Music Distributors Launch Streaming Integrity Initiative to Combat Fraud

New Initiative to Combat Streaming Fraud

The International Federation of the Phonographic Industry (IFPI), representing over 8,000 record companies, has launched the Streaming Integrity Initiative (SII). This new commitment aims to combat fraud in music streaming, which involves manipulating digital music services to generate non-genuine revenue. The initiative seeks to protect artists, songwriters, and fans from the harm caused by such fraudulent activities.

Impact of Streaming Fraud

Streaming fraud operates at scale, undermining trust in streaming services and diverting revenue from legitimate artists, songwriters, record labels, and music publishers. The IFPI emphasizes that this issue is exacerbated by the growth of AI and advanced technological tools, which provide new opportunities for bad actors to commit these crimes.

Five Key Commitments for Distributors

Under the SII, participating music distributors commit to five core actions. These include verifying rights ownership and customer identities through robust rights verification and Know Your Customer (KYC) processes, and vetting content using effective tools to identify infringement, fraudulent activity, and AI-related risks. Distributors also commit to detecting, investigating, and mitigating suspected fraud, including taking action against repeat offenders.

Collaboration and Continuous Improvement

The initiative also requires distributors to share intelligence, where legally permissible, to prevent fraudulent actors from moving between services and platforms. Finally, participants will measure and continuously strengthen their anti-fraud systems to adapt to evolving threats. Initial supporters of the SII include Sony Music Group, Universal Music Group, and Merlin, with IFPI encouraging more companies to join.