Spotify: Difference between revisions

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==Summary of anti-consumer practices==

~~----~~

===Micro Payments per Stream===

* Label Retained Royalties:

*Label Retained Royalties:

:: Spotify pays artists between $0.003 and $0.005 per stream, requiring approximately 4 million monthly streams to earn $1,160, which is equal to a month of the U.S. minimum wage. High profile artists like Taylor Swift and Thom Yorke withdrew music in protest.

::Spotify pays artists between $0.003 and $0.005 per stream, requiring approximately 4 million monthly streams to earn $1,160, which is equal to a month of the U.S. minimum wage. High profile artists like Taylor Swift and Thom Yorke withdrew music in protest.

* Policy Changes Harming Indies:

*Policy Changes Harming Indies:

:: 70% of Spotify’s revenue goes to rights holders (e.g., record labels), but artists receive only 11% to 16% after the labels take their cuts. For example, Universal Music kept 73% of Spotify payouts.<~~sup~~>1</~~sup~~><~~sup~~>3</~~sup~~>

::70% of Spotify’s revenue goes to rights holders (e.g., record labels), but artists receive only 11% to 16% after the labels take their cuts. For example, Universal Music kept 73% of Spotify payouts.<ref name=":1">{{Cite web |title=Criticism of Spotify |url=https://en.wikipedia.org/wiki/Criticism_of_Spotify |website=Wikipedia}}</ref><ref name=":2">{{Cite web |title=The truth about Spotify |url=https://www.honest-broker.com/p/the-ugly-truth-about-spotify-is-finally}}</ref>

:: Spotify stopped paying royalties in 2023 for tracks with less than 1,000 annual streams, and diverted the approximately $40 million per year to major labels. This disproportionately impacted emerging artists.~~3~~

::Spotify stopped paying royalties in 2023 for tracks with less than 1,000 annual streams, and diverted the approximately $40 million per year to major labels. This disproportionately impacted emerging artists.

===Fake Artists and Playlist Manipulation===

* Perfect Fit Content (PFC) Program:

*Perfect Fit Content (PFC) Program:

:: An internal initiative to seed playlists with AI generated or low cost music (''e.g., ambient, jazz'') from Swedish producers. These tracks replaced human artists to reduce royalty payouts.<~~sup>~~2</~~sup~~>

::An internal initiative to seed playlists with AI generated or low cost music (''e.g., ambient, jazz'') from Swedish producers. These tracks replaced human artists to reduce royalty payouts.<ref name=":2" />

* Fake Artist Networks:

*Fake Artist Networks:

:: Investigators found 20 individuals operating under 500 aliases (''e.g., Trumpet Bumblefig, Vattio Bud'') generating millions of streams. One obscure Swedish jazz artist outperformed Grammy winning albums.<~~sup>~~2</~~sup~~>

::Investigators found 20 individuals operating under 500 aliases (''e.g., Trumpet Bumblefig, Vattio Bud'') generating millions of streams. One obscure Swedish jazz artist outperformed Grammy winning albums.<ref name=":2" />

* Consumer Deception:

*Consumer Deception:

:: Employees admitted listeners <q>wouldn’t know the difference</q> between authentic and PFC tracks, degrading content quality.<~~sup>~~2</~~sup~~>

::Employees admitted listeners <q>wouldn’t know the difference</q> between authentic and PFC tracks, degrading content quality.<ref name=":2" />

===Licensing Violations and Legal Battles===

* Unpaid Royalties:

*Unpaid Royalties:

:: In 2017 Spotify faced a $1.6 billion lawsuit from Wixen Music Publishing for hosting 10,000+ unlicensed songs by artists like Tom Petty and Neil Young.<~~sup~~>4</~~sup~~>

::In 2017 Spotify faced a $1.6 billion lawsuit from Wixen Music Publishing for hosting 10,000+ unlicensed songs by artists like Tom Petty and Neil Young.<ref name=":3">{{Cite web |title=Spotify Under Fire |url=https://www.recordingacademy.com/advocacy/news/spotify-under-fire-failing-properly-license-music--again |website=Recording Academy}}</ref>

* Repeated Non Compliance:

*Repeated Non Compliance:

