Why Spotify says its 1,000-stream rule is fairer than it looks
Spotify is defending its controversial 1,000-stream rule, here’s what the platform says and why artists are pushing back.
Spotify has pushed back against criticism of its 1,000-stream minimum royalty threshold following the release of a report that claims the policy disadvantages smaller and emerging artists. The streaming giant says the change is being misunderstood and argues it is designed to make the royalty system fairer and more efficient, rather than reduce payouts overall.
Introduced as part of Spotify’s revamped royalty model, the 1,000-stream threshold means tracks must reach at least that number of annual streams before they begin generating recorded-music royalties. Songs that fall below the threshold do not earn payouts, with the associated revenue redistributed across tracks that do meet the criteria.
Spotify says the policy targets “noise” in the system, including short clips, accidental uploads, and low-engagement content, which collectively account for millions of tracks but very little meaningful listening. According to Spotify, the vast majority of tracks under the threshold generate only a few cents per year, often costing more to process than they return.
The company argues that removing these micro-payouts allows more money to flow to artists whose music is actively being listened to, while also reducing opportunities for fraud and artificial streaming manipulation. Spotify has repeatedly stated that no royalties are being “kept” by the platform, and that all eligible revenue is still distributed to rights holders.
However, the policy has drawn criticism from artist advocates and industry observers, who say it risks further marginalising independent musicians already struggling to break through. Critics argue that every stream should count, particularly for niche genres and grassroots artists whose audiences may be small but deeply engaged. Some have also raised concerns that the change could discourage experimentation or make it harder for new artists to build momentum.
Spotify maintains that artists who do not reach the threshold are unlikely to see meaningful income from streaming alone, and that the platform should not be positioned as a primary revenue source at the earliest stages of an artist’s career. The company has instead encouraged musicians to view streaming as one part of a broader strategy that includes live shows, merch, and fan-direct support.
The backlash highlights growing frustration among creators about how streaming revenue is distributed. For now, the 1,000-stream rule stands as one of the most contentious changes in the evolving relationship between artists and streaming platforms.