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The Hidden Cost of Artificial Streaming: Understanding Fines and Their Impact on Artists’ Earnings

Will Lisil 13/08/2024
Music Marketing Mix - Sharing knowledge about new platforms and functionalities for indie artists

Music Marketing Mix - Sharing knowledge about new platforms and functionalities for indie artists

How Manipulative Streaming Practices Are Costing Musicians Their Hard-Earned Money

This article is part of the “Music Marketing Mix” project by PopHits.Co, a comprehensive initiative developed by professionals from the music industry to share valuable knowledge about new platforms and functionalities specifically for indie artists. The resources and insights provided in this series are offered free of charge to those who sign up for our exclusive newsletter, which also offers free services from partnering companies dedicated to optimizing and democratizing music services.

In a bid to maintain the integrity of its platform and ensure that artists are paid fairly for their genuine work, Spotify has introduced fines for streams that are artificially generated. If you’re an artist, understanding these new regulations is essential to protect both your reputation and your income. This article explains where these fines are coming from, how they will impact your earnings, and why focusing on authentic fan engagement is crucial for your long-term success.

Music Marketing Mix - Sharing knowledge about new platforms and functionalities for indie artists
Music Marketing Mix – Sharing knowledge about new platforms and functionalities for indie artists

Understanding Artificial Streaming and its Consequences

Artificial streaming refers to any activity that manipulates streaming numbers without reflecting genuine user listening intent. This includes the use of bots, scripts, or third-party services that promise guaranteed streams in return for payment.

Spotify’s terms and conditions explicitly state that:

  • Artificial streams violate their guidelines.
  • Using third-party services that guarantee streams could lead to the removal of your music from the platform.
  • Consequences include withholding royalties, correcting public streaming numbers, and ensuring the song’s or artist’s popularity reflects true listening patterns.

“3rd-party promotional services that advertise streams in return for payment violate our terms & conditions, and using them could result in your music being removed from Spotify.”

The Introduction of Fines

Starting April 1, 2024, Spotify is introducing deterrent fees to combat artificial streaming. These charges will apply to labels and distributors per track when flagrant artificial streaming is detected.

[mailerlite_form form_id=1]

Impact on Earnings

When Spotify detects artificial streams:

  • Royalties from those streams may be withheld.
  • Public streaming numbers may be corrected, possibly lowering apparent popularity.
  • Persistent or severe cases may lead to the removal of the manipulated content and potential account suspension.

It’s important to note that even if you see spikes in your Spotify for Artists data, the associated royalties may be withheld if those spikes are deemed to be from artificial streams.

“When we identify confirmed cases of artificial streaming, we take actions that may include the withholding of associated royalties, the correction of public streaming numbers, and measures to ensure the artist’s popularity is accurately reflected.”

Music Marketing Mix - Sharing knowledge about new platforms and functionalities for indie artists
Music Marketing Mix – Sharing knowledge about new platforms and functionalities for indie artists

The Importance of Authentic Engagement

Focus on True Fans Rather Than Vanities Metrics

In the quest for popularity, some artists may fall into the trap of focusing on sheer numbers – be it plays, followers, likes, or views. However, these metrics alone are not indicative of genuine success. True artistic success is reflected in:

  • Engaged Fans: Those who play your music because they resonate with it.
  • Merch Sales: Fans who invest in your merchandise, showing tangible support.
  • Concert Tickets: Real followers who are willing to spend money and time to watch you perform live.

Engaging with real fans generates more than just numerical success; it cultivates a loyal audience base that supports your journey as an artist.

[mailerlite_form form_id=1]

How to Safeguard Your Career

Artists need to be vigilant about the services they choose to promote their music. Here are some steps to ensure you avoid pitfalls:

1. Use Legitimate Services:

Only employ legitimate promotional services that comply with Spotify’s terms and conditions. Steer clear of any service that promises guaranteed streams. MusoSoup is a vital platform for artists aiming to connect with genuine fans who will stay dedicated throughout their career journey. By leveraging MusoSoup’s On-Demand PR Services, artists can ensure they are reaching real listeners who are truly interested in their music, fostering authentic engagement and long-term support, all while adhering to industry standards and avoiding the pitfalls of artificial streaming.

In today’s digital landscape, it’s crucial for artists to be mentioned across the internet, as failing to do so can make it seem like they don’t exist in the metaverse. Search engines, now powered by sophisticated Artificial Intelligence, rely heavily on content to identify and rank individuals. This means that if no one is writing about an artist, search engines won’t find them, making it challenging for potential fans to discover their music.

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Utilizing MusoSoup writers to publish articles mentioning the artist is vital because these articles expose the artist’s work, showcase the type of music they create, and provide links to their portfolio, website, and social media profiles. This visibility is essential for establishing an online presence.