:: Despite a 2015 pledge to fix <q>bad publishing data</q> Spotify’s $43 million settlement (2017) for unpaid mechanical licenses was deemed "inadequate" by industry groups.<~~sup>4<~~/~~sup~~>

::Despite a 2015 pledge to fix <q>bad publishing data</q> Spotify’s $43 million settlement (2017) for unpaid mechanical licenses was deemed "inadequate" by industry groups.<ref name=":3" />

* Bundling Schemes:

*Bundling Schemes:

:: The National Music Publishers Association (NMPA) condemned Spotify for bundling music with audiobooks to lower royalty rates, calling it "predatory".~~3~~

::The National Music Publishers Association (NMPA) condemned Spotify for bundling music with audiobooks to lower royalty rates, calling it "predatory".

===Privacy Violations and Data Misuse===

* Invasive Data Collection:

*Invasive Data Collection:

:: In 2015, Spotify demanded access to users’ contacts, photos, and location via mobile apps, triggering backlash over disproportionate data harvesting.~~8~~

::In 2015, Spotify demanded access to users’ contacts, photos, and location via mobile apps, triggering backlash over disproportionate data harvesting.

* Pay-for-Play Allegations:

*Pay-for-Play Allegations:

:: Spotify was accused of taking payments from labels to prioritize songs in playlists, mimicking payola scandals without transparency.<~~sup>~~1</~~sup~~>

::Spotify was accused of taking payments from labels to prioritize songs in playlists, mimicking payola scandals without transparency.<ref name=":1" />

===Price Hikes and Subscription Exploitation===

* Forced Price Increases:

*Forced Price Increases:

:: Under pressure from record labels (''e.g., Universal Music''), Spotify raised U.S. prices by 31% for duo plans and 25% for family plans (2023–2024). Similar hikes occurred in 50+ markets. ~~38~~

::Under pressure from record labels (''e.g., Universal Music''), Spotify raised U.S. prices by 31% for duo plans and 25% for family plans (2023–2024). Similar hikes occurred in 50+ markets.

* Label Profit Extraction:

*Label Profit Extraction:

:: Labels pushed hikes under the guise of "artist fairness," yet retained most revenue. For example, Universal’s streaming revenue grew 8.9% ~~YoY~~ in 2024.~~3~~

::Labels pushed hikes under the guise of "artist fairness," yet retained most revenue. For example, Universal’s streaming revenue grew 8.9% year-over-year in 2024.

{| class="wikitable"cellpadding="5"border="3, solid, gray"

{| class="wikitable" cellpadding="5" border="3, solid, gray"

|-

|+Spotify Subcription Price Increase (2023-2024)

|-

! scope="col"style="text-align:left;" | Plan Type

! scope="col" style="text-align:left;" |Plan Type

! scope="col"style="text-align:center;" | Price Increase

! scope="col" style="text-align:center;" |Price Increase

! scope="col"style="text-align:right;" | Key Markets Affected

! scope="col" style="text-align:right;" |Key Markets Affected

|-

! scope="row"style="text-align:left;" | Premium Individual

! scope="row" style="text-align:left;" |Premium Individual

! style="text-align:center;" | 10%

! style="text-align:center;" |10%

! style="text-align:right;" | USA UK EU

! style="text-align:right;" |USA UK EU

|-

! scope="row"style="text-align:left;" | Premium Duo

! scope="row" style="text-align:left;" |Premium Duo

! style="text-align:center;" | 31%

! style="text-align:center;" |31%

! style="text-align:right;" | Global

! style="text-align:right;" |Global

|-

! scope="row"style="text-align:left;" | Premium Family

! scope="row" style="text-align:left;" |Premium Family

! style="text-align:center;" | 25%

! style="text-align:center;" |25%

! style="text-align:right;" | 50+ countries

! style="text-align:right;" |50+ countries

|-

! scope="row"style="text-align:left;" | Student

! scope="row" style="text-align:left;" |Student

! style="text-align:center;" | 20%

! style="text-align:center;" |20%

! style="text-align:right;" | USA Australia

! style="text-align:right;" |USA Australia

|}

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===Genre Manipulation and Cultural Appropriation===

: Spotify invented vague algorithm-driven genres ''inspired by TikTok'' such as:

:Spotify invented vague algorithm-driven genres ''inspired by TikTok'' such as:

:* '''''Stomp and Holler'''''

:*'''''Stomp and Holler'''''

:* '''''Escape Room'''''

:*'''''Escape Room'''''

:* '''''pov: indie'''''

:*'''''pov: indie'''''

----

=== Systemic Exploitation ===

===Systemic Exploitation===

:Despite recent profitability, Spotify relies heavily on price hikes, algorithmic manipulation and royalty suppression. These anti consumer practices come out of a profit-driven business model which prioritizes labels and shareholders over artists and listeners. The PFC program epitomizes Spotify's continued fight agianst musicians. Regulatory intervention—like the EU's antitrust actions—remains critical to force transparency and fairness.

