Amazon Music’s recent partnership with Universal Music Group (UMG) is raising questions about whether the platform will implement a controversial 1,000-stream minimum before tracks qualify for recording royalties. This speculation follows Spotify’s adoption of the policy earlier this year and its sweeping impact on the music industry.
Amazon and UMG’s “Artist-Centric” Partnership
Announced on Monday, the enhanced Amazon-UMG deal centers on the “advancement of artist-centric principles.” While specifics remain vague, the term “artist-centric” has become synonymous with significant payout changes, like those recently introduced by Spotify and Deezer. These changes disproportionately benefit major labels and their high-streaming catalogs while sidelining independent and unsigned artists.
Spotify’s 1,000-stream minimum, implemented in April 2024, prevents tracks with fewer than 1,000 annual plays from earning recording royalties. According to industry analysis, this policy has led to a significant reduction in on-platform recordings generating royalties, consolidating earnings for major labels.
Could Amazon Follow Suit?
The possibility that Amazon Music might adopt a similar policy is underscored by statements from UMG CEO Lucian Grainge. He praised Amazon’s “deep commitment to the interests” of UMG artists, expressing optimism about their shared goals. However, Amazon has yet to disclose details about the partnership or clarify whether a play-threshold for royalties is part of the agreement.
Digital Music News sought confirmation from Amazon Music but did not receive a response before publication.
Broader Implications and Industry Trends
In addition to artist-centric principles, the Amazon-UMG deal includes measures like enhanced fraud protection and exclusive content from UMG artists. These initiatives come at a time when streaming platforms face subscriber losses and slower revenue growth. For Amazon, the integration of audiobooks into its music subscription plans further complicates its royalty structure. Industry insiders speculate that reclassifying these plans as bundles could yield substantial royalty savings for Amazon at the expense of songwriters and publishers. Spotify’s similar bundling move earlier this year sparked legal challenges and criticism from music rights organizations.
As the streaming landscape evolves, the ripple effects of such policies are likely to shape the future earnings and opportunities for artists, songwriters, and publishers. Whether Amazon Music adopts a 1,000-stream minimum remains to be seen, but the decision could have far-reaching consequences across the music industry.