Deezer wants to increase royalties with User-Centric Payment System

The UCPS is the streaming service's initiative to promote fair streaming for artists, it says. The initiative will be supported by the #MakeStreamingFair social media campaign. In preparation of the pilot, Deezer has also launched a website that explains the proposed structure for the UCPS.

The new structure seeks to compensate musicians according to the number of direct plays that they get from users. The UCPS will achieve this by paying artists for the listeners they have, as opposed to counting small percentages of a much larger pool.

In the current royalty payout system, which is used by Deezer and other music streaming services, royalties are paid based on the number of plays they receive.

UCPS website says that the music streaming service believes the new system will boost independent artists earnings by more than 30%. The UCPS will stop pooling subscription fees and instead pay the subscription fees paid only to the artists that the users specifically listen to.

Other benefits of the UCPS include eliminating streaming from fraudulent accounts or bots. With the new system, fraudulent accounts will not impact royalty payments so the money goes to real artists.

Deezer says the technology is already in place and 40 music labels have agreed to the new structure. However, Deezer will need backing from the three major holders of music rights − Sony Music Entertainment, Universal Music and Warner Music Group − to ensure that the UCPS is successful.

If the pilot works well in France, then the system will be rolled out to other countries.