Spotify may change the way it pays artists from 2024 onwards. It appears that the company plans to change its royalty model for next year, disqualifying certain audio tracks — such as low-range streaming and non-musical noise — and increasing penalties against studios that commit fraud.
The platform did not confirm these possible changes, but sources consulted by Billboard point to imminent changes in the remuneration of singers and other accounts. Spotify may discuss this idea with major US record labels, including Universal Music Group, Sony Music Entertainment, and Warner Music Group.
For 2024, three significant changes are expected in the way creators are paid:
- Limit of minimum annual flows that a track must meet before starting to generate royalties.
- Fines for distributors and record labels when fraudulent activities are identified.
- Minimum playback time for white noise tracks, sounds of rain, birds, and other similar audio to start earning royalties.
To achieve these objectives, Spotify must sign new agreements with record labels and distributors so that the change in the way music royalties are paid is approved by everyone. In response to Billboard, a company spokesperson commented on these speculations, noting that:
“We are always evaluating how we can better serve artists and regularly discuss ways to promote the integrity of the platform with partners. We have no news to share at this time.” The statement does not provide details about the company’s plans but points to an open discussion with affiliates.