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Friday, January 5, 2018

THE WEIGHTING IS THE HARDEST PART, CONTINUED

On-demand audio streaming increased to 400 billion streams in 2017. Under current industry-standard chart metrics, that would translate to 267 million equivalent albums. Proposals currently being negotiated would increase paid streams in value by counting 1,250 streams as one album. Ad-supported streams, however, would be reduced in value, with either 3,750 or 5,000 streams counting as one unit on the album chart.

According to rights holders, at 1,250/3,750, this year's 400 billion streams would equal 277 million albums while the calculation at 1,250/5,000 would result in 271 million.

While overall this doesn't change the end result by much, it does reduce the importance of ad-supported streams and how they contribute to the album chart.

Speaking of calculations, how might the diminished weight of free-tier streams affect Spotify's IPO? Just asking.

 
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