Deezer and Universal Music Group's Strategy to Tackle Streaming Noise

"The streaming landscape is being redefined by a new agreement between Deezer and Universal Music Group, aiming to tackle the issue of streaming noise."

Functional music, characterized by white noise, ambient sounds, and other non-musical content, is a significant part of the streaming world. Surprisingly, this type of content is often assigned the same monetary value as actual songs, leading to a skewed monetization system. Deezer, a French streaming service, and Universal Music Group, the world's largest record label, are attempting to change this scenario.

The New Model

Under a new model, Deezer will demonetize nonartist noise audio like the hum of a washing machine or the drone of bot-generated muzak. Instead, the streaming service will focus on monetizing music created by professional artists, defined as those with a minimum of 1,000 monthly streams by at least 500 unique listeners. These professional artists' streams will count for double, and hunting for specific artists will double this again. This move aims to discourage monetizing non-music content and reward music created by artists with a consistent and engaged fan base.

Implications of the New Model

This new model represents a significant shift in the music streaming industry, which has remained unchanged since Spotify's launch in 2008. Now, professional artists stand to benefit, with Deezer estimating payout increases of around 10 percent. According to David Turner, founder of the music business newsletter Penny Fractions and a strategy manager at SoundCloud, most artists that people know or care about will benefit from this model. Conversely, hobbyists may lose out on small payouts, while artists with a devoted following might now be able to make a living from their music.

Challenges and Concerns

However, the new model has its problems. The model pits hobbyists against professional artists, suggesting that hobbyists are the reason why professional artists aren't earning more. Furthermore, the line between bad actors, functional music, and more avant-garde forms of noise can be challenging to draw. This raises concerns about significant labels and streaming executives deciding what counts as 'nonartist noise content' and what qualifies as 'art.' Another concern is Deezer's plan to upload functional music, which could compete with professional artists.

Looking Forward

Despite these challenges, the new model offers a promising approach to tackling the issue of streaming noise. By separating professional artists from the musical clutter of hobbyists and system-gaming bots, Deezer hopes to future-proof its platform. Using AI-generated content, the company plans to develop more tools to deal with future abuse, including fraud and copyright infringement.

The new model Deezer and Universal Music Group proposed is a significant step towards redefining the streaming landscape. If successful, it could pave the way for a more equitable distribution of streaming revenues and a better experience for artists and listeners.