Spotify Takes A Stand Against Fraudulent Streams, New Royalties Model To Penalize Labels

BYTallie Spencer3.5K Views
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Musical Website Spotify Illustration In Paris
PARIS, FRANCE - JANUARY 06: In this photo illustration, the logo of the Swedish music streaming service Spotify is displayed on the screen of an iPhone on January 06, 2017 in Paris, France. Spotify announced, via a tweet published Thursday, that it now has 70 million paid subscribers. As a comparison, in September, Apple Music claimed 30 million subscribers and Deezer had fewer than 10 million subscribers. Spotify, the world's largest streaming music company, is expected to be listed on the Wall Street stock market in the first quarter of 2018. (Photo by Chesnot/Getty Images)
Spotify is making changes once again.

In a bold move to combat fraudulent streaming, Spotify has introduced a new measure that will hit labels in the pocketbook when their songs amass more than 90% fake streams. Under the music streaming giant's new royalties model, labels or distributors found guilty of such manipulation will face a financial penalty of 10 euros per offending track, marking a significant step in the ongoing battle against artificial inflation of streaming numbers.

The new development sheds light on Spotify's determination to ensure fair compensation for artists and maintain the integrity of its streaming platform. The initiative reflects the platform's commitment to fostering a transparent and trustworthy environment for both creators and listeners. The decision to fine labels when fraudulent activity surpasses the 90% threshold signals a shift in Spotify's approach to combating stream manipulation. This measure not only holds labels accountable for the authenticity of their streaming numbers but also acts as a deterrent for those considering engaging in fraudulent practices.

Spotify Is Cracking Down

This illustration picture taken on July 24, 2019 in Paris shows the logo of the Swedish music streaming application Spotify on the screen of a tablet. (Photo by Martin BUREAU / AFP) (Photo credit should read MARTIN BUREAU/AFP via Getty Images)

Fraudulent streams have long been a concern within the music industry, impacting the revenue and recognition rightfully owed to artists. Spotify's proactive stance on this issue demonstrates a commitment to rectifying the imbalance and creating a more equitable landscape for musicians. The 10 euros per offending track penalty is a clear message that Spotify is serious about cracking down on fraudulent activities. Emphasizing the financial consequences for those attempting to game the system. This move aligns with Spotify's broader mission to ensure that artists receive fair compensation for their work and that the platform remains a reliable metric for measuring an artist's true reach and popularity.

As the music industry grapples with evolving challenges in the digital era, Spotify's decision to implement financial penalties for fraudulent streams sets a precedent. It's possible that streaming platforms will follow suit. This also reinforces the importance of maintaining a trustworthy ecosystem for artists, labels, and listeners alike. With this new royalties model in place, Spotify aims to reshape the landscape, discouraging fraudulent practices and fostering a more authentic and sustainable future for the music industry. The news comes among other updates that Spotify recently announced. Just last week, they raised the threshold in which artists can earn royalties. Songs are now required to reach around 200 annual streams before Spotify will pay the artist.

About The Author
@TallieSpencer is a music journalist based in Los Angeles, CA. She loves concerts, festivals, and traveling the world.