Beatport and Beatdapp cooperate in the fight against music streaming fraud

Beatport and Beatdapp cooperate in the fight against music streaming fraud
Beatport and Beatdapp cooperate in the fight against music streaming fraud

Anti-fraud startup Beatdapp continues to make headlines with its data on how many music streams may be illegal—most recently with a Sky News report saying criminals could be making up to $3 billion a year from streaming fraud.

Now the company has announced its latest partnership with a music service that aims to solve this problem. Electronic music-focused DSP Beatport will use Beatdapp’s fraud detection technology.

“We launched streaming products under the Beatport and Beatsource brands in 2019 and despite not being a target of streaming fraud in the past, suspicious activity has increased in recent months,” said Helen Sartory, Chief Revenue Officer at Beatport.

“While our fraud rate is still half the industry average, we rely on accurate streaming data not only to ensure fair compensation for artists and labels, but also for track recommendations and analytics.”

Beatdapp co-CEO Andrew Batey spoke exclusively with Music Ally about the deal and its potential impact on both companies.

“In general, any time you show someone streaming numbers (or any numbers at all), there is an incentive to manipulate them. Even without Beatport’s numbers being public, we found fraud on their new streaming service,” he said.

“It was about half the industry average, but still pretty crazy considering they’re just getting started and they have a very select group of users. It shows that no platform is immune.”

“As Beatport expands and wants to make their numbers more public, they wanted to tackle fraud head-on. They don’t want any of that on their streaming service and want to make sure all streams are authentic and artists are paid accurately and correctly.”

The two companies ran a pilot project and then signed a full-time deal. Batey said that under the deal, Beatdapp will analyze thousands of data points to map Beatport streams and detect those that may be artificially manipulated.

“We have literally hundreds of machine learning models to identify all kinds of potential streaming fraud schemes, of which there are an ever-growing and massive number around the world,” he said.

Beatdapp’s ambitions are growing as the company works with more clients to address this problem and gains insight into the patterns.

“We are on track to create an overall count, not just a sample, of all streaming services this year. We will likely analyze most, if not all, of the world’s streaming services and nearly 80 trillion user events associated with those streams,” he said.

“Beatport is a great example of what our ideal partnership with a DSP looks like. They recognize that they are a growing platform, but they want to solve the problem up front. They don’t want fraud, and they want every artist to feel respected and fairly paid. They also want everyone to know that they are fighting streaming fraud head on.”

Batey added: “I expect many other streaming services – some of them large and publicly traded – to announce deals with Beatdapp in the coming months.”

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