Spotify is rumored to be reducing royalty payments to less popular artists

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Currently, Spotify compensates artists with a fraction of a cent for each streamed song, typically ranging from $0.003 to $0.005 per stream.

Smaller musical acts and independent artists utilizing Spotify for their music distribution might face further reductions in their earnings due to purported adjustments in the platform’s royalty payout structure.

The pervasive streaming service has long been criticized for its perceived inequitable compensation to artists. It particularly affects emerging bands, indie musicians, and less-recognized songwriters who already receive meager payouts from Spotify.

Social media post from the United Musicians and Allied Workers:

Universal Music Group (UMG) is one of the record companies with which Spotify is currently in talks. According to NME, the CEO of UMG announced a “newly expanded agreement” with Spotify that will be “artist-centric” and help “real artists with real fanbases.”

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The uncertainty surrounding Spotify’s precise methods for recalculating royalty payouts arises from the necessity for renegotiating contracts with the majority of record labels and distribution partners, making the full scope of the changes uncertain at this time.

However, commencing in 2024, some lesser-known artists might encounter even more diminutive payouts, as revealed in a recent article by Music Business Worldwide.

It is said that the Spotify royalty plan will go into effect early next year.

Image Credits: © Haithem Ferdi @haithemfrd_off | Unsplash

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Marya Khan
Marya Khan
Who am I? Marya, an adept content writer, verily knows to pen down words in a sophisticated manner. Besides being a good writer, I own interest in other artistic fields which include... everything! I'm a lot into travelling. Thus, doing so from one phase to another phase of life, while keeping an eye on my top-secret goal. I make many mistakes and still on it. I swear the keen purpose of continuous failing is learning only. Yes, I'm humorous too! I might not want to write "I can do this and that", nor you'd be interested in reading long-drawn boring paragraphs, so let's connect!


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