New Spotify Music Stream Algorithms to Earn Royalties From 2024
Spotify music stream has become one of the ways both dependent and independent artists make real money with their music craft, but some people have been able to figure out some illegal ways of earning streams and cashing out large money from the company, which has become one of the greatest challenges Spotify has been facing.
The recent reveal was about some gangs named “Swedish gang members and an anonymous police officer, ” as revealed by a newspaper in Sweden titled Svenska Dagbladet who alleged that this gang has been using Spotify music stream to launder money.
According to the news source, this Swedish gang members and an anonymous police officer is like a music gang, and what they do is to use crypto currency to purchase fake streams for their Artist and theb cash out big money from the Spotify company with their fake Spotify music stream.
Moreover, at that moment, Spotify didn’t believe that the information could be true after the newspaper got to them, following the fact that they declined an invitation for an interview sent to them by the news company to deliberate in the matter, although one of their spokes men later said it could not be true via his statements.
“We have no evidence that money laundering occurred via Spotify, less than one percent of all streams on Spotify have been determined to be tampered with” the Spotify music stream spokesman said.
But recently, it seem that Spotify is beginning to notice the illegal acts that has been going on via Spotify music stream, and they have figured out what they think that is the best way to tackle the matter, which is by bringing out some new Spotify music stream algorithms that will guild all streaming services and Spotify payments hence forth.
Today, the company has announced some Spotify music stream algorithm that will help them crack down streaming frauds, meanwhile, this also affects the number of Spotify music stream that will make every user earn royalties while using their platform for every music sales.
This new adjustment will really affect many artists, as the company has now become more strict in making sure that people don’t game the system any more, and the first adjustment is that unpopular song won’t be able to start earning some good royalties from the Spotify music stream.
The new Algorithms further states that for a music to start earning royalties from the Spotify company, it must have up to a thousand (1000) streams for the past 12 months, and looking further to the new adjustments, they noted that they will be paying any song that has reached that streaming amount a total of $.03 a month.
Considering the fact that for every song, “both song distributors and Labels require a minimum amount to withdraw” and “banks charge a fee for the transaction.” Many artists might not be able to survive with this new policy, meanwhile in further reveal of the algorithms, they stated that “these small royalty payments add up to about $40 million per year.”
Meanwhile, in a further statement made by the Spotify company, they stated that this new adjustments will help to reduce the rate in which people are actually gaming the system with fake steams to earn money, also, they revealed that “99.5% of all streams are of tracks that have at least 1,000 annual streams, and each of those tracks will earn more under this policy.”
“We also believe the policy will eliminate one strategy used to attempt to game the system or hide artificial streaming, as uploaders will no longer be able to generate pennies from an extremely high volume of tracks.” They stated in a statement made concerning the new Algorithms.
Furthermore, the company added some other new policy relating to those things that were considered irrelevant for earning royalties on Spotify music stream before, one of these things include songs with a very low quality production, especially, noisy tracks, they also stated that any music that is “”whale sounds” or “static” will need to be at least two minutes to be eligible for royalties.”
Also Read: Top Trending Music Videos of 2022
With so many estimations made, this new Algorithms are not going to favour much new Artist, following that fact that they have not really been earning much even when the charges have not been made, but it seems that what the company is after is to make sure they prevent and stop any means by which user game the system and not to help new artists make more money.
But, with the new Algorithms, it’s still going to benefit big artists very much, following the fact that there will be enough money in the pool, but it will strictly move to only some eligible user who are not following any shortcuts to scam the system.
Meanwhile, Spotify has clearly stated that they as the company are not going be earning more money because of the new adjustments they have made, as there will not be any change on the size of the music royalty pool being paid out to rights holders from Spotify.
More over , the new adjustments will be kicking off by next year 2024, and more rule might be included to just released ones, in order to keep the site more sure for good standard earning by eligible users.
And the company have strictly stated that they will be penalising and account or music label that they suspected to be carrying out any kind of illegal moves with the system.