Revolutionising the Music Industry: Spotify, NFTs, New Platforms and the Pursuit of Fair Remuneration for Artists

While Spotify provides exposure to a vast audience, the per-stream payout is often criticised for being insufficient to sustain many artists financially. Moreover, starting in 2024, Spotify ceased payments for roughly two-thirds of tracks on the platform—specifically, any track receiving fewer than 1,000 streams over the period of a year. While these tracks will continue to accrue royalties, this change redirects those royalties upwards, often benefiting bigger artists rather than their own rights holders. Spotify pushed through these changes, because some labels or distributors were generating artificial streams with bots or click-farms fraudulently inflating an artist’s streaming figures, and siphon off royalty payments from Spotify.

Some independent artists, like LA-based musician Brandon Washington, express criticism regarding Spotify’s implementation of a minimum requirement of 1,000 streams for tracks to receive royalties. Washington believes this threshold is too high and argues that placing a numerical value on music undermines its artistic value. He acknowledges the issue of fraudulent streams but is skeptical about Spotify’s payment system and its implications for small, independent artists.

Amelia Fletcher, an academic at the University of East Anglia, shares similar concerns, emphasizing the validity of all artistic endeavours regardless of compensation. She suggests that Spotify should adopt a “user-centric model” where payments are distributed based on individual listeners’ preferences rather than total platform streams. The adjustment of Spotify’s royalty payment structure has intensified discussions about the need for a fairer remuneration model, especially for emerging, independent and unsigned artists and performers who are outside the musical mainstream, that is typically regarded as more eclectic, original, or challenging than most popular music.

Live shows, musicians unions and Covid-19 

As streaming revenues decline, income from live performances becomes increasingly important for an artist’s financial stability. Income from live performances includes not only ticket sales, merchandise, and VIP experience, but also substantially enhances an artist’s visibility, often leading to increased streaming numbers and music sales. Many musicians depend on live performances for immediate income and view concerts and tours as crucial opportunities. These events allow artists to showcase their talent, connect with fans personally, and solidify their presence in the industry.