Deezer’s new model doesn’t address some of the fundamental issues with the economics of streaming, says former Sony Music exec Thomas Hesse.
with Universal Music Group, under which the streaming service will distribute royalties under what amounts to a weighted system, rather than simply pro rata. The weighted system will attribute a doubled value to streams of “professional” artists, defined as those with 1,000 or more streams per month by 500 or more users, and would double that value again for tracks that fans searched for as opposed to those served up by the platform.
If 99% of streams were weighted three-fold under this artist centric policy – all would get doubled, but presumably many tracks would still be served up algorithmically – then, mathematically, that would increase their share to 99.66% ). So, the bottom, “noise”, uploaders would see their share of streams and revenues diminished by 0.66% from 1% to 0.34%. Applying this calculated reduction to IFPI’s published wholesale audio streaming market number of $12.
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