Spotify has announced a rule change starting in 2024, requiring artists to meet a minimum number of unique listeners to qualify for royalty payments, aiming to curb artificial streaming practices.
The new rule impacts music streaming and related crypto assets, as Spotify's updated listener metrics may influence tokenized royalty platforms and NFT projects incorporating streaming data.
Spotify has announced a change to its monthly listener criteria to address fraudulent streaming and ensure fair artist compensation. These measures follow a series of anti-fraud initiatives led by CEO Daniel Ek.
Daniel Ek, CEO of Spotify, confirmed new rules requiring artists to achieve a minimum of 1,000 streams and unique listeners annually for royalty eligibility. This change is part of efforts to address artificial streaming challenges faced by digital platforms.
Minimum 1,000 Streams Required for Spotify Royalties
The changes could impact artists relying on stream counts for income, as only those meeting the new requirements will earn royalties. This may benefit the broader industry by reducing fraudulent practices impacting true artist earnings.
Financial implications are significant for platforms using Spotify data, such as DeFi or NFT music protocols. These might see shifts in royalty calculations, though no immediate liquidity changes in related crypto assets have been reported.
Anti-Fraud Measures Echo Industry-Wide Efforts
In the past, music streaming platforms required a minimum of 30-second plays. Spotify's updated thresholds echo previous anti-fraud efforts seen across the digital streaming industry, aiming to maintain platform integrity.
Expert insights suggest such changes could bolster authentic artist streaming and positively influence genuine listening patterns. Such precedence supports community trends towards maintaining fair and ethical music consumption.
"From 2024 onwards, artists will also need to hit a minimum number of unique listeners to make their track eligible for royalty payments. This new rule has been introduced to try and prevent bots and other artificial streaming practices from taking place."