UMG and Deezer partner on artist-centric streaming model

Deezer will launch this model in Q4 2023, starting in France, with plans to expand to other markets, with Universal Music France CEO Olivier Nusse noting that the initiative will “much more effectively value fan engagement and active streaming of music created by artists.”

The system leverages expertise in deep data analysis to create a framework that more accurately represents the real worth of the connection between artists and their fans.

The development is driven by the companies’ recognition that the current music streaming model needs to be re-imagined, in light of the sheer volume of uploads, including irrelevant non-artist content, which has prompted a re-evaluation of how platforms, labels and artists can cultivate a vibrant music ecosystem.

Key enhancements integrated into the new artist-centric model include, firstly, prioritising professional artists – or those with a minimum of 1 000 streams per month from at least 500 unique listeners. This focus on quality and engagement is designed to ensure fairer rewards for artists and their contributions to the platform.

Additionally, the model places a strong emphasis on rewarding engaging content. Songs that fans actively engage with will receive a significant boost, reducing the economic influence of algorithmic programming on the platform.

Another aspect of the framework is the removal of non-artist noise audio. Deezer plans to replace such content with its own, effectively excluding it from the royalty pool. This move aims to highlight and support genuine artist-created music.

Finally, the model includes stringent measures to tackle fraud. It incorporates an updated and stricter proprietary fraud detection system, aimed at discouraging bad actors and safeguarding streaming royalties for artists. This commitment to maintaining integrity in earnings distribution is crucial for the platform’s sustainability and artist satisfaction.

Deezer’s catalogue grew from 90 to more than 200 million pieces of content in the past two years alone. As part of the new framework, Deezer says it intends to apply a stricter provider policy to ensure quality and a better user experience. This includes steps to limit non-artist noise content.

“This is 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,” Deezer CEO Jeronimo Folgueira said. “At Deezer we always put music first, providing a high-quality experience for fans and championing fairness in the industry. We are now embracing a necessary change, to better reflect the value of each piece of content and eliminate all wrong incentives, to protect and support artists. There is no other industry where all content is valued the same, and it should be obvious to everyone that the sound of rain or a washing machine is not as valuable as a song from your favourite artist streamed in HiFi.”

UMG’s EVP and chief digital officer Michael Nash said: “The goal of the artist-centric model is to mitigate dynamics that risk drowning music in a sea of noise and to ensure we are better supporting and rewarding artists at all stages of their careers whether they have 1 000 fans or 100 thousand or 100 million. With this multifaceted approach, music by artists that attracts and engages fans will receive weighting that better recognises its value, and the fraud and gaming, which serves only to deprive artists their due compensation, will be aggressively addressed.

“Embracing the commonly shared objectives we highlighted at the outset of this chapter in our partnership, together we’ll maintain a flexible and adaptive approach. As the ever-evolving music landscape continues its rapid transformation, UMG and Deezer will rigorously address the impact of these changes as we incorporate new insights from data analysis, and finetune the model, as appropriate.”