Amazon Music's potential introduction of a 1,000-stream minimum threshold for royalty payments is being discussed following their recent "artist-centric" partnership with Universal Music Group (UMG). This development mirrors Spotify's controversial policy implemented in April 2024.

The new UMG deal focuses on several key areas:

• Advancement of "artist-centric principles"
• Enhanced fraud protection measures
• Exclusive content with UMG artists

While specific details remain undisclosed, UMG CEO Lucian Grainge praised Amazon Music's "deep commitment to the interests of our artists." This partnership emerges amid industry changes, including:

• Spotify's implementation of a 1,000-stream minimum for royalty payments
• Concerns about declining subscriber numbers
• Slowing subscription revenue growth for major labels
• Amazon Music's integration of monthly audiobooks into existing plans

The streaming service's recent addition of audiobooks to its plans raises questions about potential reclassification as bundles, which could significantly reduce royalty payments to songwriters and publishers through the "bundling loophole" in the Phono IV determination.

The impact of these changes could be significant for:

• Independent artists
• Unsigned musicians
• Songwriters
• Publishers

The industry awaits clarification on whether Amazon Music will follow Spotify's lead in implementing similar royalty policies and bundle classifications, which could reshape the streaming landscape through 2025 and beyond.

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