Streaming payouts are changing now due to the modernization of the outdated royalty payment structures, necessitated by the increase in the volume of content uploaded onto streaming platforms. As new tracks rose by 11% year-over-year in 2023, coupled with the rise of Generative AI, there is an urgent need for a more equitable streaming payout model that reflects the value of professionally produced content. Deezer and Spotify have already begun implementing changes to address these issues, aiming to enhance the monetization pathway for artists and reduce inappropriate payouts linked to lower-quality content[1].
These adjustments are part of a broader vision for improving artist royalties, which can help retain market share in a growing landscape of music streaming where fraud and noise have contributed to dilution of payouts[1].
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