Universal Music Group Debuts a New Royalty Model for Popular Songs
Kanesa David — September 7, 2023 — Business
References: universalmusic & theverge
Universal Music Group (UMG) introduced a new partnership with Deezer that will help provide artists with more revenue opportunities for music streams. To do this, the companies are now counting one listen as two listens on songs that have gained significant popularity.
In order to meet the criteria for the new payout rates, artists must achieve a baseline of 1,000 monthly streams, with these streams originating from a minimum of 500 distinct users.
Furthermore, the payout values have the potential to undergo a double increase, equating to the value of four streams, provided that users proactively search for and actively select specific artists and tracks for playback. Deezer will also demonetize tracks detected as non-artist ambient noise.
Image Credit: Universal Music Group (UMG)
In order to meet the criteria for the new payout rates, artists must achieve a baseline of 1,000 monthly streams, with these streams originating from a minimum of 500 distinct users.
Furthermore, the payout values have the potential to undergo a double increase, equating to the value of four streams, provided that users proactively search for and actively select specific artists and tracks for playback. Deezer will also demonetize tracks detected as non-artist ambient noise.
Image Credit: Universal Music Group (UMG)
Trend Themes
1. Increased Revenue Opportunities - Universal Music Group's new partnership with Deezer offers artists the chance to earn more money from music streams by counting one listen as two for popular songs.
2. Streamlining Payout Rates - By requiring a certain number of monthly streams and distinct users, Universal Music Group is implementing a new royalty model that ensures fair compensation for artists.
3. Incentivizing Artist Selection - Deezer's double increase in payout values motivates users to actively search for and select specific artists and tracks, leading to potential higher earnings for the artists.
Industry Implications
1. Music Streaming - Universal Music Group's partnership with Deezer introduces a new royalty model, creating opportunities for artists to earn more revenue from music streams.
2. Digital Music Distribution - The collaboration between Universal Music Group and Deezer revolutionizes the way artists are compensated for their music, potentially disrupting the digital music distribution industry.
3. Music Platforms - Deezer's demonetization of non-artist ambient noise tracks opens up possibilities for innovative music platforms that focus on promoting genuine artist content.
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