Spotify’s 1,000-Stream Threshold Faces Criticism From Southeast European Indie Labels

A new study by the Association of Independent Music Publishers and Producers Bulgaria (ANMIP-BG) has flagged growing concerns around Spotify’s 1,000-stream annual threshold, warning that the policy is disproportionately impacting independent artists and labels across Southeast Europe,especially those with extensive back catalogues.

Under Spotify’s current model, tracks must reach at least 1,000 plays in a year before they are eligible to generate royalties. Critics argue that this benchmark effectively sidelines smaller, niche, and genre-diverse artists who may not accumulate streams quickly, despite continuing to contribute culturally and creatively to the ecosystem.

ANMIP-BG surveyed 71 independent labels and artists across the region. Of those respondents, 85% reported a decline in revenue since the policy was introduced, while 65% described the impact as “significant.”

Serbia-based Take It or Leave It Records described the threshold as particularly damaging for artists working outside mainstream genres. “The policy is especially punishing for artists who may not hit 1,000 streams quickly but still create valuable music,” the label said, adding that Spotify should consider a more inclusive payout model similar to YouTube’s.

Not all respondents reported severe consequences. Vasil Anastasov, co-founder of MUZE Music, said the revenue decline has so far been manageable. “However,” he warned, “if the threshold were raised further, it would create serious challenges for us.”

Beyond revenue loss, the study also raised alarms about the increasing presence of AI-generated music on streaming platforms. Some participants noted that machine-created tracks can more easily reach the minimum threshold, potentially diverting royalties, playlist placements, and listener attention away from human artists.

Participants proposed several possible remedies. Around 40% called for lowering or removing the threshold entirely, while 35% suggested algorithmic changes to better support emerging and lesser-known artists. Another 25% advocated for the appointment of local curators to improve regional representation and playlist access.

Responding to the findings, Spotify emphasised that the survey reflects a limited sample size and does not capture broader market trends. A company spokesperson stated: “For many licensors with meaningful listening,including those in Southeast Europe who are not represented in this limited survey—overall Spotify payouts increased under this policy, and they are finding success.”

The spokesperson pointed to IFPI Europe data showing strong regional growth, noting that Central and South Eastern Europe were among the fastest-growing music markets. Romania recorded a 26.9% revenue increase in 2024, while streaming revenue alone grew by 29.7%.

Spotify also highlighted that 99.5% of total listening occurs on tracks that surpass the 1,000-stream threshold, which now earn higher payouts under the revised model. According to the company, tracks affected by the policy previously generated approximately $0.02 per month,amounts that often failed to reach artists due to distributor payout minimums.

“The royalty pool Spotify pays out has not changed,” the spokesperson added. “Funds that were previously lost at the distributor level are now redirected to tracks with more than 1,000 annual streams, where artists can reliably receive them. We remain committed to supporting artists and labels across all markets.”

The debate reflects broader tensions around streaming economics and royalty distribution, particularly for independent creators operating in emerging markets. As streaming continues to dominate global music consumption, policies like Spotify’s 1,000-stream threshold are likely to remain central to discussions on equity, sustainability, and fair compensation in the digital music economy.