Amazon Music may be following Spotify's lead in implementing a 1,000-stream minimum threshold for royalty payments, following a new "artist-centric" deal with Universal Music Group (UMG).

The recently announced partnership between Amazon Music and UMG emphasizes "artist-centric principles," though specific details remain undisclosed. This move mirrors Spotify's controversial policy implemented in April 2024, which requires tracks to achieve 1,000 annual plays before generating recording royalties.

Key aspects of the Amazon Music-UMG deal include:

• Joint advancement of artist-centric principles
• Enhanced fraud protection measures
• Exclusive content with UMG artists

This development comes amid several industry trends:

• Declining subscriber growth concerns
• Integration of audiobook content into streaming plans
• Potential reclassification of streaming plans as bundles

The deal's timing and structure suggest Amazon Music might adopt similar policies to Spotify, particularly regarding:

• Minimum stream thresholds for royalty payments
• Bundle classification to reduce royalty payments
• Enhanced focus on major label catalogs

The impact of these changes could significantly affect independent artists and smaller labels, while potentially benefiting major labels with high-streaming catalogs. Industry stakeholders await clarification on specific implementation details and their implications for artists, songwriters, and publishers.

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