The Pace Report Vol. 15

In an effort to combat the $2B streaming fraud industry, Spotify has unveiled significant alterations to its royalty payout model, slated to take effect by early 2024. The music streaming behemoth will introduce a minimum threshold of streams for a song to qualify for royalty payments, outlined penalties for fraud, and restrictions on royalty payments for short “noise” tracks. 

This initiative is propelled by the eye-popping volume of music submitted to Spotify and its rivals, with a staggering 120,000 new tracks uploaded to streaming services every day, as per Forbes​.

With the likes of generative AI platforms capable of churning out songs at a dizzying rate - a notable example being music AI startup Mubert boasting a library of 56 million AI-generated tracks - the situation is morphing into a double-edged sword for both artists and streaming platforms​​. 

Spotify’s new royalty model is a step towards sieving through the overwhelming influx of tracks, aiming to ensure that revenue reaches 'legitimate' artists and curbing streaming fraud which encompasses techniques like bot nets playing the same songs repetitively, identity theft to generate false plays, and uploading famous artists' material illegitimately​. By realigning the royalty distribution framework, Spotify is not only attempting to uphold the integrity of its platform but also striving to provide a fair playing ground for authentic creators. 

The Museum of Modern Art (MoMA) in New York has marked a significant milestone by acquiring Refik Anadol’s “Unsupervised – Machine Hallucinations,” a tokenized artwork that now graces its permanent collection. 

This acquisition, announced on October 10, 2023, stands as MoMA's inaugural venture into the realm of tokenized art, symbolizing a monumental fusion of traditional artistry with the cutting-edge blockchain technology​​. "Unsupervised" is a groundbreaking installation housed in MoMA’s ground-floor Gund Lobby, featuring three new digital artworks by Refik Anadol. Known for his avant-garde digital creations and public installations, Anadol has orchestrated a singular and unparalleled meditation on technology, creativity, and modern art through this piece​​. Utilizing artificial intelligence, "Unsupervised" interprets and transforms over 200 years of art, presenting a novel visual narrative that echoes the rich history while exploring the boundless horizons of artistic expression in the digital age​.

This acquisition by MoMA is emblematic of the burgeoning intersection between traditional art institutions and the digital creator economy. By embracing "Unsupervised," MoMA not only showcases its adaptability to the evolving art landscape but also amplifies the discourse on the integration of blockchain and AI in the art world, setting a precedent for other institutions. 

During TwitchCon 2023, Twitch announced a significant policy change allowing simulcasting, a feature enabling creators to broadcast their content simultaneously across various platforms like YouTube and Facebook, alongside Twitch. This shift, driven by creator feedback, signifies Twitch's endeavor to accommodate the diversifying livestreaming landscape. Chief Marketing Officer Rachel Delphin highlighted the importance of community on Twitch while acknowledging the competitive allure of other platforms. 

Historically, Twitch declined to allow simulcasting as part of its strategy to maintain exclusivity with creators and keep both them and their audiences solely on its platform. This exclusivity helped Twitch build a strong community and ensure that the content generated on its platform stayed unique to it, which in turn, encouraged viewers to use Twitch over other platforms. Over time, as the creator economy evolved and creators sought to expand their audiences across multiple platforms, the demand for more flexible streaming policies like simulcasting grew, prompting Twitch to revisit its policy to better accommodate creators' needs​

In a groundbreaking collaboration, SKIMS, a brand co-founded by Kim Kardashian, and the NBA have unveiled a multi-year partnership which officially crowns SKIMS as the endorsed underwear brand of the NBA, WNBA, and USA Basketball. This alliance was heralded shortly after SKIMS launched its inaugural men's collection on October 26, with the partnership poised to be showcased at prominent future events including the NBA All-Star and the NBA In-Season Tournament​​.

The men's line, showcased in a campaign aptly titled “Every Body is Wearing SKIMS”, starred NBA All-Star Shai Gilgeous-Alexander, encapsulating three collections of daily essentials with a focus on comfort, style, and fit, thereby expanding the brand's reach to a fresh audience​. This partnership not only marks a significant stride in blending fashion with sports but also echoes the brand's rising cultural impact, as acknowledged by NBA Commissioner Adam Silver, who touted SKIMS as one of the most culturally influential brands of the times​.