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From AI-Streaming Fraud to Royalties battles - WR #161
Weekly Roundups
May 12, 2023

From AI-Streaming Fraud to Royalties battles - WR #161

Welcome to our Weekly Roundup that delves right into the diverse facets of the music industry. This week, we will cover topics ranging from AI-streaming fraud and streaming royalties to the emergence of artist-fan tools. We also shine a spotlight on the journey of Taylor Swift as she continues her fight for rights and creative control. Explore with us the evolving landscape of the music industry!

#1. Spotify Takes a Stand Against AI-Powered Music Streaming Fraud

With the rise in popularity of AI-based tools, the music industry faces a new enemy: bot farms that manipulate streaming data. In fact, "the threat to human creativity" is just one of the side effects of this powerful technology.

This is why Spotify, the renowned music streaming service, is stepping up its efforts to combat fraudulent streaming practices driven by AI. Spotify must therefore take action to prevent copyright disputes and financial losses resulting from false flows.

Spotify claims that Artificial streaming is a longstanding, industry-wide issue that Spotify is working to stamp out across our service.” The recent actions of the Swedish company include the temporary removal of hundreds of thousands of songs created on the AI Boomy platform due to suspicious listening activities.

#2. How much do Major Label Pop Bands earn from Spotify Royalties?

A recent Spotify royalties study by industry researcher Daniel Johansson provides insights into the earnings of commercially successful pop bands signed to major labels. The study, which analyzed over 8 000 Swedish artists with more than 1 million streams on Spotify, showed that while world-renowned artists accounted for a significant portion of streams, the royalties earned were not substantial.

But what does that actually mean? For example, a pop band signed to a major label for over 30 years and with 300 million Spotify streams since 2008 would have generated revenue between $900,000 and $1.5 million, resulting in monthly earnings of $270 to $450 per member. Thus, The study highlights again the complexity of royalty deals, with unsigned artists potentially earning higher royalties per stream.

It is no coincidence that Snoop Dogg has urged music artists to follow the strike of the Writers Guild of America (WGA) and boycott streaming services. Speaking on a panel, Snoop criticized the lack of fair pay for artists, despite the huge profits generated by streaming platforms. The rapper and entrepreneur stressed that artists with billions of flows do not receive substantial gains, and therefore "where is  the money?"

#3. SoundCloud Introduces Direct Messaging Tool to Strengthen Artist-Fan Bonds

Fan support plays a crucial role in the success of artists, both artistically and economically. Acknowledging this fact, Soundcloud, the popular music streaming platform, has recently introduced a powerful tool called "Fans" to facilitate deeper connections between artists and their supporters.

The Fans tool allows artists to send up to 50 messages per day, enabling them to engage directly with their fanbase. This enhanced communication channel provides artists with a unique opportunity to strengthen their relationships with fans and cultivate a loyal following. Concretely, ensuring that artists receive fair compensation for their music based on fan support and engagement.

As Soundcloud competes with other streaming services like Spotify, the introduction of the Fans tool sets it apart by offering artists a distinct way to stand out and maximize the potential of their fan connections.

#4.TikTok Empowers Artists and Creators with New 'Work with Artists' Feature

TikTok is making strides to foster artist engagement and expand its audience reach. Introducing the innovative 'Work with Artists' feature, the Social Media platform now enables users to initiate monetization campaigns alongside their favorite creators.

By crafting captivating videos featuring the designated song, users have the opportunity to earn rewards based on the success and resonance of their content. In a bid to encourage collaboration and music usage, artists and labels can also establish rewards budgets, nurturing a mutually beneficial relationship between artists and users.

The 'Work with Artists' feature could mark a significant step forward in the attempt of TikTok to explore innovative avenues for artist engagement and community building.

#5. Taylor Swift Re-Releases 'Speak Now (Taylor's Version)'

Taylor Swift has been on a mission to reclaim her rights and earnings that were lost due to unfavorable contracts and agreements throughout her career. Through strategic moves and determination, she has managed to regain control over her work and its financial benefits.

Taylor Swift has announced the upcoming release of her re-recorded album, "Speak Now (Taylor's Version)” set to debut on July 7. Making the revelation during her Eras Tour stop in Nashville, she delighted fans by revealing that the album will feature six previously unreleased tracks from the original era. This re-recording project stems from Taylor Swift's desire to regain control over her catalog. With the release of "Speak Now (Taylor's Version)," she continues her efforts to re-record her albums that were released prior to "Lover."

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