Billboard Reworking How Charts Are Compiled

Billboard magazine is ending its practice of giving equal weight to paid streams and free streams in its music charts.

Currently a single that is bought from Apple’s download store or streamed on its paid subscription service is viewed the same as a free stream on YouTube for the purposes of Billboard’s “Hot 100.” Next year, Billboard said it will prioritize paid streams, meaning artists might be more inclined to promote their songs on paid services such as Apple's to boost their chances of rising up the charts.

According to NBC News,  the decision is a blow to Google’s YouTube, which had hoped to broaden its representation and was in talks with Billboard about being included in the album charts. YouTube has a gigantic free ad-supported video streaming business.

Billboard said late Thursday on its website that it is retooling the formulation of its charts, which are compiled by Nielsen Music. “Beginning in 2018, plays occurring on paid subscription-based music services (such as Amazon Music and Apple Music) or on the paid subscription tiers of hybrid paid/ad supported platforms (such as SoundCloud and Spotify) will be given more weight in chart calculations than those plays on pure ad-supported services (such as YouTube) or on the non-paid tiers of hybrid paid/ad-supported services," Billboard said.

The statement went on the clarify that video streams would not count into the album chart calculations.

Jimmy Iovine, who is head of Apple Music, has been arguing against YouTube growing its influence.

He told NBC News that artists say they work with YouTube to promote their records because it currently counts the same as a paid stream. “How can the record industry let that go down? It is not in their interest to promote a free tier.” He also described YouTube as “fake news,” meaning that its traffic is open to manipulation.

The music labels receive a much bigger cut from paid streaming services than they do from YouTube’s advertising. Independent labels have also been agitating for change.