Deezer’s new royalty system nabs 2nd major label
Warner Music Group join Universal on Deezer’s new artist-centric royalty system, aiming to pay artists more.
Deezer have added a second of the 3 major labels to their new royalty system. Warner Music Group (WMG) are now confirmed to be a part of Deezer’s artist-centric model in France.
Deezer announced their new streaming royalty system in September. It introduces four changes to how they approach royalty payouts for artists. Primarily, it aims to prioritise more payments to artists who are engaging with listeners and to take away money from non-musical “noise tracks” and fraud.
Deezer then announced in October that the streaming model was operating with UMG (Universal Music Group) artists in France. Now WMG are confirmed to have joined Deezer under the new model. In fact, Digital Music News suggest that WMG have even been earning under the model since the start of October, the same as UMG.
President of Warner Music France, Alain Veille said: “As we’ve consistently said, we’re committed to working with the streaming platforms to evolve business models to better reflect the value and fan engagement driven by artists, songwriters, and their art.
“So we are delighted to partner with Deezer on this artist-centric model which rewards engaging music and demonetizes non-artist noise. Our new deal will benefit creative talent at all stages of their careers and support our ability to invest in the next generation.”
With two of the three major labels under their belt, Deezer are also looking at broader partnerships to bring under their new royalty model. At the end of October, Deezer announced a partnership with publishing rights body Sacem to explore how they could pay rightsholders better.
As Deezer push a potentially transformative streaming model forward, it ushers in a new generation for the music streaming platform. Last week, Deezer announced their new look with a fresh logo and a redefined set of values. Deezer are pushing a commitment to music with their new brand, opposing Spotify’s moves to become a broader audio platform with audiobooks and podcasts.
The music streaming industry has become incredibly competitive in recent years, with numerous major players. Deezer have long lived on the edges, slowly gaining a foothold in a race dominated by powerhouses like Spotify and Apple Music. Their recent moves look to shake up the industry and gain them recognition.
Deezer added 500,000 subscribers in the last year, though also lost traction in global markets. With fresh branding and eyes-on their new streaming model, the next year may signal a transformative blossoming for the music streamer.