Universal Music Group and Deezer Strike Streaming Deal to Boost Payouts for Professional Artists

New streaming deal between Universal Music Group (UMG) and Deezer aims to direct more listener payouts towards professional artists, countering the current payment model based solely on total listens.

Universal Music Group (UMG) and French music service Deezer have announced a groundbreaking streaming deal that seeks to revolutionize the economics of music streaming. The deal, described as the "most ambitious change" since the inception of music streaming, aims to direct more revenue towards professional artists by counting a single listen as two listens on popular tracks. This move will effectively increase payouts for big stars as well as up-and-coming bands, while disincentivizing amateur tracks and fraudulent streams. Body:

A Shift Towards Valuing Professional Artists

The new streaming deal between UMG and Deezer marks a significant departure from the current payment model used by platforms like Apple Music and Spotify. Currently, payments are divided based on total listens, regardless of the track or the artist. However, under the new deal, "professional artists" will see a 10 percent increase in payouts. To qualify for the increased payouts, artists need a minimum of 1,000 streams per month by at least 500 separate users. If users actively search for specific artists and tracks, the values can double to the equivalent of four streams.

The End of Non-Artist Ambient Noise

Deezer CEO Jeronimo Folgueira emphasizes that not all content holds the same value, stating, "There is no other industry where all content is valued the same, and it should be obvious to everyone that the sound of rain or a washing machine is not as valuable as a song from your favorite artist." In line with this sentiment, Deezer will demonetize tracks detected as non-artist ambient noise. The company plans to replace these tracks with a new in-house library of sounds and will not collect any royalties on the upcoming noise tracks.

Protecting Streaming Royalties and Combating Fraud

The UMG and Deezer deal also aims to protect streaming royalties for artists by discouraging amateur tracks and unauthorized uploads. Deezer's systems detected approximately 7 percent of streams in 2022 as fraudulent, identifying fake accounts and payment fraud. By shifting the payment model to favor professional artists, the deal seeks to incentivize genuine streams and combat fraudulent practices.

Expanding Beyond UMG

Deezer CEO Jeronimo Folgueira reveals that several other labels are already signing up for the new model, indicating a potential expansion beyond UMG. The goal is to achieve a full rollout with all content providers and countries by 2024. Conclusion: The streaming deal between Universal Music Group and Deezer represents a significant step towards valuing professional artists and directing more revenue their way. By counting popular tracks as two listens and disincentivizing amateur tracks, the deal aims to address the current disparity in streaming royalties. Furthermore, the move highlights the industry's recognition that not all content holds the same value. As the streaming landscape continues to evolve, this deal sets a precedent for other platforms and labels to prioritize the interests of professional artists and ensure a fairer distribution of streaming revenue.