Amazon Music may be following Spotify's lead by implementing a 1,000-stream minimum threshold for royalty payments, based on recent developments in their "artist-centric" partnership with Universal Music Group (UMG).

The new UMG deal, announced Monday, emphasizes "artist-centric principles" though specific details remain undisclosed. This language mirrors recent industry shifts, particularly Spotify's controversial April 2024 policy requiring 1,000 annual streams before tracks can earn recording royalties.

Key aspects of the Amazon Music-UMG partnership include:

• Joint advancement of "artist-centric principles"
• Enhanced fraud protection measures
• Exclusive UMG artist content
• Integration with Audible audiobooks

The timing is significant, considering:

• Spotify's similar policy has already dramatically impacted indie artists while benefiting major labels
• Declining subscriber growth across streaming platforms
• Recent addition of audiobook content to Amazon Music subscriptions

UMG CEO Lucian Grainge praised Amazon Music's "deep commitment to the interests of our artists," suggesting potential alignment with Spotify's approach. Amazon Music has not yet confirmed whether they will implement a minimum stream threshold.

The arrangement could have major implications for:

• Independent and unsigned artists
• Royalty distribution models
• Music industry revenue structure
• Integration of streaming and audiobook content

This development comes amid broader industry changes, including concerns about subscriber decline and streaming revenue growth. The impact of these changes will likely become clearer as we move into 2025.

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