FT: Universal Music Looks to Overhaul Streaming
Jan 31, 2023 10:50:58 GMT -5
Post by Deleted on Jan 31, 2023 10:50:58 GMT -5
I thought this from the Financial Times is relevant for discussion. Not the full article, but I've included some of the important parts.
In sum, Universal is in talks to overhaul the streaming services. Measures would include "superfan" streaming tiers, elimination of bots, prevention of uploads of short 31 second songs. They argue artists, specifically newer artists, would benefit from these changes.
In sum, Universal is in talks to overhaul the streaming services. Measures would include "superfan" streaming tiers, elimination of bots, prevention of uploads of short 31 second songs. They argue artists, specifically newer artists, would benefit from these changes.
Universal Music is in talks with big music platforms to overhaul the economics of streaming to direct more money towards artists and away from bad actors, considering options such as adding more expensive “superfan” subscriptions, according to people familiar with the matter.
The industry is also contending with a growing number of bad actors who manipulate the system by using bots to inflate listening figures and uploading 31-second clips that are just long enough to qualify as a “play”.
“You have a quantity over quality challenge right now,” Michael Nash, Universal Music Group’s chief digital officer, told the Financial Times. “That’s making it harder for new artists to establish themselves, for new releases to come through.”
Many musicians say the current system deprives them of the ability to make a living, while the major labels have bemoaned the addition of “lower-quality” songs — such as ambient sleep tracks — arguing they undermine the experience for listeners and pull money away from legitimate artists.
Tidal, the streaming service founded by rapper Jay-Z in 2014, is one of Universal’s early partners in exploring ways to change the streaming model. Universal is also in discussions with other big streaming services in the space, according to people familiar with the matter.
In the first phase of the overhaul, Universal wants to stamp out online bots and other parties posing as human listeners. Beatdapp, a start-up focused on identifying streaming fraud, estimates that about 10 per cent of all streams on US platforms are fraudulent.
Another possibility being discussed is banning 31-second clips, which have become widespread because a song must be listened to for more than 30 seconds in order to generate revenue. “There is no artistic intent behind having a 31-second track,” said Nash.
Conversations are in early stages, but one strategy being examined is creating a “bonus pool” of money for artists who are driving more value to platforms by generating many streams from new users. Universal and Tidal are exploring ways to measure fan engagement, such as tracking the sharing of songs on social media.
Another option is to introduce a superfan tier of streaming subscriptions that would charge fans for extra perks or access to their favourite artists.
Under the current system, the total royalty income generated on a streaming platform is pooled together, then divided up among the owners of the music based on their share of total streams. Critics argue that this structure gives an incentive to artists to create shorter songs in order to maximise repeated “plays” and increase their share of the money.
The call for change comes as industry executives say streaming has flattened the way revenue is distributed. Since users consume music more passively, musicians are not fairly rewarded for being actively sought out.
Ultimately, the new model will be different across the various streaming services, Universal executives expect, which would be a change from the $10-a-month pricing model that has prevailed.
The industry is also contending with a growing number of bad actors who manipulate the system by using bots to inflate listening figures and uploading 31-second clips that are just long enough to qualify as a “play”.
“You have a quantity over quality challenge right now,” Michael Nash, Universal Music Group’s chief digital officer, told the Financial Times. “That’s making it harder for new artists to establish themselves, for new releases to come through.”
Many musicians say the current system deprives them of the ability to make a living, while the major labels have bemoaned the addition of “lower-quality” songs — such as ambient sleep tracks — arguing they undermine the experience for listeners and pull money away from legitimate artists.
Tidal, the streaming service founded by rapper Jay-Z in 2014, is one of Universal’s early partners in exploring ways to change the streaming model. Universal is also in discussions with other big streaming services in the space, according to people familiar with the matter.
In the first phase of the overhaul, Universal wants to stamp out online bots and other parties posing as human listeners. Beatdapp, a start-up focused on identifying streaming fraud, estimates that about 10 per cent of all streams on US platforms are fraudulent.
Another possibility being discussed is banning 31-second clips, which have become widespread because a song must be listened to for more than 30 seconds in order to generate revenue. “There is no artistic intent behind having a 31-second track,” said Nash.
Conversations are in early stages, but one strategy being examined is creating a “bonus pool” of money for artists who are driving more value to platforms by generating many streams from new users. Universal and Tidal are exploring ways to measure fan engagement, such as tracking the sharing of songs on social media.
Another option is to introduce a superfan tier of streaming subscriptions that would charge fans for extra perks or access to their favourite artists.
Under the current system, the total royalty income generated on a streaming platform is pooled together, then divided up among the owners of the music based on their share of total streams. Critics argue that this structure gives an incentive to artists to create shorter songs in order to maximise repeated “plays” and increase their share of the money.
The call for change comes as industry executives say streaming has flattened the way revenue is distributed. Since users consume music more passively, musicians are not fairly rewarded for being actively sought out.
Ultimately, the new model will be different across the various streaming services, Universal executives expect, which would be a change from the $10-a-month pricing model that has prevailed.
