Here are three common forms of streaming fraud to be on the look out for.
of — and vocal about — the challenges of the streaming model, fraudulent streams have become a source of growing frustration. “Every penny that goes to a fraudulent stream is a penny that doesn’t go to a legitimate stream,” says, president and CEO of the American Association of Independent Music. “Fraudulently increased stream counts can affect recording budgets, licensing deals, catalog valuations and can result in the misallocation of marketing budgets.
The French study, conducted without data from YouTube, Apple Music, or Amazon Music, found that 1% to 3% of plays were fraudulent, while also noting somberly that “the reality of fake streams goes beyond what is detected.” Beatdapp, a Vancouver-based company that creates fraud detection software for labels, publishers, distributors and streaming services, believes the global level of fraud is higher. “In 2020, estimates were 3 to 10% of all streaming activity was fraud,” the company.
So what forms does streaming fraud take? According to Burgess, the practice “covers a multitude of techniques used to increase stream counts or impressions by other than legitimate means.”Discussion of streaming fraud often turns quickly to bots, which Burgess defines as “automated software that can be used to generate views, streams or interactions.
“If I’m trying to push numbers up, I’m going to do it across streaming services in a subtle fashion this way,” Beatdapp co-CEOsays. “Spread it across a lot of accounts and multiple platforms, and you can drive a significant number of plays with no one looking.”Streaming services are looking for suspicious play patterns that don’t reflect human behavior. Fraudsters are aware of this, so they try to camouflage their activity in ways that appear human.
“It happens to every single viral artist,” says one manager who shepherded a viral act to a major-label deal last year. There are many distribution companies out there, and managers say that some of them have lax oversight of what’s being uploaded to the DSPs through their platforms. This means artists and their teams have to keep close watch on streaming platforms and issue takedowns when they find imposter versions.
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