It seems more fair to me that artists would get a set amount of money per stream, rather than the amount they get being dependent on how many other songs their listeners listened to.
The 700 hour listener has no audience and no human curation, and yet it's got 10x the influence on who gets paid by Spotify.
The article I linked also makes a really good point about this model motivating artists to encourage listeners/fans to listen to whole albums rather than single songs— right now if you're playing Spotify for revenue, the only thing that matters is landing your songs on popular playlists where they will get hundreds of thousands of passive plays. The incentives there are not really aligned to what anyone wants long term out of music.
In fact, having a different fee per play dependent on the user is a pretty opaque and unclear metric. “How much are 1 million plays worth? It depends on your audience - if your listeners listen to lots of music you get paid less per play, and you will just have to trust us to compute an appropriate fee for you correctly.”
No matter how you cut these things there are pluses and minuses . You seem to think that Universal should get paid less for a single Katy Perry stream played from a global playlist compared to a small indie song streamed in a private playlist, and while that’s a valid opinion it’s not intrinsic or even self evident to me.
The reason this is good for artists is that it rewards them for what many want to be cultivating anyway: a relationship with enthusiastic fans, rather than faceless "plays" which could have come from anywhere.
In any case, obviously the conversation is DOA if you start it from a foundational assumption that "a play is a play", but if we acknowledge upfront that artist compensation has always been weird and often quite unfair (see radio royalties, for example— they sure as hell aren't getting compensated by how many people were tuned into a radio station playing their song), then there's room to discuss better options in a new medium that sits somewhere in between the old roles filled by FM radio and private collections of physical media.
That's not my foundational assumption, but I've also not heard a compelling argument that one play / minute streamed should be inherently more valuable than another play / minute streamed.
It's also not clear how this value would be calculated, because I also don't think it's clear that proportion of listen time by user necessarily captures the difference in 'value' of one play against another.
It also feels like it will be very complex to negotiate with rights providers. Spotify's current negotiations with rights providers are really simple and easy to understand - we divvy up our revenue by play count, you are responsible for $x revenue by this metric, so let's negotiate the %. Moving all providers to another weird metric would be an extremely tough thing to do, particularly because having half on one and half on another would likely happen for a crossover, and would result in a loss of profit during the transition period.
The obvious player to offer this competing service is Bandcamp. They haven't yet, though an awful lot of the pieces are in place— they have a mobile app that lets you trivially stream anything you've ever purchased and listen on trial to things you haven't, and it even has genre playlists and recommendations:
https://www.npr.org/2020/08/19/903547253/a-tale-of-two-ecosy...
It's a bit of a catch 22 - these platforms are now where people discover new bands, so if you are not on them people don't discover you so can't buy your album, and if you are on them then people can listen to your album without paying.
Unfortunately I think the truth is that in the future bands will have to think of slightly different monetisation strategies - maybe a mix of subscriber content (see Pomplamoose Patreon as the creators of this concept), fan engagement, merchandise, shows, premium albums that aren't on streaming platforms e.t.c. rather than pulling from Spotify & Apple Music entirely.
Here's a compelling irrefutable argument.
Let's start the discussion from a couple of scenarios. These scenarios are not the definitive and complete set of use-cases, but are enough to prove a point.
Scenario 1: User manually searches for a song and clicks play. Again the following day. Again and again for a couple of weeks/months. The user forgets about the song after that period.
Scenario 2: User creates a playlist and clicks play. Then uses that same playlist again, and again and again for years. Alterantive scenario: users searches for a published album/compilation and plays that playlist again and again for years.
Scenario 3: Streaming service generates a new generic infinite playlist every day, based on a biased algorithm that upvotes some artists and downvotes some other artists. E.g. Playlist called - Discover Daily/Weekly.
Scenario 4. Streaming service generates a new generic infinite playlist every day, but personalized to the users taste and interests, again based on a biased algorithm that upvotes some artists and downvotes some other artists. E.g. Playlist called - Recommended for you today.
Scenario 5. User hits random play and a truly random algorithm decides what will be played next, no matter of musical style, language, culture or any other aspect. Truly random, no biases whatsoever.
So I will argue why not all streams are equal or should not be treated equal.
The difference is the specificity of intent. Whether the user wished to listen to some specific song, or if the user was force-fed some song. For the initial discussion I am assuming force-feeding, later I will discuss alternative scenarios (clicking skip).
In scenario 1 and 2 there is intent from the user what should be streamed, and this means that the user is interested in the music to be streamed. It can not be refuted that the authors of that specific song should be paid for the stream.
In scenario 3 and 4, the user just wishes to have something making noise, not anything specific, but not random. This is fine, if the user is satisfied, but the problem is all algorithms have biases. If the algorithm favors the most popular authors, and the user could be satisfied with anything in the same style and tempo without preferences, than the streaming service is not fair to the authors who are less popular and never gives them a standing chance to compete. This creates a boosting effect so that the most popular become force-fed to the audience involuntarily and they become even more popular. This is a well-known side-effect in all platforms that use popularity as ranking or rating metric. So here, not all streams can be considered equal, since some had higher probability to be present in the playlist due to inherent algorithm biases.
