MBW Views is a collection of op-eds from eminent music business individuals… with one thing to say.
That’s actually the case with this newest version, with one necessary distinction: the one that has penned the beneath commentary has requested anonymity.
We are able to let you know, nonetheless, that this particular person is a good determine on the planet of unbiased music distribution and companies, working an organization with international affect.
They’ve cloaked their identification on account of apparent enterprise sensitivities, to talk overtly and actually on a matter that worries each legit music rightsholder: streaming fraud.
In an electronic mail accompanying the beneath op/ed, our nameless govt mentioned: “I detest fraudsters… [and] we must always do all the pieces in our energy to clamp down on them.”
He continued: “The twist is that these very DSPs who’ve pressured us into the function of policing streaming usually are not giving us – and corporations like ours – probably the most primary instruments to battle that battle.”
Learn on for his full views on the matter…
The Invisible Epidemic of Synthetic Streaming
Streaming fraud stays one of the persistent and harmful challenges within the digital music ecosystem.
From bot-driven synthetic streams to the unauthorized distribution of unlicensed content material, the result’s distortion of royalty distribution, chart inflation, and the diversion of income from legit creators. Whereas the music business has superior Know Your Buyer (KYC) processes and fraud detection instruments, the platforms who may do probably the most to unravel the issue stay largely passive.
“The present system just isn’t working. Artists and label distributors are being harm by the fraud, whereas the fraudsters usually are not being punished.”
Fraudulent streaming is not only a nuisance; it’s a systemic drawback that undermines the legitimacy of stakeholders throughout the ecosystem. But the events most frequently penalized aren’t the dangerous actors themselves — however slightly the distributors and labels who depend on good religion relationships with these platforms.
The present system just isn’t working. Artists and label distributors are being harm by the fraud, whereas the fraudsters usually are not being punished.
Streaming platforms, in the meantime, have the facility to considerably change this actuality. Why aren’t they serving to?
An Uneven Taking part in Area
Streaming platforms have full visibility into behavioral knowledge — IP addresses, gadget varieties, listening patterns, app sources, geographic and OS consistency — however they select to not share it.
They’ll detect:
- A single person looping a monitor 200 instances from a high-risk area
- 90% of a tune’s performs originating from one app supply in two days
- Whether or not streams are natural or artificial
This makes platforms the one entities with a panoramic view of the complete ecosystem. They’ll hint anomalies to particular gadgets, accounts, or areas — however they don’t act constantly on this perception.
As an alternative, they push the burden of accountability downstream. Distributors and labels should cobble collectively guide KYC checks, ISRC scans, and metadata vetting — with out entry to the behavioral knowledge which truly reveals fraud.
And when fraud is flagged, it’s these companions who face takedowns, withheld royalties, or account suspensions.
Regardless of missing important knowledge and dealing at nighttime, many distributors work onerous to forestall fraud:
- Authenticating documentation;
- Verifying social and streaming presence;
- Vetting ISRCs and content material rights;
- Analysing royalty knowledge for anomalies.
They usually exceed platform requirements — rejecting unauthorized remixes, recognizing metadata purple flags, and reviewing geographic inconsistencies.
However with out visibility into anonymized person habits, they will’t detect patterns or repeat offenders.
So why are the entities with the least perception those held most accountable?
A Damaged Mannequin
Right here’s the core injustice: platforms maintain the keys to fraud prevention however anticipate labels, distributors, and rights managers to police an ecosystem they will’t absolutely see. The information wanted to determine and block dangerous actors sits in platform silos, locked away behind proprietary APIs and opaque evaluation processes.
Distributors are anticipated to run refined KYC/AML processes, audit metadata, confirm rights, artist authenticity, cross-reference catalog possession, monitor ISRC reuse, and analyze earnings for anomalies. Some even reject content material based mostly on metadata that means sped-up/slowed-down variations, mashups, or suspicious by-product works.
However when probably the most important indicators — real-time streaming habits, person demographics, gadget focus — are withheld or delayed, these efforts are solely half-effective.
When fraud is detected, the takedowns hit the distributors – the very corporations that exist in service of labels and artists. The account suspensions land on their heads. Royalties are withheld. Reputations are broken. Belief is eroded.
All whereas the platforms (and generally the fraud) quietly proceed enterprise as regular, usually refusing to even clarify the rationale behind enforcement actions.
This technique punishes compliance and undermines belief as a substitute of incentivizing collaboration.
What Must Change: A New Shared Accountability Framework
Platforms should match the efforts they demand of labels and distributors and turn into energetic companions within the battle towards exercise which damages the credibility of the complete music ecosystem… which incorporates DSPs.
Just some issues they might do:
- Supply real-time dashboards: Present real-time synthetic streaming knowledge.
- Share fraud indicators (e.g., gadget uniformity, OS focus)
- Give clear suggestions: Present knowledge when taking down tracks or withholding royalties.
- Share intelligence: Allow cross-platform fraud flagging. Create shared fraud libraries for flagged ISRCs and metadata patterns
- Implement pretty: Align accountability with knowledge entry. Shift from reactive strikes to proactive alerts
The Backside Line: Platforms Should Cease Being Passive Observers and Be a part of Music’s Collective Combat In opposition to Fraud
Music is combating an uphill battle towards streaming fraud — however that battle could possibly be a lot more practical if each a part of the legit provide chain performed their half.
DSPs have to recognise that it’s fraudsters, not legit labels and distributors who’re the enemy.
It’s not sufficient to scrub your palms and fake it’s anyone’s else drawback. Platforms have an obligation not solely to their customers, however to the complete music worth chain. That begins with transparency, well timed knowledge, and shared accountability. With out it, the fallacious individuals will proceed to pay the value.
Fraud isn’t only a distributor problem. It’s additionally a platform drawback — and platforms want to start out performing prefer it.Music Enterprise Worldwide
