IMPALA Blasts Amazon Music's Artist-Centric Streaming Thresholds, Warns of 70% Revenue Impact

IMPALA Blasts Amazon Music's Artist-Centric Streaming Thresholds, Warns of 70% Revenue Impact

By Marcus Bennett

March 9, 2025 at 07:28 AM

Amazon Music has implemented minimum-play thresholds as part of its new "artist-centric" model, drawing criticism from IMPALA (Independent Music Companies Association) due to its significant impact on independent artists.

IMPALA reports that independent labels are being required to accept terms that include streaming thresholds before tracks can generate royalties. According to IMPALA's head Helen Smith, these changes are severely affecting independent artists, with some labels reporting that approximately 70% of their repertoire has been demonetized overnight.

IMPALA logo with Amazon Music text

IMPALA logo with Amazon Music text

This move follows similar actions by Spotify, which implemented a 1,000-stream annual minimum threshold for monetization. However, Amazon Music's specific threshold requirements remain unclear, considering its smaller user base compared to Spotify.

Key impacts of the new thresholds:

  • Majority of independent works no longer generate royalties
  • Increased competition with AI-generated content
  • Disproportionate effect on smaller artists and labels
  • Major label releases continue to generate payments

The situation has sparked discussions about alternative streaming platforms, with some artists exploring new services. For example, Snoop Dogg recently released music exclusively on Tune.fm, indicating a potential shift in the streaming landscape.

This development comes amid Universal Music's broader "Streaming 2.0" initiative and follows Amazon Music's recent price increases announced in January 2025.

Harry Styles performing at Las Vegas Sphere

Harry Styles performing at Las Vegas Sphere

The changes raise important questions about the future of music streaming, particularly regarding royalty calculations and the sustainability of the current model for independent artists.

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