Scenario 5 is the only scenario where the user is force-fed music, but in a manner that is irrefutably unbiased and irrefutably fair to all authors and songs. In such a scenario all get a chance and all such streams are equal. Unfortunately, users that would prefer such a scenario do not exist. Nobody would endure the torture of a truly random playlist for more than 3 songs.
So we have use cases where the users know what they want, and use-cases where the users don't know what they want, but know what they don't want and the streaming service tries to guess what it is that they want next, without truly knowing.
How do the streaming services know what a user does not want? By measuring the % of the stream that went through. If the user managed to suffer only <5 secs before clicking skip, then that stream should not be counted at all towards payment to the musician. If it was 60 secs than it's a different case. If the song went through entirely it's even better. If the user streamed the entire song, and was actively using the app during the whole time than it is an indicator that the user appreciates the song even more than if a passive encounter occurred.
So they try to guess what to play next. With a biased recommender algorithm that tries to recommend what would be a good fit to play next, and as I said the algorithm might favor some musicians over others.
This is a hard problem and is always discussed at research conferences, both by researchers from the streaming services, and by independent researchers. The topics of bias, randomness, satisfaction are always present. Some authors are even using personality traits to discover the type of music that should be streamed next, which is a very very deep breach in user privacy. I imagine that some services might consider eaves dropping on their customers to evaluate if there is true interest and appreciation of the served content - whether the customer is eating, dancing, smiling, chatting, ..., having sex, during the stream. To gather as much data as possible on what is the context, to offer a better aligned next song (if you are a paying customer) of better aligned ads (if you are a non-paying customer).
This is why all streams must not be treated equal, and the streaming services must find a way to be as fair as possible towards musicians (having in mind that no-one likes a random playlist).
As this is a hard problem, I suspect that more and more services will divert their research towards automatically generated music, so nobody will care if the algorigths are fair and if the authors are paid. Music is most susceptible to this, as it is easy to generate music that sounds good enough to a fairly large audience without realizing it is all auto-generated.
Advertisers pay for a radio and tv service, not users, right?
As an aside, I also disagree with "In scenario 3 and 4, the user just wishes to have something making noise, not anything specific, but not random". I don't just want something making noise, I want something making the kind of noise that I like to listen to, which includes a mix of old songs/artists and new ones I've never heard before.
That argument isn't irrefutable at all - let's break it down.
> Scenario 1 & 2 it can't be refuted that artists should be paid for the stream.
Agreed.
> [Scenario 3 & 4] So here, not all streams can be considered equal, since some had higher probability to be present in the playlist due to inherent algorithm biases.
Disagree on the implication here - I don't see why it irrefutably follows that an artist should be paid less for these listens just because its in an automatic playlist (assigned because it matches the same profile as a record I previously liked). What you have here is an opinion, not an irrefutable argument.
My personal opinion is that if you have a streaming service, a minute paid for a minute listened is about as fair as a metric you can get.
Why are my listens, which are mainly from automatic playlists based on my historical listening, less valuable than someone else's listens, just because they listen to cool obscure bands not on the playlists?
Soundcloud has already gone in the direction of paying out based on what you actually listen to, and it would be great to see Spotify and other platforms follow suit. See http://fanpoweredroyalties.com/ for more details on Soundcloud's implementation.
I'm pretty sure that Netflix understands this, by the way— they know that deep-pocketed competitors like Amazon are going to eat their lunch if they try to do mass-appeal prestige shows starring A-list celebs, so they only do a few of those (enough to basically fill the homepage), while leaning hard into extremely niche content. Like, have you seen how many weird cooking shows there are on there? Or Hallmark Christmas movies? This is stuff that's harder to find elsewhere, and there are dedicated audiences on Netflix who are mostly or exclusively consuming it. If Netflix's internal accounting worked like how Spotify pays royalties, those shows would be instantly canceled in favour of new primetime-style sitcoms.
But they aren't, and I think it's because there are pools of their subscribers who will cancel the service if there isn't a steady stream of the specific content they're interested in. Thus, their subscriber $$$ go directly to funding that content, rather than into a general pot that's broken up by raw viewership numbers.
The nice thing about the proposal from the article is that in theory it should be something where everyone's incentives are aligned, since it rewards artists and genres for having fans who listen to their stuff a lot.
Good point. That's the sort of thing that warms the cockles of my artist-supporting heart.
These listens are often passive and should not be considered as valuable as those of someone listens only a few hours a month, but spends all of that time listening to specific artists (indie or otherwise).
Basically the argument is that if I spend $9.99 on a Spotify sub, the entirety of that cash (minus Spotify's cut) should be directed to the actual artists I listened to.
Here's an articulation of this perspective from 2014: https://medium.com/cuepoint/how-to-make-streaming-royalties-...