MusoSoup is currently the most important platform for independent artists due to its affordability, democratic nature, and strategic advantage in fostering organic reach and engagement. By ensuring they are featured in articles, artists can effectively enhance their online discoverability and build a loyal fanbase.

2. Monitor Your Streams:

Keep an eye on your data in Spotify for Artists. If you notice unnatural spikes in your streaming numbers, investigate their origins.

PopHits.Co Music Distribution services offer a powerful panel that provides all the essential stats about your music, including the automatic detection of artificial streaming services. This feature enables you to not only understand where your plays are coming from but also to identify which platforms are generating more earnings. By leveraging this data, you can strategically develop and enhance your independent music career.

PopHits.Co Music Distribution Services - How To Monitor My Music Streams
PopHits.Co Music Distribution Services – How To Monitor My Music Streams

In addition to these impressive functionalities, PopHits.Co stands out as the most affordable music distribution service, requiring the lowest initial investment. Each track is uploaded to more than 150 music streaming platforms and all social networks, starting at just $0.14 per track, per year. This makes it incredibly accessible for grassroots artists to kickstart their careers and learn the ropes while maintaining their independence.

The platform also offers access to Spotify Discovery Mode, an exclusive tool by Spotify designed for artists, producers, and music marketers. This powerful feature helps them discover new listeners precisely when it matters most, in an automated and legit way.

PopHits.Co Music Distribution Services - How To Monitor My Music Streams
PopHits.Co Music Distribution Services – How To Monitor My Music Streams

You can apply for a free account on PopHits.Co, and transfer your music from other distributors free of charge. Additionally, you can use your account with other services offered within the platform, such as distributing music videos to VEVO and more. Due to the socio-constructive nature of PopHits.Co’s projects, artists can also participate as partners and earn money by inviting other artists and producers to join through a referral system that offers substantial benefits.

PopHits.Co Music Distribution Services - How To Monitor My Music Streams
PopHits.Co Music Distribution Services – How To Monitor My Music Streams

The benefits are highly accessible, including cooperative funding rounds with shared pools of $1,000, while costing only $2 per entry. This makes participation extremely affordable for everyone, because PopHits.Co is not just a music distribution service, but a socio-constructive action based on building mechanisms and comprehensive platforms for career growth and community building.

3. Engage With Your Fans:

Foster genuine connections with your audience. Use social media, live shows, and direct fan interactions to build a genuine following.

Spotify for Artists offers a wealth of educational resources that independent artists should explore. The platform features video classes with industry experts such as Rick Ross and Troy Carter, covering essential topics like promoting your music, understanding playlists, and navigating sync licensing.

Spotify For Artists - How To Promote Your Music
Spotify For Artists – How To Promote Your Music

These video classes, part of a series called “The Game Plan,” provide valuable insights to help artists maximize their reach and engagement. Beyond the platform’s own resources, there are numerous tutorials available on YouTube, offering additional guidance and tips. Together, these resources equip independent artists with the knowledge they need to thrive in the music industry.

4. Communicate With Distributors:

If you suspect unfair penalization, it’s crucial to provide your distributor or label with clear evidence of authentic promotional activities. They can then liaise with Spotify to resolve the issue. For instance, PopHits.Co is equipped with advanced systems to identify artificial streaming services, ensuring legitimacy in your promotional efforts.

Additionally, PopHits.Co offers an open channel of communication through their Customer Support menu option. This excellent client connection is well-verified on their TrustPilot page, adding an extra layer of reliability to their services.

Real-World Example

Let’s say you’ve unknowingly used a third-party service that promises to boost your stream numbers. Spotify’s advanced detection systems flag your account for artificial streaming. As a result:

1. Immediate Financial Repercussions:

The royalties you would have earned from those inflated streams are withheld.

2. Long-Term Visibility Impact:

Your corrected public streaming number lowers your chart positions, reducing your visibility.

3. Potential Account Risks:

Repeated offenses could lead to content removal or account suspension.

In essence, you’ll not only lose potential earnings but also market credibility and genuine fan trust, leaving you in a worse position than if you had grown your audience organically, step-by-step, following tips offered by the projects Music Marketing Mix.

Conclusion

The implementation of fines for artificial streaming is a significant step toward ensuring fairness in the music industry. For artists, the focus should always be on creating genuine connections with real fans. Not only does this secure your long-term career, but it also respects the spirit of art, where authenticity reigns supreme.

Spend your time engaging with those who genuinely love your music, invest in authentic promotional strategies, and remember that in the world of art, true fans are your most valuable asset. Avoid the allure of dishonest tactics—they might seem like a shortcut to success, but in reality, they are a sure path to downfall.

For more information, visit the comprehensive guide on Spotify’s site Third-Party Services That Guarantee Streams.


About Post Author

Will Lisil

Director & Digital Creator at MW3.biz Ltd, United Kingdom.

See author's posts

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