spotify

Though making and distributing music has become easier than ever, the number of tracks being uploaded to digital service providers has fallen — not increased — in the last two years.
In the first quarter of 2023, an average of 120,000 tracks were being uploaded to DSPs each day, up from 93,400 in 2022, according to Luminate. That number dropped to 103,500 for the full year of 2023 and fell further to 99,000 last year, according to the company’s recently released 2024 year-end report. Normally, a decrease in the amount of new music tracked by Luminate wouldn’t merit much attention. But a 4% annual decline in new tracks is notable when today’s creators have an unprecedented number of tools to make music — including easy-to-use digital audio workstations like BandLab and generative artificial intelligence apps such as Suno — and can tap into global distribution.

Music professionals Billboard spoke to for this story pointed to numerous possible explanations for the drop in new tracks, with anti-fraud measures being the most widely cited reason for the decline. Bad actors are known to upload large numbers of tracks through do-it-yourself distributors before hacking into users’ streaming accounts to stream the songs. Erik Söderblom, chief product officer for music distributor Amuse, cites Spotify’s policy changes announced in 2023 to discourage labels and distributors from uploading tracks used to inflate streaming activity for the drop. “It has been a successful way for both of them as a DSP and us as a distributor to discourage fraudulent actors who abuse the system by releasing and monetizing large volumes of audio files through artificial streams,” he says.

Trending on Billboard

Beatdapp, which can identify when users’ accounts are hijacked and turned into bot farms that unknowingly stream music, has seen fraud rates decrease on the platforms it works with, says CEO Morgan Hayduk. While a small 4% decline in the scheme of millions of new tracks suggests there’s still ample music for these bot farms to illegally stream, Hayduk believes the financial penalties are having their intended effect. “I do think the DIY space is taking their end more seriously and trying not to be a conduit for this,” he says.

French streaming service Deezer introduced an “artist-centric” royalty payout scheme in 2023 to combat fraud and prioritize professional music over “functional” music such as background noise and nature sounds. But given Spotify’s far larger user base, the platform’s anti-fraud measures get more credit for creating outcomes favorable to artists and record labels. For instance, in 2023, Spotify began levying penalties on music distributors and labels when fraudulent tracks they uploaded had been detected. As a result, experts tell Billboard, better policing at the source of the problem could have resulted in distributors being wary of working with some creators.

While the anti-fraud measures may have had the intended effect and prevented some tracks from being uploaded, DistroKid, another self-serve distributor of independent artists, actually sent more tracks to DSPs in 2024 than the prior year. “There wasn’t a decrease in tracks uploaded to streaming services through DistroKid in 2024,” a company spokesperson said in a statement to Billboard. “The average number of tracks uploaded to streaming services each day steadily increased throughout the year.”

As for other, lesser factors, a likely candidate is Spotify’s 2023 decision to set a minimum threshold for royalty payouts at 1,000 streams. The policy received mixed reactions. Some critics called the threshold a penalty for developing artists who rely on royalties to help build their careers. But cutting off payments to the outer reaches of the long tail put Spotify in sync with major labels’ recent push for royalty accounting schemes that reward professional artists at the expense of, as Universal Music Group CEO Lucian Grainge put it in 2023, “merchants of garbage.”

Ending the practice of cutting tiny royalty checks may help DSPs’ goal of prioritizing professional musicians over a sea of unwanted content, but “may also dishearten early-stage artists who struggle to grow their project,” says Söderblom. As a result, fewer uploads would mean fewer new tracks could enter Luminate’s database. Will Page, author of Pivot: Eight Principles for Transforming Your Business, believes that the payout threshold likely had “a material effect on what Luminate gets to count.” After Spotify set a threshold for payouts at 1,000 streams, an artist would experience diminishing returns from uploading more unpopular music. According to Luminate, 93.2 million of the 202.2 million tracks in its database were streamed fewer than 10 times. Page, Spotify’s former chief economist, estimates that 99% of the 99,000 new tracks in 2024 made the recording artist less than $100 in royalties last year.

Anti-fraud measures and artist-centric royalty schemes may not account for all of the decline, though. Another factor could be a natural ebb in the supply of music. Söderblom sees 2022 as “a great year for DIY” because many artists had additional time to work on new music due to the COVID-19 pandemic. “The combination of accessible music production and distribution tools and a more or less global lockdown led to a huge influx of releases,” he says. “As the world returns to normal, it seems natural to see the volume of new uploads decline.” The same could be true of video creators. Last week, MIDiA Research declared that “the pandemic-induced content creation boom has peaked” after time spent creating content such as YouTube videos dropped in the second quarter of 2024 — marking the first decline since 2021.

Similarly, the 120,000 tracks uploaded daily in 2022 may have marked a peak of musicians uploading their back catalogs to distributors. MIDiA Research’s Mark Mulligan has surveyed amateur and semi-professional creators for five years. “A lot of them are in their 40s and 50s, and probably a lot are people who have been playing in bar bands and whatever else,” says Mulligan. “And they say, ‘Oh, we’ve got these demos. Let’s put them on Spotify.’ And so, they had a lot of back catalog that hadn’t been digitized before to put up there.” Those tracks weren’t necessarily new, but they were new to DIY distributors and streaming platforms. Once the backlog runs out, these artists may not have any other recordings to distribute.

Yet another explanation is the rise of social media as a destination for new music. Music streaming platforms and DIY distribution have leveled the playing field and given every artist an opportunity to reach listeners around the world. Still, many artists have realized they aren’t the next Taylor Swift and can’t get much traction at services such as Spotify and Apple Music. Streaming can work wonders for big artists, but the promise of democratization “has lost a lot of sheen,” says Mulligan. Small artists who don’t attract a crowd at Spotify can use social media or user-generated platforms such as Audiomack to connect with listeners. “They would rather have a small fan base who they can interact with than a large audience they can’t interact with,” he says. “Add that with the remuneration issue and it’s a much less compelling premise to go on streaming now than it was three, four years ago.”

If Mulligan’s hypothesis is true, the artist-centric approach adopted by Spotify, Deezer and others could end up hurting its biggest proponents: the major labels. Streaming platforms have essentially told long-tail artists, “We’re not going to stop you from coming in, but you’re not really welcome,” says Mulligan, which he thinks could have unintended consequences somewhere down the road. “Stop a generation of artists coming in,” he says, “and there’s a really good risk that you’ll inadvertently stop a generation of fans coming in if those artists go elsewhere to build their fan bases.”