“It’s common to see fraud between 20-60% of all streams on multiple distributors” – Beatdapp's Andrew Batey and Morgan Hayduk talk streaming fraud
Nov 8, 2023
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Andrew Batey and Morgan Hayduk, co-CEOs of Beatdapp, discuss alarming statistics on streaming fraud, revealing that 40%-60% of streams from well-known distributors are fraudulent. They explore the rise of bot attacks and credential stuffing, the vulnerability of streaming platforms to fraud, and the recent changes to payment thresholds.
40 to 60% of all streams from songs distributed by well-known distributors are fraudulent, highlighting the significant prevalence of streaming fraud in the industry.
Collaboration among all stakeholders, including streaming platforms, industry stakeholders, and fraud detection companies, is crucial in combating streaming fraud and creating a more challenging environment for fraudsters.
Deep dives
State of Streaming Fraud
Andrew Beatty and Morgan Heydock, co-CEO and co-founder of Beatdap, join the podcast to discuss the state of streaming fraud. They share shocking statistics, revealing that 40 to 60% of all streams from songs distributed by well-known distributors are fraudulent. The majority of streaming fraud is financially motivated and conducted by scammers, not artists themselves. They explain how fraudulent actors blend in by using account takeovers and why it's becoming more difficult to detect fraud. Andrew and Morgan emphasize the importance of collective efforts to combat fraud in the music industry.
Extent of Streaming Fraud
Andrew and Morgan discuss the scale of streaming fraud and the challenges it poses. They mention that they have analyzed approximately 1.4 trillion streams and 30 trillion data points to gain a better understanding of the problem. They highlight the risks for artists and rights owners, as fraudulent streams result in a loss of market share and revenue. They also explain the complex nature of fraud, involving various layers and entities within the streaming ecosystem. Despite efforts to detect and combat fraud, they acknowledge that the problem persists and requires ongoing vigilance.
Fraudulent Streams and Distributors
The podcast reveals that fraudulent streams account for a significant portion of streams processed by certain well-known distributors. Andrew and Morgan share statistics stating that between 20 and 60% of all streams on these distributors are fraudulent. They emphasize that this issue affects DIY platforms and caution against solely blaming distributors. They mention that Beatdap has been working with distributors to help identify potential fraudsters and prevent them from uploading fraudulent content. They stress the importance of collaboration among all stakeholders to address streaming fraud.
Aspirational Goals and Industry Collaboration
Andrew and Morgan discuss the aspirational goals of combating streaming fraud, aiming for zero fraud but acknowledging the ongoing presence of fraud in any system. They believe that less than 1% of all streaming being fraudulent is a realistic and attainable goal. They highlight the importance of collaboration and coordination among streaming platforms, industry stakeholders, and fraud detection companies like Beatdap. Their goal is to collectively defend the industry and create a more challenging environment for fraudsters, reducing the appeal of committing fraud in the music streaming space.
Ep. 130: Andrew Batey and Morgan Hayduk are both co-CEOs & co-founders of Beatdapp, a platform which processes huge quantities of data to detect streaming fraud for clients like labels and streaming platforms. Editor Joe Sparrow welcomes them back to the podcast to update us on the state of streaming fraud – and they have some truly shocking statistics to share.
They chat to Joe about the recent changes in streaming fraud, what percentage of all streaming is actually fraudulent, how many billions of dollars will be siphoned out via fraud this year, and reveal a remarkable statistic: that 40%-60% of all streams from songs distributed via many well-known distributors are fraudulent.
(It’s worth noting we spoke before some DSPs announced changes to their payment thresholds, which will require songs to get a certain number of streams before payout.)