Spotify to Prioritise Tracks for Artists Who Agree to Lower Royalty Rates
In a move that's likely to prove unpopular within the music community, Spotify have announced that, in exchange for accepting a lower royalty rate, artists can have their material promoted within the app's algorithms.
With Spotify already under fire for how they pay artists and labels, it is likely that this move won't do them any favours. It's pretty much inevitable that this system will lead to major artists and labels dominating recommended playlists, due to the fact that they will be able to take the pay cut. Smaller artists who already struggle to make money will find it a lot harder to accept even lower rates.
On top of this, Spotify have also stated that whilst this 'promotional rate' of royalties will encourage tracks to be added onto recommended playlists, there is no guarantee that this will get you more plays. Spotify currently pays out only $0,0032 per stream.