IMPALA - the pan-European organisation for the independent music community - has asked Spotify if it can suspend its big revamp to the way royalties are calculated each month, in order to allow more debate about the changes within the music community.
That request comes at the top of a list of questions for Spotify about the changes it announced last month. Questions which, IMPALA says, will "assist Spotify in reforming its system, in a way that benefits the independent community, including the artists of today and tomorrow".
"IMPALA shares the view of streaming companies that the model created by Spotify in 2008 needs to be rethought", says Mark Kitcatt, CEO of Everlasting Records and Chair of the trade body's Streaming Reform Group. However, he adds, "The first test for change must be that it is understood to be fair and reasonable by all participants".
Independent labels, like artists and songwriters, are frustrated that Spotify is implementing its changes without much consultation of the music community beyond the major record companies.
As a result of those changes, Spotify will treat functional audio like white noise and bird song differently when allocating revenue to individual tracks each month. And, more controversially, it is introducing a 1000 play threshold for all music - so that any track must have been played at least 1000 times in the previous year to be allocated any money at all.
The changes are being made under pressure from the majors. That said, indies and music-makers have been raising concerns about the current streaming business model for years and some of the changes deal with those issues. However, some of the changes have divided opinion in the wider music community. And many are annoyed at the lack of consultation.
The 1000 play threshold is a particular focus in IMPALA’s questions, which you can read in full here. The trade group seeks clarity on how the threshold will work and data about the potential impact, and also proposes a number of refinements.
It also raises the competition law implications of freezing grassroots artists out of monetisation and asks "has Spotify considered the potential mental health impact on artists whose repertoire could be qualified as a failure under the new system?"
IMPALA also wants Spotify to respond to its owns proposals for reforming the streaming business model, which it published in 2021 and updated earlier this year. "What are Spotify's views on the proposals outlined in IMPALA's plan on how to change allocation of revenues?” it asks. “Can these also be integrated into the reform efforts?"
Of course, the extent to which any other proposals can be considered - or refinements to the 1000 play threshold can be discussed - depends very much on the answer to that first crucial question: "Can Spotify suspend the implementation of these new policies to accommodate further debate?"
Given that the streaming firm presented its changes last month very much as a fait accompli, the answer to that question will be particularly interesting.