Deezer Introduces a New Payment System to Directly Compensate Artists for Their Streams

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Photo Credit: Deezer

Deezer’s User-Centric Payment System (UCPS) is a new payment model that could potentially revolutionize the way in which artists are compensated for their music on streaming platforms. Under the current system, streaming services such as Spotify and Deezer pay a percentage of their revenue to record labels and digital distributors, who then pay artists based on their share of the total number of plays across the platform. This often means that small artists receive a fraction of a penny for each play, while larger, major-label artists receive a much larger share.

UCPS aims to change this by ensuring that artists are paid directly for each stream of their music. The new payment system would mean that subscription fees paid by each user would go directly to the artists they listen to, instead of being pooled and divided among all artists based on total plays. This would mean that each artist would be paid a fair share of the revenue generated by their music, based on the number of people who listen to their tracks.

Deezer has stated that the new payment model would help to eliminate streaming fraud from bots, which can impact pooled royalty payments. The company has also said that it already has the technology to implement the new payment system and has secured agreements from over 40 other labels. However, the company will need to get the Big Three major labels on board to make the system a success.

UCPS could help indie artists earn up to 30% more, according to Deezer. Top-streaming artists may see a decrease of up to 10% in their bottom line, but the benefits of UCPS are expected to outweigh this. The new payment system will help eliminate chart distortion from younger listeners. The 18-25 market generates 19% of subscribers, but only around 24% of total royalties. The general idea is to get artists paid for the listeners they do have, instead of counting on tiny percentages of a much larger pool.

The idea of UCPS has gained the attention of music industry experts and artists alike. Many have praised the proposed system for its potential to level the playing field and pay artists fairly for their work. However, some are skeptical about the feasibility of implementing such a system on a global scale, especially given the resistance from major record labels.

Deezer’s UCPS has already gained the attention of the #MakeStreamingFair social media campaign, which is hoping to bring attention to the new payment method. The campaign aims to promote fair compensation for artists based on their listenership.

It remains to be seen whether Deezer’s UCPS will be successful in changing the way that streaming services pay artists. However, the proposed system has sparked an important conversation about the future of the music industry and the need for fair compensation for artists. As the music industry continues to evolve, it is clear that new solutions will be needed to ensure that artists are paid fairly for their work and that the industry remains sustainable for all stakeholders.

11 Responses

  1. Berry

    Great job Deezer.

    The problem is Deezer has a small catalogue and its recommendation function can’t get you new songs so it barely attract users which likely won’t persuade many people to support their artists on Deezer.

    Apple music said it supports indie artists, let’s see if Apple will join this campaign as well.

  2. It Don't Mean A Thing

    If the numbers rent in real time!
    GREATEST ART THEFT IN THE ?

  3. hyundai

    Apple music already explored user centric and found out it doesn’t really work well, they stayed on the pool model.

      • REALLY THOUGH?

        Only because it was too accurate a count for the Independent artists and now they can hide there crimes better in the dark!
        You really think a these billboard top 100 are the real numbers!!!
        Lil Naz X out play Mariah Carey’s Record?????
        Just like the Recording Academy keeps voting for Beyonce to win her 100th Grammy?
        Can I sell you a bridge?

        • Blobbo

          I’m really ready to just promote via radio and bandzoogle and live shows, and just say F Spotify, and maybe Apple also. These companies don’t give a F about artists. They can keep all those big name hacks producing pure trash.

  4. Shibuya

    if a user streams 2000 songs a month
    another streams 300 songs a month

    user 1 has listened a lot more music than user 2 , but they generate the same royalties.

    How is that fair lol?

    Deezer is a scam.

  5. Blobbo

    The whole system is such bullshit. Someone used to walk or click into a store and buy someone’s product, and then walk out, and that sale was marked directly to that artist. This pool system is nonsense, and people’s heads should roll for it. It supports a system of garbage hackery at the top. I don’t understand why artists lawyers aren’t doing more about this.

    • BAC

      Right, the old system was so much better. You walked into a store and bought a $15.98 list price album. The band’s contract gave them maybe 12 1/2% to 15% of the retail price as net, so a little over $2, to be split 4 or 5 or 6 ways, so about 35 to 50 cents per band member, although shave off a bit more for the manager. But if the the advance wasn’t recouped, the band would never see the money. The label will own the rights to the Master recording for decades. Might be a few years before the writers will see some publishing money, if there wasn’t an advance made. Perhaps they could get a song placed in an Adam Sandler movie that bombed, or some TV series on WB, but that will cost ya.

      • Dean Hajas

        At a 165,000 plays on spotify for my new single in 2 months, I’ve officially got the equivalent of 150 sales according to Music Canada.
        It’s a joke….the numbers are in favour of everyone other then the Creator.

      • BLobbo

        SHove it. This stupid argument that the old system was crap, therefore the new system should also be crap is bullshit.

        In a country not run by stinking sheithead capitalists, there could EASILY be a govt or music union run central music depot, where listeners played small amounts to rent music or more to buy it, just like a transit card, and 90% of their selections went straight to the uploaders, and the rest to administration, all of which would be regulated and controlled. This all-you-can-steal a la carte bullshit should stop, especially when the indies aren’t even tracked properly.

        Your’e a dirty apologist for the bald Swedish thief in Sweden. F him.