Deezer is looking to create a new royalty system, that will better distribute funds to artists. Currently, Deezer is attempting to secure the necessary rights to launch its new royalty system. The company is hoping to launch its user-centric payment system as a test program in France. If the test phase works out, then the new payment structure will receive a global release.
Currently, the payment system for Deezer operates as a percentage of total plays on the platform. However, under the user-centric payment system, a user's subscription fee would go only to the artists that they listen to. Forty music labels have already agreed to the new system, and Deezer hopes to continue getting more rights.
Music Streaming Payment Changes
Deezer is Attempting to Implement a New Royalty System for Artists
Trend Themes
1. User-centric Royalty System - Deezer is attempting to implement a new royalty system that will distribute funds to artists based on user listening habits, presenting an opportunity for streaming platforms to create similar systems.
2. Label Collaboration - The collaboration between Deezer and forty music labels to implement the user-centric payment system opens up the opportunity for more streaming platforms to partner with and collaborate with major labels to implement changes in the industry.
3. Global Payment Structure - If Deezer's user-centric payment system performs well in France and has a successful global release, it would create opportunities for other streaming platforms to follow in their footsteps and implement a similar payment structure across the globe.
Industry Implications
1. Music Streaming - The new royalty system being developed by Deezer presents a disruptive innovation opportunity for streaming platforms to review their current payment structure and consider implementing a more fair compensation model for artists.
2. Music Labels - The collaboration between Deezer and forty music labels to create a new royalty system presents an opportunity for more music labels to work with streaming platforms to create more transparency in artist payments and potentially shift the industry standard.
3. Music Technology - If Deezer's user-centric payment system receives a global release, it presents an opportunity for music technology companies to enhance their products and services, by supporting this new royalty system and contributing to creating more fair compensation for artists.