The Spotify policy, which requires a track to reach 1000 annual plays before generating royalties, has drawn criticism for potentially excluding smaller or niche artists from fair compensation. ANMIP-BG surveyed 71 labels and artists in the region, with 85% reporting a revenue reduction due to the threshold, and 65% describing the impact as “significant.”
Serbia-based Take It or Leave It Records commented: “The threshold policy is particularly punishing for artists across different genres who may not hit 1000 streams quickly but still contribute valuable music. Spotify should introduce a more inclusive approach, like YouTube’s model.”
Other respondents reported milder effects. MUZE Music co-founder Vasil Anastasov said: “We see a decline in revenue, but it’s manageable. However, if this threshold were raised further, we would face severe challenges.”
The study also highlighted broader concerns regarding the rise of AI-generated music. Some respondents noted that machine-created tracks can reach the minimum, potentially diverting royalties, playlist placements, and listeners from human creators.
Proposed solutions among participants included lowering or eliminating the threshold (40%), adjusting Spotify’s algorithm to better support lesser-known artists (35%), or appointing local curators to help regional acts gain visibility and playlist access (25%).
Spotify responded to the findings, emphasising that the study represents a limited sample. A company spokesperson said: “For many licensors with meaningful listening, including ones in Southeast Europe who are not represented in this limited survey, overall Spotify payouts increased under this policy, and they are finding success. In fact, the survey conducted is in sharp contrast with IFPI Europe’s latest figures. Central and South Eastern Europe were the fastest-growing markets, with 26.9% revenue growth in Romania in 2024 and 29.7% growth from streaming alone.”
The spokesperson also noted that 99.5% of all listening occurs on tracks exceeding the 1000-stream threshold, which now earn more under the current model. “The tracks affected by this policy previously generated only around $0.02 per month, and those payments rarely reached artists because they fell below distributor pay-out thresholds. The royalty pool Spotify pays out has not changed; the payments that would have otherwise been lost to artists’ distributors are now directed to tracks with more than 1000 annual streams, where artists should reliably receive them. We remain committed to supporting artists and labels across all markets,” the statement added.
The debate underscores ongoing tensions over streaming royalty distribution, particularly for independent creators in emerging markets. As streaming continues to dominate music consumption globally, policies like Spotify’s threshold are likely to remain a focal point for discussions on fairness and artist compensation.