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Spotify Removes Monetisation For Tracks With Less Than 1,000 Streams


As of April 1, 2024, Spotify has announced that all tracks with less than 1,000 streams will no longer be monetised. This new policy applies to all artists.

Last year, the revised revenue scheme was announced, which states that music will only be considered for royalty pool calculation if it has reached 1,000 plays within the last 12 months. In a blog post, Spotify revealed that 99.5% of streams on their platform are from tracks with over 1,000 plays, and these tracks will now receive higher earnings as a result.

Moreover, to apply royalties, Spotify has implemented a new requirement for a certain minimum of distinct listeners. This measure aims to prevent individuals who utilise automated and fake plays to inflate their stream numbers. Additionally, genres considered "functional", like white noise, are being affected. In the past, these types of recordings could earn revenue with only 30 seconds of play, but now, the minimum required playtime has been extended to two minutes.

The recent alteration has sparked adverse solid reactions from specific music business sectors. In a recent post on X, United Musicians and Allied Workers claimed that the reported numbers may be exaggerated, stating that 86% of Spotify's content will no longer qualify for royalties based on play count.

On April 1, Spotify announced a new policy to demonetise tracks on their platform that receive less than 1000 streams per year. This will affect approximately 86% of the tracks currently on the platform. The group United Musicians and Allied Workers (@UMAW_) expressed concern that this change will significantly impact small artists, who are the very artists that Spotify claims to support. This update was shared on Twitter on April 3, 2024 

The Make Streaming Pay initiative, led by United Musicians and Allied Workers, has called for a more equitable revenue distribution for artists utilising streaming platforms such as Spotify and Apple Music. This advocacy has resulted in the creation of the Living Wage For Musicians Bill, which was presented to the US Congress in March to enable artists and musicians to establish lasting careers in the digital era. For further information, please visit this link:

As political and societal demands for improved royalty payments continue to rise, Spotify seeks to generate more revenue to address its financial shortcomings. Despite its initial public offering in 2018, the company has experienced annual losses. Recent reports reveal that the streaming giant has expressed its intention to revise and raise its pricing, as stated in an article by Bloomberg.

According to Bloomberg, customers in various territories, such as the UK, Australia, and Pakistan, will see an increase of $1 to $2 in their monthly bills. This accounts for the cost of incorporating audiobooks into the platform, which will be added in late 2023. 

Additionally, Spotify recently introduced video learning content to expand its offerings. To cater to those not interested in audiobooks, a new basic tier package and other updated pricing options will be introduced. This news resulted in a 4.6% rise in Spotify's stock value, although the long-term effects are unclear.


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