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Spotify’s New Royalty Rules Shift $47 Million From Indie Artists to Major Label Stars
Under Spotify’s new royalty model, only 13% of music is deemed economically worthy
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Did you hear about Spotify’s new policy that decides which artists deserve to be paid?
In late 2023, Spotify implemented a rule¹ that separated artists into two categories: those whose tracks generate at least 1,000 streams annually and receive royalties, and those who don’t.
While they frame this as ‘better supporting those most dependent on streaming revenues,’ they’ve essentially created a threshold below which 87% of tracks on their platform are deemed unworthy of compensation².
When Spotify speaks of supporting ‘emerging and professional artists,’ they’re drawing an invisible line. Their policy suggests a subtle but significant distinction: music that doesn’t reach 1,000 annual streams simply doesn’t merit compensation.
This market-based valuation system determines which creative work has economic worth — while conveniently overlooking how their own playlist algorithms influence which artists have the opportunity to cross that threshold in the first place.
