Spotify to boost artists’ algorithm placement if they accept reduced royalties
Spotify has announced details of a new feature which allows artists to boost their placement of specific tracks in the platform’s recommendation algorithms in exchange for different royalty rates on how those songs perform once promoted.
These boosted songs will appear in Spotify’s Radio and Autoplay features and, if the move proves successful, the streaming coming plan to expand the boost to other parts of the platform. The new feature has been christened ‘Discovery Mode’ and has been announced in a press release from Spotify’s newsroom. They state that the feature will initially be tested with artists and labels in the US with plans of a worldwide rollout if the feature is deemed successful.
A Spotify spokesperson has since told The Verge the ‘Discovery Mode’ royalty rates were yet to be revealed as the feature was still in the testing stage. However, they said, “the idea is for artist teams to be able to earn a positive ROI by using the tool”.
Adding: “In this new experiment, artists and labels can identify music that’s a priority for them, and our system will add that signal to the algorithm that determines personalized listening sessions,” the statement reads Spotify’s blog post announcing the feature.
“This allows our algorithms to account for what’s important to the artist – perhaps a song they’re particularly excited about, an album anniversary they’re celebrating, a viral cultural moment they’re experiencing, or other factors they care about.”
Spotify has also noted that the new feature will not “guarantee placement to labels or artists” who agree to take part in the scheme. “To ensure the tool is accessible to artists at any stage of their careers, it won’t require any upfront budget,” Spotify also said.
Ironically, last week saw the United Musicians and Allied Workers Union (UMAW) begin a new campaign titled ‘Justice at Spotify’ which laid out how they wanted the streaming platform to change going forward and stated that Spotify raises its average streaming royalty from $.0038 USD to a penny per stream for all artists.