This isn’t per artist, it’s per song, which means an artist might put out an album and only the single gets widespread play and if the few thousand plays the rest receive all fall just under 1k they’d be discounted to unpaid plays. Remember, for smaller artists every dollar counts. Most have already seen their revenues from music drop by 90-95% since Spotify ate the industry, so why should they be so willing to accept that the first 1k plays are worth $0.00 and the next are only worth $0.003 or less.

This is also compounded by their refusal to adopt a user-centric payment model where the artists you actually listened to that month are the ones your money goes to. Look at comparisons others have published and you’ll see how their current model siphons money from smaller artists towards major label artists (I’m discretely typing this in bits from our local chamber orchestra’s AGM and can’t look up facts for you atm).

With this change, it ensures that even moving to a user-centric model they’ll still be able to underpay smaller artists. It’s not so alarming on its own, but it ensures they can continue to keep the status quo even if they give in to pressure and adopt a user-centric payment model by being able to not have to pay for much of their catalog.