As Spotify payouts to the music industry continue to grow – over $48B and counting – we want to make sure that the money is going to the people our platform is designed to enable: emerging and professional artists.
However, as the royalty pool and catalog on Spotify have surged, three particular drains on the royalty pool have now reached a tipping point. So, we’re working in close collaboration with industry partners – artist distributors, independent labels, major labels, label distributors, and artists and their teams – to introduce new policies to (1) further deter artificial streaming, (2) better distribute small payments that aren’t reaching artists, and (3) rein in those attempting to game the system with noise. While each of these issues only impacts a small percentage of total streams, addressing them now means that we can drive approximately an additional $1B in revenue toward emerging and professional artists over the next five years.
You can read more about the new policies here.