Beatdapp, a streaming fraud detection platform, estimates that at least 10% of all song streams are fraudulent, which depletes the worldwide music industry’s earnings by $2 to $3 billion (£1.6 to £2.4 billion) annually.
Global streaming increased by 33% in 2023, with 7.1 trillion song streams recorded, according to the most recent data released by music analytics firm Luminate.
According to the International Federation of the Phonographic business, which represents the worldwide recording business, streaming revenue was $19.3 billion in the same year.
According to the study, over two thirds of the industry’s revenue comes from streaming.
The co-chief executives of Beatdapp, Andrew Batey and Morgan Hayduk, stated that fraud costs money to all parties involved in the digital music supply chain since it siphons off funds collected from subscription fees and advertising revenue that are distributed according to the number of streaming plays.
Fraud gangs operate under the guise of artists, uploading millions of songs to streaming sites and utilizing stolen account information to play them from either false or real accounts.
