Glossary · Economics

Playlist placement

also filed under: playlisting, editorial playlist, playlist pitch

Playlist placement is the inclusion of a track on a streaming service's editorial or algorithmic playlist, which raises stream volume and therefore payout.

The mechanism

Editorial placements are chosen by service staff and pitched through official channels. Algorithmic placements are generated from listener behaviour signals such as save rate, completion rate and skip rate. Both increase the numerator in the pool-share calculation that determines payout.

A worked example

A track added to a large editorial playlist can multiply monthly streams, but because payout is a share of a revenue pool rather than a fixed price per play, the resulting income depends on the pool and the total streams across the platform in that period.

What it is confused with

Why it matters

It is the single largest short-term lever on streaming income, and the difference between official pitching and bought placement is the difference between growth and a takedown.

Sources: US Copyright Office
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Related: Recoupment · Black box royalties · 360 deal