What is two-tier licensing in streaming?

Recent developments in music streaming, as seen with Deezer and Spotify, signal a shift in the treatment of artists and specific genres on these platforms. The alterations extend to payment structures, departing from a universal definition for streams. This emerging trend, currently encapsulated by Deezer and Spotify, is likely to impact the broader music streaming industry. The introduction of two-tier licensing introduces a nuanced approach to streaming royalties, where certain songs earn more based on predefined criteria, such as reaching a specified stream threshold. In Spotify’s case, songs with over 1,000 streams will receive payment, altering the previous one-size-fits-all model. The redefinition of qualified streams, particularly for non-musical noise tracks, and Deezer’s distinct model, emphasizing engagement for increased artist payments, signify a pivotal moment in shaping the future of music streaming and its impact on artists, both established and emerging.