Spotify Launches New Monetization Policy For Artists And Labels

Spotify launches the latest monetization policy (photo: dock.unsplash)

Spotify launched a new policy regarding the monetization system on its platform for artists and labels. However, this policy is considered detrimental to artists with a small number of streaming.

Starting next year, artists with a number of streams below 1,000 cannot get paid from Spotify. In fact, in 2021, Spotify sets a minimum threshold of 250 streams for 1 US dollar (IDR 15,582).

The change in the monetization system for artists and labels is deliberately applied by Spotify to obtain additional funds. However, these funds will not be used for the company's personal needs, but to be given to newcomer artists in the future.

"Although each of these issues has only had an impact on a fraction of the total streams, overcoming them now, means we can increase an additional revenue of about $1 billion for newcomer and professional artists over the next five years," Spotify wrote in a release.

In addition to the amended monetization policy, Spotify also plans to charge labels and distributors if their songs are detected as streaming scams to manipulate the number of streams.

This policy comes as Spotify finds many fake content creators playing with the system to get a large number of streams to earn more money.

Not only that, songs consisting of non-music audio such as static sounds, aircraft sounds, and other forms of audio with audio can only get paid from Spotify if their songs are listened to for more than two minutes.

Ket. photo: