With the likes of Snoop Dogg jumping ship and leaving Spotify, it’s clear that artists are becoming increasingly frustrated with the streaming giant’s royalties system. And, according to YouTuber Top Music Attorney, Spotify’s upcoming Music Pro tier might mean the “dilution” of revenue for artists.
While Spotify’s new ‘Music Pro’ tier is set to finally introduce lossless audio to the platform, Top Music Attorney’s Miss Krystle says the tier could negatively impact independent artists.
She draws attention to the tier’s access to exclusive tickets and other fan experiences. “Music platforms and distributors are seeing that the best way to make money is not just from streams,” she says. “It’s selling merch, selling tickets, selling experiences.”
But in Miss Krystle’s opinion, the increasing integration of merch and ticket sales into the Spotify ecosystem will lead to the “dilution of royalties” for artists.
“Spotify keeps bundling things together…” she explains. “Spotify is [diluting] the pool by adding in audiobooks, listening experiences… [it’s not just] music.”
She recalls Universal Music Group’s pitch to investors last year, which preached the importance of selling “directly to fans”. Music Business Worldwide attended the company’s pitch at 2024’s Capital Markets Day, where UMG’s Executive Vice President and Chief Digital Officer Michael Nash vowed that “more and more of [UMG’s] business will continue to be direct to consumer.”
“We are developing more and more products and experiences for our most passionate and engaged fans,” Nash said, noting examples such as in-person listening parties, and Universal’s collaborations with Roblox, including the company’s Beat Galaxy music hub, virtual performances, and “fully immersive, 360-degree virtual Rolling Stones store”.
The focus is on the “superfans”, those willing to spend mass amounts on the artists they love. “The superfan DTC opportunity is not just a complimentary high growth revenue opportunity, it’s also an important competitive advantage that is increasing our appeal to artists and giving us the capability to do more for them than our competitors,” Nash added.
According to Music Business Worldwide, Nash also revealed Universal’s direct-to-consumer revenues. He claimed the company has seen a compound annual growth rate of 33% thanks to direct-to-consumer tactics.
The new tier is also rumoured to add remix and mashup functions, however, mashups could be a grey area in terms of ownership and who is entitled to royalties. As Miss Krystle says, if a user mashes up two artist’s tracks, then uses an AI filter to shift the genre, “who the hell does the mash up song belong to?”
“I think that this is something that could be really, really terrible for creatives,” she emphasises. “Even for me – I’m an independent artist, and I’m scared about what this means.”
