A Song And Dance

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What's going on?

Universal Music is rewriting the playbook of the streaming game in a new deal with Deezer.

What does this mean?

The way streaming money is paid out has been a source of frustration among music companies and musicians: current streaming models treat every play equally, whether its Taylor Swift or the chirping of crickets. And that that system dilutes the earnings of major artists, while inadvertently boosting low-quality or even deceptive tracks. But heres the twist: Universal is introducing a revamped model in collaboration with French streaming service Deezer. This doubles the weight that professional artists those who clock up at least 1,000 listens a month receive when calculating royalty payments. And if a listener actively searches for a specific artist or song, then that streams weight is doubled again. This isnt a distant dream, either: Deezers set to adopt this approach in France come October, with a broader rollout planned for January.

Why should I care?

For you personally: Cleaner playlists, happier artists.
Say goodbye to elevator music and hello to better tunes. Universals new rules mean your playlist is about to get a quality upgrade while funneling more of the $900 million currently spent on noise into the pockets of real artists.

The bigger picture: Never the same stream twice.
Universal Music is a veritable titan. With a vast music portfolio and stars like Drake and Taylor Swift on its roster, it’s the royalty in music royalties. And as the music streaming sector gears up for projected revenues of $38 billion this year, Universals strategic move with Deezer could be just the beginning: after all, the firms already in talks with industry giants like Spotify and Tidal. If all goes according to Universals vision, then, it could set a new standard for how the game is played and won.

Originally posted as part of the Finimize daily email.

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