Spotify adjusts payment model, songs that are played less than 1,000 times a year will not be paid

Spotify today announced a new streaming pay policy that affects artists and labels. According to the new policy details, songs that are played 1,000 times or less per year will no longer receive any compensation, which could be detrimental to niche artists

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Spotify is already notorious for underpaying artists, and now many artists will receive nothing. Spotify says this is to eliminate fraud, adding that money originally allocated to these niche artists and alleged fraudsters will be reallocated to songs that are played more than 1,000 times a year.

Additionally, the company is no longer paying for so-called "noise" content, such as recordings of rain falling on a roof and other content designed to relax and provide white noise. This does not affect all noise content, only those that are less than two minutes in length. Separately, Spotify is currently looking to adjust its royalty model for noise recordings to be lower than what it pays for real songs. However, the company did not provide any specific details.

Spotify claimed that these measures will provide artists with an additional $1 billion in revenue over the next five years (note from this site: currently about 7.14 billion yuan), but it did not provide details on how the funds will be reallocated. Let’s just say that the company doesn’t “make extra money” under this model.

Spotify notes that 99.5% of streamers meet the above threshold, but also says that the remaining 0.5% only account for $40 million per year. Spotify also claims that songs that are played less than 1,000 times a year only generate an average of $3 in revenue per year, which isn’t much.

Spotify says creators of fraudulent content often "game the system" by posting large numbers of tracks and earning pennies per track, adding up over time. Spotify hopes the 1,000 plays threshold will deter this behavior at the expense of niche artists.

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