UMG and Deezer Outline New Streaming Model to Cut Through Noise

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UMG and Deezer Outline New Streaming Model to Cut Through Noise
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The new system, due to roll out in France during the fourth quarter, will reward “professional artists” and songs that drive fan engagement.

Deezer plans to implement a new streaming model with Universal Music Group later this year — a step that Deezer CEOcalled “the most ambitious change to the economic model since the creation of music streaming and a change that will support the creation of high-quality content in the years to come.”

In an announcement on Wednesday , Deezer said it would roll out this “artist-centric” system in the French market starting in the fourth quarter of 2023. The new model aims to reward artists and songs that are driving listener engagement while also de-prioritizing white noise and other “functional” audio. “The sound of rain or a washing machine is not as valuable as a song from your favorite artist streamed in HiFi,” Folgueira declared.

As part of the new model, plays racked up by “professional artists” — which Deezer defines as acts with more than 1,000 streams per month spread across 500 unique listeners — with a “double boost.” Similarly, songs that are driving listener engagement — the metrics for measuring this were also undefined — will receive the same bump.

In addition, Deezer plans to replace “non-artist noise content” — the sounds of whales or washing machines — with its own functional music, while also excluding this audio from the royalty pool so that payouts to raindrop recordings don’t come at the expense of payouts to singer-songwriters. “We are now embracing a necessary change, to better reflect the value of each piece of content and eliminate all wrong incentives,” Folgueira said in a statement.

“With this multi-faceted approach, music by artists that attracts and engages fans will receive weighting that better recognizes its value, and the fraud and gaming, which serves only to deprive artists their due compensation, will be aggressively addressed,” added, UMG’s evp and chief digital officer.

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