Deezer’s Artist-Centric Debate Amidst Streaming Economics

Deezer CEO Alexis Lanternier has recently voiced concerns over Spotify’s controversial demonetisation policy, which restricts royalty payments for tracks gathering fewer than 1,000 streams annually. This approach, part of Spotify’s artist-centric payout model, is seen by Lanternier as overly harsh for smaller artists striving to gain traction. Deezer, having pioneered the UMG-approved artist-centric payouts earlier in 2023, opts instead to boost payments for high-engagement tracks, avoiding Spotify’s stringent measures. The motivation behind such models—combatting streaming fraud—is acknowledged by Lanternier, who questions the effectiveness of Spotify’s threshold, suggesting that fraudsters often surpass the 1,000-stream mark.

Furthermore, Lanternier aligns with Spotify and Apple Music in resisting rapid subscription price hikes akin to those in the video-streaming sector. He stresses that unlike video platforms with exclusive content justifying higher costs, music services risk weakening their royalty pools with similar strategies. This nuanced approach ensures that Deezer remains focused on fair artist compensation while ensuring broad access.

In parallel, the streaming landscape witnesses other shifts, including discussions around ad-supported tiers and their impact. As the industry grapples with these dynamics, Deezer’s stance reflects a balanced commitment to artist support and sustainable economic practices. Emphasizing local music strength, Deezer reports that 41% of its streams in France are of French artists, with Brazil showcasing an even stronger domestic presence. This dedication to regional music aligns with the platform’s mission to empower underrepresented voices globally.

As the independent music ecosystem evolves, platforms like SONGLENS aim to amplify these developments, spotlighting shifts and strategies that prioritize emerging talent and equitable growth in the music industry.