A New Era for Artists: Universal Music Group and Deezer Revolutionize Streaming Payment Model

İrem Uğur
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In a groundbreaking move, Universal Music Group (UMG) and Deezer are set to reshape the landscape of music streaming payments with the introduction of an 'artist-centric' model. Acknowledging the flaws of the existing payment structure that disproportionately benefits superstars, this collaborative initiative aims to better reward professional artists, recognize fan engagement, and address the issue of non-artist noise content. This article explores the details of the new model, its potential impact on artists, and the industry's quest for a fairer compensation system.

Reimagining Streaming Economics: The Need for Change

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The current music-streaming payment model, created over 15 years ago, is under scrutiny for its inadequacies. The aggregate model, where artists are compensated based on their percentage of total streams, often favors superstars, leaving most artists with a fraction of the earnings. Acknowledging these disparities, Universal Music Group and Deezer are pioneering an 'artist-centric' model designed to rectify these imbalances and provide a more equitable system for creators.

Deezer's Double Boost: Recognizing Professional Artists and Fan Engagement

Deezer's new model introduces a 'double boost' for what they define as 'professional artists' — those with a minimum of 1,000 streams per month by at least 500 unique listeners. This innovative approach aims to reward artists for the quality and engagement they bring to the platform and their fanbase. Additionally, a double boost is assigned to songs actively engaged with by fans, reducing the impact of algorithmic programming and elevating the value of artist-fan relationships.

Trimming the Noise: Addressing Non-Artist Audio and Fraud

A key aspect of the new model is the emphasis on eliminating what Deezer terms 'noise audio' — non-artist content like recordings of water running or ambient sounds. By removing such content from the royalty pool, the streaming service seeks to prioritize genuine artistic contributions. Moreover, the model includes measures to tackle fraud, employing a strict fraud detection system to protect streaming royalties for artists and discourage bad actors within the platform.

Deezer's CEO Speaks: Ambitious Change for a Fairer Future

Jeronimo Folgueira, CEO of Deezer, emphasizes the significance of this shift, calling it 'the most ambitious change to the economic model since the creation of music streaming.' The company's commitment to prioritizing high-quality content, eliminating wrong incentives, and protecting artists is at the forefront of this transformative initiative. Folgueira underlines the importance of recognizing that all content is not equal and that artistic creations hold unique value.

UMG's Perspective: Mitigating Dynamics and Supporting Artists

Michael Nash, UMG's EVP and Chief Digital Officer, emphasizes the multifaceted approach of the artist-centric model. With the goal of mitigating dynamics that risk drowning music in a sea of noise, the initiative aims to support and reward artists at every stage of their careers. Nash highlights the importance of recognizing and appropriately compensating artists, irrespective of their fanbase size.