New Penalties for Artificial Streaming and How to Stay Safe.

In an unprecedented move to ensure the integrity of content on their platform, Spotify has recently introduced a new policy that is sending ripples through the music industry.The measures being implemented vary by individual DSP, but primarily are aimed at disincentivizing artificial streaming. The intention is to meaningfully deter bad actors that attempt to divert money from honest, hard-working artists like you.This policy imposes a fine of 10 euros on music labels for every track identified with predominantly fraudulent or artificially inflated stream counts.Major distribution platforms like Highvibes, TuneCore, and CD Baby, renowned for their high-volume, low-margin business models, are particularly alarmed by Spotify’s new policy. These platforms have started sending mass emails to their artists, warning them about the potential consequences of fraudulent streams and urging adherence to Spotify’s guidelines.
ARTIFICIAL STREAMING: THE NEW MUSIC INDUSTRY PLAGUE
Spotify is implementing a policy whereby distributors like Highvibes will be charged an enforcement penalty per track when flagrant artificial streaming is detected on content supplied by Highvibes Distribution.
Spotify has now starting charging penalties on record labels and distributors for tracks that accumulate a significant volume of illegitimate streams. These tough measures are to combat the use of fake streaming. Artists discovered to be artificially boosting their streams hold the risk having their royalties withheld, their music removed from the platform and facing permanent bans on their accounts. This could have a significant impact on your label.
Spotify will apply a fee of €10 / $10.82 for tracks where over 90% of the streams are deemed fraudulent.
Whilst Spotify is the only DSP now issuing penalty charges for artificial streaming, other key DSP’s are also taking a much more aggressive approach to streaming fraud. Any songs or artists that are identified by a DSP as having high levels of artificial streams may find that the following happens.
- Your label could be given a ‘strike’.
- Labels with multiple strikes from a DSP can have their whole catalogue pulled without any notification.
- Your label could be permanently banned by the DSP.
- Your label will be flagged to
- Your song/s are removed from the platform without any notification.
- Cygnus Music as problematic and we will have to audit your catalogue.
- Royalties for your label could be held and any previously paid royalties.
Is Highvibes Distribution going to penalize me or terminate my account?
Highvibes will continue to review and update our policies to be a great collaborative and preferred partner to the DSPs we work with which in turn helps and elevates our legitimate clients. We also will continue to educate and inform to be a great service provider and source of information and guidance to our valued and trusted clients.
Highvibes Distribution employs a careful approach to consideration of reports of improper activity from our DSP partners. We have implemented a strike system that applies in some instances where we determine that additional information and education will be helpful to our clients to ensure they have the tools they need to be compliant with our DSP partners, and our own, high standards.
How can we avoid attracting streaming bots to our music? Avoid using services that promise rapid increases in plays or followers. Focus on organic growth strategies, such as engaging with your audience through social media, live performances, and collaborative project
How will I know if I’ve incurred a Spotify fee? You will be notified via email and the fee will be assigned to your account.