. 99,600) every month by hearing their song on repeat for 24 hours a day. However, Ek mentioned that this kind of manipulation was not possible.
Deezer, Universal Music Group to offer larger royalties
Deezer and Universal Music Group have revealed plans to launch a music streaming model aimed at generating larger royalties for artists. The model will pay artists based on the number of times their music is streamed, rather than the revenue generated by the platform. This move could force other streaming services, such as Spotify and Apple Music to adjust their royalty payment models, addressing ongoing concerns about fairness in the music industry.