~~: Despite recent profitability, Spotify relies heavily on price hikes, algorithmic manipulation and royalty suppression. These anti consumer practices come out of a profit~~-driven business model which prioritizes labels and shareholders over artists and listeners. The PFC program epitomizes Spotify's continued fight agianst musicians. Regulatory intervention—like the EU's antitrust actions—remains critical to force transparency and fairness.

----

===Car Thing===

@@ Line 16: / Line 16: @@
 ==Summary of anti-consumer practices==
-----
 ===Micro Payments per Stream===
-* Label Retained Royalties:
+*Label Retained Royalties:
-:: Spotify pays artists between $0.003 and $0.005 per stream, requiring approximately 4 million monthly streams to earn $1,160, which is equal to a month of the  U.S. minimum wage. High profile artists like Taylor Swift and Thom Yorke withdrew music in protest.
+::Spotify pays artists between $0.003 and $0.005 per stream, requiring approximately 4 million monthly streams to earn $1,160, which is equal to a month of the  U.S. minimum wage. High profile artists like Taylor Swift and Thom Yorke withdrew music in protest.
-* Policy Changes Harming Indies:
+*Policy Changes Harming Indies:
-:: 70% of Spotify’s revenue goes to rights holders (e.g., record labels), but artists receive only 11% to 16% after the labels take their cuts. For example, Universal Music kept 73% of Spotify payouts.<sup>1</sup><sup>3</sup>
+::70% of Spotify’s revenue goes to rights holders (e.g., record labels), but artists receive only 11% to 16% after the labels take their cuts. For example, Universal Music kept 73% of Spotify payouts.<ref name=":1">{{Cite web |title=Criticism of Spotify |url=https://en.wikipedia.org/wiki/Criticism_of_Spotify |website=Wikipedia}}</ref><ref name=":2">{{Cite web |title=The truth about Spotify |url=https://www.honest-broker.com/p/the-ugly-truth-about-spotify-is-finally}}</ref>
-:: Spotify stopped paying royalties in 2023 for tracks with less than 1,000 annual streams, and diverted the approximately $40 million per year to major labels. This disproportionately impacted emerging artists.<sup>3</sup>
+::Spotify stopped paying royalties in 2023 for tracks with less than 1,000 annual streams, and diverted the approximately $40 million per year to major labels. This disproportionately impacted emerging artists.
 ===Fake Artists and Playlist Manipulation===
-* Perfect Fit Content (PFC) Program:
+*Perfect Fit Content (PFC) Program:
-:: An internal initiative to seed playlists with AI generated or low cost music (''e.g., ambient, jazz'') from Swedish producers. These tracks replaced human artists to reduce royalty payouts.<sup>2</sup>
+::An internal initiative to seed playlists with AI generated or low cost music (''e.g., ambient, jazz'') from Swedish producers. These tracks replaced human artists to reduce royalty payouts.<ref name=":2" />
-* Fake Artist Networks:
+*Fake Artist Networks:
-:: Investigators found 20 individuals operating under 500 aliases (''e.g., Trumpet Bumblefig, Vattio Bud'') generating millions of streams. One obscure Swedish jazz artist outperformed Grammy winning albums.<sup>2</sup>
+::Investigators found 20 individuals operating under 500 aliases (''e.g., Trumpet Bumblefig, Vattio Bud'') generating millions of streams. One obscure Swedish jazz artist outperformed Grammy winning albums.<ref name=":2" />
-* Consumer Deception:
+*Consumer Deception:
-:: Employees admitted listeners <q>wouldn’t know the difference</q> between authentic and PFC tracks, degrading content quality.<sup>2</sup>
+::Employees admitted listeners <q>wouldn’t know the difference</q> between authentic and PFC tracks, degrading content quality.<ref name=":2" />
 ===Licensing Violations and Legal Battles===
-* Unpaid Royalties:
