Spotify will reportedly change its royalty payout formula beginning next year in an effort to cut out scammers and more equitably distribute funds among “legitimate artists” and rightsholders. As a result, it is estimated that about $1 billion in royalty payments will be redistributed over the next five years. The streamer is considering setting a minimum number of annual streams to qualify for royalty payments — which is generating controversy — as well as sanctions on distributors and labels determined to be fraudulently manipulating streams, and adding a playtime threshold that targets so called “noise tracks” designed to emulate music. Continue reading Spotify to Introduce New Version of Its Royalty Payout Model

TikTok has launched a distribution platform for music creators, SoundOn. The all-in-one platform, which also offers marketing assistance, is designed to help artists develop and launch their careers. Released in beta last year, SoundOn has already gone live in the U.S., UK, Brazil and Indonesia, enabling music to be directly uploaded to TikTok and Resso, a music streaming platform ByteDance launched in 2020. SoundOn enables “artists to grow their fanbases, harness their creative voice and get their music heard worldwide,” TikTok says. Creators keep 100 percent of their streaming royalties in year one and 90 percent thereafter. Continue reading TikTok Launches SoundOn to Help Music Creators Monetize

Apple Music informed musicians that it pays one penny per stream, which is roughly double the rate paid by Spotify, the world’s largest music streaming service. Spotify pays about one-third to one-half penny per stream, which is potentially offset by its 155 million subscribers (out of 345 total active users) versus Apple Music’s 60+ million. The Union of Musicians and Allied Workers (UMAW) responded to Apple’s announcement by saying that all music streamers should pay one penny per stream “at a minimum.” Continue reading Apple Music Pays 1 Cent per Stream but Metric Is Misleading

“Stranger Things,” “Breaking Bad” and “Transparent” are just a few examples of popular television shows that have been a boon to the music industry in recent years. During an era when physical music sales are at a low, artists and labels are eager to license their music to play during TV episodes for royalties and publicity. According to numbers provided by UK music collecting society PRS for Music — home of the Performing Right Society (PRS) and the Mechanical-Copyright Protection Society (MCPS), the use of music across on-demand platforms has increased 238 percent over the past five years.

Continue reading On-Demand Television Is Giving the Music Industry a Boost

Apple reportedly wants to bundle Apple Music and Apple TV+ for one flat fee, and is in early discussions with record labels to do so. Some labels are “open to the idea,” but others are leery it will lead to loss of revenue. According to sources, Apple hasn’t yet worked out a price formula. Currently, Apple Music costs $9.99 per month for those in the U.S., with a $4.99 level for students. Apple TV+ will cost $4.99 per month, and is free for a year to anyone who buys an iPhone, iPad, Apple TV, iPod touch or Mac. Continue reading Apple in Talks with Record Labels on Bundling Music, Video

Top streaming music service Spotify announced that it added 8 million subscribers during the most recent quarter ending in June, bringing its total to 108 million paying subscribers and 232 million monthly active users (paying and non-paying). The subscriber tally includes those who signed up for Spotify’s 30-day free trial. The company also recently launched its biannual campaign that offers the premium service for only $1. As a result, its average revenue per user dropped to $5.42, which is a 1 percent reduction compared to the previous quarter. Continue reading Spotify Reaches 108M Subs, But Revenue Per User Drops

Music streaming service Spotify allows users to “pre-save” an upcoming release to their accounts. But users don’t realize that, by doing so, they are also agreeing to let Spotify release more personal data than is typical to the upcoming release’s label. Those labels can access information to track a user’s listening behavior, change the musicians they follow and possibly even control their music streaming remotely. In an era in which data privacy is receiving more consumer attention, Spotify’s practice is likely to become an issue. Continue reading Spotify Allows Music Labels to Access Data About its Users

