The U.S. record label and the French streaming platform announced a model Wednesday that will provide a “double-boost” to artists with at least 1,000 monthly streams—that is, double the weight given in the calculation of royalties to material produced by non-professionals. It will provide an additional double-boost to songs that fans seek out. (The Logic)
Talking point: The model is intended to be artist-centric, shifting money away from formless “noise” audio uploaded by bots and amateurs and toward professional musicians, UMG chief digital officer Michael Nash said in the release. The agreement is expected to increase payouts to artists by 10 per cent, the first major shift in the music-streaming business model since Spotify’s launch in 2008. In the past, the existing model of royalty payouts has been a point of contention between artists and streaming platforms.