Popular music streaming platform, Spotify, has reportedly unveiled a new web portal, dubbed Loud & Clear, which highlights how streams are determined and paid out on Spotify. The website has apparently been launched after Spotify faced a series of protests from the Union of Musicians and Allied Workers over its payment policies.
Announcing the launch, Spotify founder and CEO, Daniel Ek, stated that now over 57K artists represent 90% of monthly streams on Spotify, indicating that the number has quadrupled in just six years. Ek also added that the company aims to help the musicians who aspire to be or are professional to make money.
Speaking on similar lines, vice president and head of marketplace at Spotify, Charlie Hellman, stated that the initiative is aimed at offering songwriters and artists a better clarity regarding streaming economy. There have been regular discussions in the company regarding artist royalties and payouts, but Spotify has hardly talked on the topic publicly.
Through this initiative the company is trying to share more and acknowledge that artists deserve higher transparency regarding the functioning of music streaming economy, Hellman added.
Sources have confirmed that Loud & Clear provides various resources to that end, such as a video named “Loud & Clear: How the Money Flows” and a section containing statistics showing the number of artists reaching various revenue thresholds on Spotify.
As per the data, in 2020, 870 artists each generated more than $1 million from recording and publishing royalties; 1,820 earned over $500,000; 7,800 earned over $100,000; and 13,400 earned over $50,000. Additionally, at the bottom of the portal, there is an FAQ and question form where artists can submit their feedback.
Hellman has claimed that the incentives offered by Spotify are aligned with those of artists. He also cited the data and substantial year-on-year growth in artists attaining these royalty numbers. For instance, the total number of artists who can generate $50,000 worth of royalties or more per year has increased by 80% over a duration of four years, from 7,300 in 2017 to 13,400 in 2020.