Does Streaming 2.0 hurt indie artists?
IMPALA raises concerns over Amazon Music’s “artist-centric” payout model, warning it could disadvantage independent artists.
IMPALA takes aim at “Streaming 2.0”
Europe’s indie music body IMPALA is pushing back against Universal Music Group’s (UMG) goal for the future of streaming – “Streaming 2.0”. Following UMG’s licensing deal with Amazon Music at the end of 2024, IMPALA has voiced concerns about the impact of these changes on indie artists.
“Artist-centric” principles lie at the heart of the debate, which aim to combat stream fraud and redistribute payouts to artists above a particular streaming threshold. Critics argue that these changes unfairly benefit established artists, often signed to major labels, at the expense of independent musicians.
How Streaming 2.0 affects indies
While Amazon Music has not disclosed the full details of its new payout model, it appears to follow Spotify and Deezer which have introduced minimum streaming thresholds for earning royalties. For example, Spotify now requires tracks to reach 1,000 plays before generating recorded royalties.
These policies mean that more money is funnelled toward high-streaming releases of those typically signed to major labels, while smaller artists see their earnings reduced who are also struggling for visibility amongst a flood of AI-generated uploads.
IMPALA’s criticism
Helen Smith, Executive Chair of IMPALA, has criticised the “artist-centric” payout model as a move designed by dominant industry players for dominant industry players in order to consolidate control.
“Independents are being asked to sign terms with Amazon based on thresholds that have a disproportionate impact on their artists and revenue with some reporting that around 70% or more of their repertoire being demonetised and a large number of artists being impacted in some way.”
Helen Smith, IMPALA’s Executive Chair
IMPALA argues that the model is less about supporting artists and more about reinforcing the dominance of major labels like UMG. Instead, UMG is using “Streaming 2.0” to impose its views on the industry and reallocate revenues in favour of major labels.
Amazon’s defense
Amazon Music has defended its approach in response to the criticism, believing that all artists should be able to make a living from creating music to create a “diverse, vibrant music scene.” A company spokesperson reaffirmed its commitment to supporting all artists, arguing that the royalty model also benefits indies.
Amazon spokesperson
What’s next for indie artists?
As the industry moves further into “Streaming 2.0”, concerns are mounting over how these changes will impact the independent music scene. Such payout structures could discourage emerging artists and limit opportunities for new talent to earn and progress their career. Fears also exist about future adjustments to the payout threshold which would further disadvantage smaller players in the streaming economy.
While major labels and industry players continue to champion these new policies, indie artists and labels are left questioning whether “artist-centric” really means “major-label-centric”.