Music artists will have to wait even longer before they can start earning through Spotify now thanks to new changes. From 2024, they’ll need 1,000 plays minimum before their track can earn money.
Spotify have confirmed that music artists will need a minimum of 1,000 plays on their music before that track will start earning. This is huge news for smaller independent artists. Conversations between Spotify and music rightsholders have resulted in this decision.
Not only will the track have to reach 1,000 to start earning, but it will need to reach this number each year minimum. If a song doesn’t reach the minimum number of streams per year then it won’t bring in any funds for the artist.
This rule will come into place in 2024. Currently, a track receiving around 200 plays will earn about 5 cents per month. The new idea would mean these tracks no longer earn any money even though they are being streamed multiple times.
It could see smaller artist trying even harder to get away with fraud streaming. After all, to earn nothing from your music being played does seem a little unfair. Those in the very early stages of their career may not have a huge amount of listeners.
Releasing Streamshares royalty pool
However, this doesn’t mean their music should be heard for free. Spotify have said this new move will demonetise a selection of tracks. These tracks currently take up 0.5% of Spotify’s Streamshare royalty pool. The pool which is pro-rata based.
By making this change, Spotify believe tens of millions of dollars will be spared each year. This money will then be spread across all other music artists who will see a higher payout because of these changes. The 0.5% will be added to the remaining royalty pool.
It’s been said that this will give $40 million more to those artists whose tracks gain over 1,000 streams. A spokesperson has said “This targets those royalty payouts whose value is being destroyed by being turned into fractional payments – pennies or nickels.”
It could be argued, the few pennies that were being earned by less streams weren’t even reaching the music artists. Once distribution companies and any third parties take their cut, the music artists won’t be seeing any money for less than 1,000 streams.
