Deezer User-Centric Payment system to launch in 2020
Deezer User-Centric Payment system is focused on paying artists fairly.
Deezer’s User-Centric Payment system’s beta stage will start in France next year (2020) and depending on the results will either be implemented or discarded.
Currently, Deezer pays artists royalty payouts as a percentage based on the listens they get whereas under the new system subscription fees will stop being pooled and instead individual subscriptions will go DIRECTLY to the artists you listen to.
In the current payment system- adopted by Spotify and others- artists receiving 100,000 plays from a listener wouldn’t experience the economic benefit from those direct plays.
Instead, the money is pooled across millions of artists and their plays, with each artists getting a slice of the pie based on their overall aggregated spins on the platform. This means that the Taylor Swift’s and the Ed Sheeran’s will get a bigger slice of the pie, even from non-fans.
Deezer reportedly has the tech to back this new payment system with 40 record labels already having signed on. They just have to get agreement from the Big Three record labels and it’s on.
Deezer says this new payment system could help indie artists see a 30% increase in payment, which means the top streaming artists will less than 10% of a decrease in payment from their bottom line- I promise you, they will survive.
Another major benefit from the new system is the elimination of streaming fraud from bots, which affects the pooled royalty payments.
It’s a no-brainer really. Why should artists get paid without plays? It just results in top streaming artists getting paid more than they deserve.
The #MakeStreamingFair campaign on social media aims to shed light onto this new payment system, in hoped of evening the playing field.
Check out how the Deezer User-Centric Payment system will balance things out via this nifty graph.