On February 9th, Benn Jordan, the electronic artist known as the Flashbulb, encountered an unexpected obstacle during a recording session. When attempting to reference one of his songs on Spotify or Tidal, he discovered that his music was inaccessible. Initially attributing it to a glitch on his phone, his concern grew as messages from fans flooded in, questioning why his music had vanished from streaming platforms. Understandably, panic ensued.
Jordan, who has accrued over $500,000 in streaming royalties and heavily relies on them for his income, found himself unwittingly embroiled in streaming services’ intensified efforts to combat fraud. His distributor, TuneCore, had received notification from Spotify indicating suspicious artificial streaming activity on his music. Without prior notice, TuneCore promptly removed all 23 of his albums from streaming platforms.
Streaming fraud poses a significant challenge to the music industry, ranking among its most pressing issues. Operating on a pro-rata payment structure, where artists receive payment based on their share of total streams, streaming platforms have inadvertently facilitated the diversion of millions of dollars from rightful artists, songwriters, labels, and publishers. Moreover, the accessibility provided by DIY distributors such as TuneCore and Distrokid, enabling virtually anyone to distribute an unlimited number of audio files to streaming platforms for a minimal fee of around $20 per year, further exacerbates the problem. This low barrier to entry creates a situation where policing fraudulent activity becomes exceedingly difficult.
Andreea Gleason, the CEO of TuneCore, along with Erica Clayton, the VP of Artist Support, disclosed the mounting pressure they faced from streaming services, prompting them to adopt these admittedly assertive measures. Engaging as a member of the recently established Music Fights Fraud Alliance, TuneCore endorses Spotify’s imposition of fines. Nonetheless, Gleason indicated that TuneCore plans to introduce a warning system in its operations moving forward.
In a statement provided to Variety, Gleason emphasizes the necessity for collective action in combating fraudulent practices that undermine the royalty pool intended for genuine artists and their fan base. She states, “In order to effectively prevent bad actors from diluting the royalty pool for real artists with real fans, all companies need to be a part of the solution.” Gleason further explains that TuneCore diligently removes content flagged by Digital Service Providers (DSPs) due to abnormally high rates of fraudulent streaming activity. Despite their best efforts, legitimate artists occasionally fall victim to deceitful streaming fraud or exploitation by fraudsters posing as digital marketing or promotional entities. Gleason underscores TuneCore’s active refinement of policies and practices aimed at cultivating a fair streaming ecosystem, enabling all artists to flourish.
In contrast, DistroKid has instituted a strike system to address reported instances of significant artificial streaming activity on Spotify. Under this system, artists receive notifications informing them of Spotify’s detection of such activity on their music. If the artist is suspected of being responsible for the fraudulent activity, they are advised to halt promotional efforts immediately. Alternatively, if the artist is unaware of the fraudulent activity, they are instructed to remove the track from Spotify to avoid fines or potential bans. Subsequently, the artist must undergo a questionnaire process to regain access to their account and funds, affirming their understanding of the situation and detailing the circumstances surrounding the violations.
Jonah Baker, a singer-songwriter who initially gained traction through acoustic covers on YouTube, currently garners approximately $200,000 in annual streaming revenue. With over 150 million streams across various platforms, his presence in the digital music realm is substantial. However, Baker was taken aback when he received a strike notice from DistroKid, signaling significant artificial streams on his music. Perplexed, Baker insists that he never engaged any services to artificially inflate his stream numbers. Following guidance from DistroKid’s customer support, he opted to remove the flagged track to avert the possibility of facing a ban. His decision stemmed from the hope that such incidents wouldn’t occur with any of his other music.
DistroKid’s notifications imply that the flagged activity is a result of Spotify’s policy, prompting the artist to confirm through a quiz and checkboxes that they will refrain from utilizing any promotional programs targeting Spotify specifically. However, a representative from Spotify refuted these claims, stating that the platform does not implement any strike or warning system and does not mandate artists to remove songs in such circumstances.
Relevant articles:
– Spotify Removing Artists’ Music for Streaming Fraud They Didn’t Commit
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