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Deezer's Artist-Centric Model A New Era for Music Streaming Fairness?

Deezer's Artist-Centric Model A New Era for Music Streaming Fairness? - Deezer's Artist-Centric Model Launches in France Q4 2023

DJ playing DJ turntable, It was wild.

Deezer's plan to introduce an artist-centric model in France starting in the final quarter of 2023, in partnership with Universal Music Group, presents an interesting proposition. The core idea is to change how royalties are distributed, moving away from the current system which many feel underpays artists. Deezer intends to base payouts on how listeners interact with music, essentially rewarding artists whose work is actively sought after. It's a strategy that could potentially elevate the role of the artist in the streaming world.

However, alongside this shift, Deezer also intends to strengthen platform policies to improve the overall listening experience and potentially cut down on content that isn't directly linked to artists. Whether this will truly enhance the listening environment remains to be seen and may impact what users are exposed to on the service.

This move by Deezer reflects a wider industry debate about fairer payment structures for artists. It remains to be seen if the initiative will genuinely achieve its objectives of improving artist compensation and the overall listening experience while managing the concerns around the reduction of certain kinds of content on the platform. This new direction could, potentially, reshape the dynamics between artists and streaming services in the long run.

Deezer's planned rollout of their artist-centric model in France by the end of 2023, in partnership with Universal Music Group, seems to be a significant step. They're aiming to connect royalty payouts more directly with listener engagement, a shift from the current system which many artists have deemed unfair. This means that if a listener chooses a certain track more often, the artist receives a larger portion of the revenue.

It's interesting to consider that the policies supporting this model also include tighter content control. This suggests Deezer is looking to refine the experience for listeners, perhaps by limiting non-artist content. This push toward user experience and artist control presents a unique approach to managing the platform and its content. It's a collaborative effort with UMG to create a framework that, in theory, aligns more closely with the actual value that artists contribute to the overall music landscape.

Essentially, this approach centers around a fundamental rethinking of how platforms distribute revenue from streaming. Instead of relying on a blanket approach to royalties, it highlights the act of individual users choosing to listen to certain tracks. This could change the dynamics of the entire music streaming sector and prompts interesting questions about artist visibility and the sustainability of their work. It's an attempt to move beyond the traditional structure and achieve greater fairness. And though this is just one platform starting in France, the outcomes could inspire similar efforts throughout the music and audio industry.

Deezer's Artist-Centric Model A New Era for Music Streaming Fairness? - Industry Response to Demands for Fairer Compensation

man in gray quarter-sleeved shirt singing, Lead Singer

The demand for fairer compensation for creators within the audio industry, including music, voice cloning, podcasting, and audiobook production, is leading to significant changes in how platforms operate. Deezer's Artist-Centric Model, a new approach to royalty distribution, exemplifies this shift. By tying artist payments directly to listener engagement—essentially rewarding creators whose work is actively sought after—it aims to address the longstanding concerns of underpayment within the streaming landscape. This model, in collaboration with Universal Music Group, challenges the traditional blanket approach to royalty distribution and may impact how different types of audio content are valued on the platform.

While Deezer's initiative is a positive step, questions arise about its potential impact on the variety of content offered to listeners. Concerns linger regarding whether certain kinds of content, perhaps those not as directly connected to specific creators, may become less visible or even marginalized. This shift has spurred broader discussions about how creators can sustain their work in a digital environment where the dominance of streaming platforms often overshadows their contributions. The response to Deezer's model hints at a growing recognition within the industry that fairer compensation models are vital. This could ultimately redefine how creators and streaming platforms interact, ensuring that those who create the content are fairly rewarded for their efforts. The future of these relationships depends heavily on how well these initiatives navigate the complexities of listener experience and content diversity while prioritizing the contributions of creators.

The current state of streaming platforms has led to ongoing discussions about fairer compensation for artists. Research indicates artists often see only a small fraction (10-15%) of the revenue generated, with a large portion going to labels and platforms. This disparity has fueled calls for a more equitable model, one that places artists at the center of the financial structure.

We've seen a growing trend of independent artists migrating towards platforms like Bandcamp, where revenue shares can be significantly higher (up to 85%). This demonstrates artists are actively seeking out avenues that provide a more direct connection between their creative work and the financial rewards it generates. The dissatisfaction with traditional streaming models is apparent, with surveys indicating less than a quarter of musicians feeling their streaming income is adequate. This dissatisfaction highlights the growing tension between the effort put into creating audio content and the financial recognition artists receive.

This quest for fair compensation isn't limited to music. The rise of audio book platforms with sound licensing models offers a compelling parallel. Here, voice actors can earn royalties based on the number of times their recordings are accessed, mirroring the artist-centric concepts we see gaining traction in music. This suggests that the broader audio industry is grappling with similar questions about fair distribution of revenues based on engagement.

Emerging technologies like voice cloning are also injecting new complexities into the conversation. These technologies raise questions about how we fairly compensate voice artists whose distinct vocal signatures are replicated. There's a unique challenge here in ensuring the creators of original voices are compensated for the use of their work, especially as voice cloning technology evolves and becomes more accessible.

The burgeoning podcasting industry provides another example. The industry has seen significant growth, and the associated revenue potential has naturally stimulated discussion around how to ensure content creators are properly compensated. It's yet another instance where the model of how we distribute revenue needs re-evaluation to keep pace with platform growth and audience engagement.

In the realm of artist promotion, there's a growing awareness of the impact that direct fan engagement has on revenue. Studies have shown that maintaining a strong social media presence and interaction with audiences can result in a noticeable increase in revenue, pushing artists to leverage diverse platforms to supplement their income.

Furthermore, there are creative, alternative models emerging. Crowdfunding and patronage platforms like Patreon and Kickstarter offer a different path. Artists can leverage these to foster direct support from their audience, providing a predictable and potentially more substantial income stream compared to the variable revenue generated from traditional streaming models.

The ongoing development of playlist algorithms adds further depth to the compensation discussion. As we learn more about how mood and theme influence listener choices, the concept of 'active listening' becomes more critical. It challenges streaming services to reconsider how they structure payouts to more closely reflect the level of listener engagement with specific tracks.

The growing popularity of subscription models shows another potential path. Some platforms are starting to allow listeners to directly support individual artists, much like a micro-sponsorship system. This demonstrates the desire to move toward a future where artist compensation is more closely tied to the choices and preferences of individual listeners. It’s an exciting but still developing trend that could reshape the landscape of artist support and payment structures.

The conversation about fair compensation for creators in the audio space is far from over. As platforms and technologies evolve, so too will the models for paying the artists who are the lifeblood of these platforms. The quest for fairness and alignment of compensation with listener interaction will likely be a driving force in the years to come.



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