Just 19% of Spotify artists surpass 1,000 monthly listeners in 2023

Changes are afoot in the music streaming industry, particularly at Spotify. The company is rolling out new measures this quarter aimed at combating streaming fraud and addressing the distribution of streaming royalties, with a focus on elevating high-quality content.

Taking cues from Universal Music Group‘s emphasis on an ‘artist-centric‘ approach to streaming, Spotify‘s latest policies prioritize financially supporting ‘premium‘ artists and content, while scrutinizing tracks and creator accounts with lower engagement.

One significant change is the introduction of thresholds for tracks on Spotify to qualify for royalties. To be eligible, a track must have garnered at least 1,000 streams within the past year. This requirement is poised to impact a substantial number of tracks, considering Luminate‘s 2023 Year-End Music Report, which revealed that a staggering 158.6 million tracks received 1,000 plays or fewer on streaming platforms last year.

Additionally, Spotify is implementing a minimum threshold for unique listeners before tracks can receive royalty payouts. Although the exact number hasn’t been disclosed publicly, Spotify cites the need to safeguard against manipulation of the system by malicious actors.

Despite the lack of transparency from Spotify, recent data from Chartmetric sheds light on the reality facing many artists on the platform. These changes signal a shift in the landscape of streaming, where emphasis is placed on quality and engagement over sheer volume.

Full report here.