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Music platforms making headlines for remuneration - WR #182
Weekly Roundups
October 6, 2023

Music platforms making headlines for remuneration - WR #182

Again, this week, music platforms (mainly streaming but not only) have been at the forefront of some decisions and changes. From stances on AI to meeting up in real life at FMF 2023, let’s dive in!

#1. Spotify won't ban AI-generated music

Let’s get started with an expected piece of news. Daniel Ek has confirmed in an interview with the BBC that AI-generated songs will not be banned from Spotify.

Recently, the number of songs created through AI tools have increased and made millions of streams on the platform. Which could become an issue in the future if we’re not able to set up regulations quickly.

However, Ek made it clear that using AI to optimize music creation is still a strong use of the technology. There’s really no point in pretending it doesn’t exist, but there should be limits to it (such as impersonating artists). Although Spotify is banning tracks for suspicion of an inflated number of streams and claims that they won’t let their content be used for machine learning, their stance on how to manage AI-generated content on the platform remains unclear.

In parallel, it’s worth noting that Spotify has patented a technology that allows them to compile users’ voice recordings with songs

#2. Bandcamp switches hands again, what now?

It seems that the goal stated by Epic Games to “building the most open, artist-friendly ecosystem in the world” with Bandcamp has come to an end. We told you last week that Bandcamp went from Epic Games to Songtradr.

But this came with a bunch of questions. Music Business Worldwide went through all of them, starting with the fact that no music company jumped on the occasion, despite the fact that hardcore fans are making great revenue for their favorite artists (not mentioning how the data could help understanding these fanbases). Or we could also wonder about the fact Songdtradr may not only focus on B2B strategies but also stepping into the direct-to-fan market.

#3. Wagram Music is the new partner Deezer will unroll user-centric model with

Wagram Music has officially inked a deal to tap into the much-debated artist-centric model that Deezer initiated with Universal Music Group (UMG).

The model, scheduled to go live in France in October, aims to improve royalties for professional artists. But it comes with a lot of questions since it focuses particularly on those generating over 1,000 monthly streams from more than 500 listeners. We have been talking about it lately; not everyone is happy with these announcements. 

Deezer has indicated that Wagram artists will receive the same royalty payments as other artists using this model. Some parties, such as Believe and IMPALA, have expressed concerns about the lack of collaboration and transparency in the development of the artist-centric model.

#4. Is Spotify going towards its darkest period?

That seems to be the position for one of the most influential investing firms. Very simply put: Spotify is riding a favorable long-term trend, enhancing its platform, tapping into a large digital ad market, expanding its audio offerings, and improving its cost structure,” Monness analyst Brian White noted. “However, competition is fierce, margins thin, and we believe the darkest days of this downturn are ahead of us.

Deeper numbers are available on Digital Music News, but in a context in which streaming platforms are slowly raising their prices to increase their margins gradually, there seems to be very little margins indeed.

#5. Future Music Forum is over for 2023

You may have seen it, Reprtoir’s team was FMFM 2023! A great way to connect with a musictech ecosystem that has been getting stronger lately, back in Barcelona. Discover about it!

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