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Discussion on: Spotify is making major changes to its royalty model

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Kenshin

In this scenario, a track would have to earn 5 cents per month in order to be paid or, as MBW estimated, about 200 streams per year. Many indie tracks don’t hit this threshold, and so the pennies those artists would otherwise earn will be diverted to Spotify’s “streamshare” pool. That may not sound like a lot of money, but one source told MBW that, when multiplied over the many, many low-play tracks on the streamer, it accounts for tens of millions of dollars. That would instead get distributed to larger artists, who’d get a bigger share of the pooled money.

Why? Like why even bother doing this at all if the payout is going to happen anyways and it’s money out of Spotifys pocket? You might as well pay the little guys and incentivize more music to be added to the platform.