Amazon Music May Follow Spotify's 1,000-Stream Minimum Amid New UMG Artist-Centric Deal
Amazon Music's expanded partnership with Universal Music Group (UMG) raises questions about potential implementation of a 1,000-stream minimum threshold for royalty payments, similar to Spotify's recent policy.
The newly announced "artist-centric" deal between Amazon Music and UMG includes several key components:
- Joint advancement of artist-centric principles
- Enhanced fraud protection measures
- Exclusive content with UMG artists
Amazon Music app showing artist interface
While specific details remain undisclosed, this development follows Spotify's controversial April 2024 implementation of a 1,000-stream minimum requirement for recording royalties. That change significantly impacted independent and unsigned artists while benefiting major labels with high-streaming catalogs.
Universal Music CEO Lucian Grainge praised Amazon Music's "deep commitment to the interests of our artists," suggesting potential alignment with industry-wide shifts toward artist-centric payment models.
Additional context worth noting:
- Amazon Music recently added monthly audiobook access to existing streaming plans
- Questions persist about potential reclassification as bundles under Phono IV determination
- Major labels have remained notably quiet about Spotify's similar bundling initiatives
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The impact of these changes on artists, songwriters, and publishers will likely become apparent as the agreement's implementation unfolds through 2025.