Stockholm-based Spotify is making a move that could challenge traditional royalty models and the major record labels that have long led the music industry. Spotify has struck licensing deals directly with a handful of independent artists over the last year, giving the artists a larger monetary cut and ownership of their recordings. The financial details include advance payments of tens or hundreds of thousands of dollars, according to sources, considered “modest” in the music industry. Spotify has released few details about the deals. Continue reading Spotify Licensing Deals Could Have Impact on Music Industry

Instagram Stories, which currently touts 400 million daily users, now offers a new feature that enables users to add clips of popular songs to their photos and videos. The feature is initially available to Android and iOS users in six countries (including the U.S.), with plans to roll out to additional regions soon. Facebook’s recent deals with major and indie music labels will enable Instagram users to select up to 15 seconds of music from the likes of Bruno Mars, Cardi B, Demi Lovato and Maroon 5 to create soundtracks for each post. Continue reading Instagram Users Can Feature Popular Music in Their Stories

Spotify is offering some managers and indie music acts a new arrangement: Management firms can receive “several hundred thousand dollars” as an advance fee for licensing “a certain number of tracks” of their indie artists directly to Spotify. In addition, in some cases, the managers and acts will earn 50 percent of the revenue of those songs per stream. In comparison, major-label artists and their management teams usually get 20 percent to 50 percent of the label’s share and don’t own their master recordings. Continue reading Spotify Offers Direct Licensing Deals to Managers, Indie Acts

Facebook has struck deals with the major record labels and numerous indies so that users can upload videos featuring copyrighted background music without the fear of that content being taken down. Facebook plans to pay artists and labels when tracks are used, although rates have yet to be disclosed and it is unclear whether compensation would be based on video uploads or views. The social platform is not yet introducing a tool for adding a copyrighted song to a video, but Facebook-owned Instagram recently prototyped such a feature (Instagram is also prepping a feature that would allow for long-form video). Continue reading Facebook to Help Users Feature Copyrighted Music in Videos

Spotify introduced a “Hate Content & Hateful Conduct” policy in May and, due to the dismay and confusion it sparked, the company is changing its policy, specifically canceling the portion related to the decision to remove artists from playlists if they were involved in “controversies.” Kendrick Lamar’s record label felt so strongly about the policy that it threatened to remove his music from Spotify, and company chief executive Daniel Ek was forced to admit the company could have done a better job in explaining the policy. Continue reading Spotify Tweaks Contentious Policy on Hate Content, Conduct

Changes are afoot at YouTube. The company plans to debut a new version of its music service and charge more to view original shows. YouTube Red, an on-demand subscription service that offered music and original programming without ads debuted two years ago for $10 per month. Next week, the company will launch YouTube Music, which adds personalized playlists based on YouTube history and will eventually replace Google Play Music. YouTube Music will cost $10 per month after a trial period. Continue reading YouTube Splits Red into YouTube Music and YouTube Premium

Google’s YouTube will now sell Vevo’s music video clips directly to advertisers, as part of a deal struck late last year but just made public. Up until now, Vevo had the first pass at selling its own videos, leaving automated, remnant ad sales to Google. At YouTube’s “Brandcast” pitch event to advertisers, the company did not so much announce the terms of the deal, but let it slip that it was selling Vevo clips in its “Google Preferred” tier, which is a collection of its most valuable and most “brand-safe” content. Continue reading YouTube to Sell Vevo Music Video Clips Direct to Advertisers

Apple, Pandora and Amazon are among those ramping up efforts to differentiate their music services in order to win over subscribers and artists. Second to Spotify’s dominance is Apple Music, which has taken off after an initially bumpy start. Pandora is another major competitor, boasting 74.7 million active listeners of its free music stations, which operate much like traditional radio. SoundCloud reports that it reaches 175 million monthly listeners in more than 190 countries, and Google plans to combine its Google Play Music “All Access” on-demand streaming service with YouTube Red. Continue reading Tech Giants Compete in Pursuit of Music Streaming Audiences