Universal Music Group and Deezer have set Q4 as the launch date for a new, artist-centric streaming royalty model the companies jointly developed. Indie streaming platform Deezer will launch the concept model in its native France in Q4 2023. The companies conceived the new compensation methodology as part of a previously announced collaboration, using “deep data analysis” for an outcome they say “better reflects the true value of artist-fan relationships.” Calling streaming “the most significant technology advancement in music in many years,” the partners conclude “a flood of uploads with no meaningful engagement” has necessitated reassessment.

The result: “More listener payouts toward professional artists” writes The Verge, noting “the changes will essentially count a single listen as two listens on popular tracks, giving them more revenue than smaller ones.” At present, platforms including Apple Music, Spotify and (until now) Deezer apportion payments based on total listens, regardless of artist or title.

“In the new deal, ‘professional artists,’ from big stars like BTS and Billie Eilish to up-and-coming bands, will effectively see payout increases of 10 percent,” The Verge says, explaining that “to qualify for the increased payouts, artists need a minimum of 1,000 streams per month by at least 500 separate users.” That parameter can double to what equates to four streams when users “actively search” for individual artists or songs.

“This is a massive change in the way the music industry will work,” Deezer CEO Jeronimo Folgueira said in a joint announcement with UMG. “We have 90 million tracks and many of them are just noise, like literally noise, the sound of a washing machine and rain. It is fundamentally wrong that 30 seconds of the recording of a washing machine gets paid the same as the latest single by Harry Styles.”

Financial Times reports that audio generated by “amateurs, bots and white noise soundtracks” last year earned $900 million in “long tail” royalty revenue from music streaming platforms, according to a Goldman Sachs estimate. UMG Chief Digital Officer Michael Nash told Financial Times the changes will be “revenue positive” for his company, which includes stars such as Taylor Swift, Elton John and Drake on its roster.

“The changes, if replicated more widely across other streaming services, would have significant implications for the music business,” suggests Financial Times, which notes that “services such as Spotify, Apple Music and Deezer have revived the industry, growing sales for nearly a decade” without changes to the royalty formula, “a source of frustration among music companies and musicians that feel short-changed.”