Spotify Shifts Royalty Framework for Q1 2024 to Prevent Fraudulent Streams
The music streaming platform is gearing up to revamp its existing Spotify Royalties Framework according to an opinion piece by Stem president Kristin Graziani. The oped also discussed two new policies that Spotify is expected to roll out in 2024.
The most important of the policies involves the one regarding the Spotify royalties framework, according to which there will now be an annual stream-count threshold that tracks must exceed to generate Spotify royalties.
Graziani specified a figure, setting the requirement at 1,000 plays within the preceding 12 months, for tracks to qualify. According to publicly available data, it thus becomes apparent that around two-thirds of the platform’s tracks are yet to meet this minimum, not just within the current timeframe but in the overall scheme of things.
In 2022, Spotify’s Loud & Clear report stated that 37.51 million tracks had achieved at least 1,000 all-time streams by the end of the year.
However, some reports have cited sources saying that this new payout approach would shift only “about 0.5% of Spotify’s royalty pool to more popular tracks.”
New Spotify Policies To Roll Out in 2024
According to a report, these policies include imposing penalties on labels and distributors for fraudulent streams. The platform also aims to establish an increased minimum playtime requirement before any white noise track or similar uploads can be counted as a stream.
For years, short snippets of white noise of around 30 seconds duration have been accumulating millions of streams and substantial royalty payments. Although the precise duration isn’t specific in the policies yet, the new rules will essentially exclude numerous uploads from the royalty pool.