Spotify Pulls the Plug on Monetisation for Tracks Under 1,000 Streams
Spotify’s making waves in the music streaming world with a game-changing move: as of April 1st, tracks with under 1,000 streams won’t be getting any love in the monetisation department. It’s a bold step, but Spotify’s got the numbers to back it up. According to their report “Modernising our royalty system,” a staggering 99.5% of streams come from tracks with over 1,000 plays.
But don’t worry, this isn’t just about cutting off the little guys. Spotify’s got a plan to redistribute the wealth. Instead of scattering pennies to the wind, they’re going to pool those millions of dollars they’d usually dish out to underperforming tracks and beef up payments for all the eligible ones.
But here’s the kicker: there’s a catch to all this. Ever heard of a minimum withdrawal threshold? Yeah, Spotify’s throwing that into the mix. Labels now have to meet a certain quota of royalties with each withdrawal, and let’s just say, it’s not always smooth sailing thanks to those pesky banking fees.
And as if that wasn’t enough, Spotify’s cracking down on fake streams, too. They’re setting a minimum listener requirement to qualify for royalties, all in an effort to level the playing field.
Oh, and remember those ambient sounds and white noise tracks? They used to be cash cows with just a snippet of playtime. Not anymore! Now, you’ve got to listen for a solid two minutes before the cash starts rolling in.
And last but not least, brace yourselves for a price hike. Spotify’s raising the stakes with a subscription price increase in select regions. Individual plans are going up by a buck a month, while Duo and Family plans are facing an extra two bucks.
So there you have it! Spotify’s shaking things up, playing by a whole new set of rules, and it’s got everyone talking. Dive into the full scoop with their detailed report if you want to get into the nitty-gritty.