+*Unpaid Royalties:
-:: In 2017 Spotify faced a $1.6 billion lawsuit from Wixen Music Publishing for hosting 10,000+ unlicensed songs by artists like Tom Petty and Neil Young.<sup>4</sup>
+::In 2017 Spotify faced a $1.6 billion lawsuit from Wixen Music Publishing for hosting 10,000+ unlicensed songs by artists like Tom Petty and Neil Young.<ref name=":3">{{Cite web |title=Spotify Under Fire |url=https://www.recordingacademy.com/advocacy/news/spotify-under-fire-failing-properly-license-music--again |website=Recording Academy}}</ref>
-* Repeated Non Compliance:
+*Repeated Non Compliance:
-:: Despite a 2015 pledge to fix <q>bad publishing data</q> Spotify’s $43 million settlement (2017) for unpaid mechanical licenses was deemed "inadequate" by industry groups.<sup>4</sup>
+::Despite a 2015 pledge to fix <q>bad publishing data</q> Spotify’s $43 million settlement (2017) for unpaid mechanical licenses was deemed "inadequate" by industry groups.<ref name=":3" />
-* Bundling Schemes:
+*Bundling Schemes:
-:: The National Music Publishers Association (NMPA) condemned Spotify for bundling music with audiobooks to lower royalty rates, calling it "predatory".<sup>3</sup>
+::The National Music Publishers Association (NMPA) condemned Spotify for bundling music with audiobooks to lower royalty rates, calling it "predatory".
 ===Privacy Violations and Data Misuse===
-* Invasive Data Collection:
+*Invasive Data Collection:
-:: In 2015, Spotify demanded access to users’ contacts, photos, and location via mobile apps, triggering backlash over disproportionate data harvesting.<sup>8</sup>
+::In 2015, Spotify demanded access to users’ contacts, photos, and location via mobile apps, triggering backlash over disproportionate data harvesting.
-* Pay-for-Play Allegations:
+*Pay-for-Play Allegations:
-:: Spotify was accused of taking payments from labels to prioritize songs in playlists, mimicking payola scandals without transparency.<sup>1</sup>
+::Spotify was accused of taking payments from labels to prioritize songs in playlists, mimicking payola scandals without transparency.<ref name=":1" />
 ===Price Hikes and Subscription Exploitation===
-* Forced Price Increases:
+*Forced Price Increases:
-:: Under pressure from record labels (''e.g., Universal Music''), Spotify raised U.S. prices by 31% for duo plans and 25% for family plans (2023–2024). Similar hikes occurred in 50+ markets. <sup>3</sup><sup>8</sup>
+::Under pressure from record labels (''e.g., Universal Music''), Spotify raised U.S. prices by 31% for duo plans and 25% for family plans (2023–2024). Similar hikes occurred in 50+ markets.
-* Label Profit Extraction:
+*Label Profit Extraction:
-:: Labels pushed hikes under the guise of "artist fairness," yet retained most revenue. For example, Universal’s streaming revenue grew 8.9% YoY in 2024.<sup>3</sup>
+::Labels pushed hikes under the guise of "artist fairness," yet retained most revenue. For example, Universal’s streaming revenue grew 8.9% year-over-year in 2024.
-{| class="wikitable"cellpadding="5"border="3, solid, gray"
+{| class="wikitable" cellpadding="5" border="3, solid, gray"
 |-
 |+Spotify Subcription Price Increase (2023-2024)
 |-
-! scope="col"style="text-align:left;" | Plan Type
+! scope="col" style="text-align:left;" |Plan Type
-! scope="col"style="text-align:center;" | Price Increase
+! scope="col" style="text-align:center;" |Price Increase
-! scope="col"style="text-align:right;" | Key Markets Affected
+! scope="col" style="text-align:right;" |Key Markets Affected
 |-
-! scope="row"style="text-align:left;" | Premium Individual
+! scope="row" style="text-align:left;" |Premium Individual
-! style="text-align:center;" | 10%
+! style="text-align:center;" |10%
-! style="text-align:right;" | USA UK EU
+! style="text-align:right;" |USA UK EU
 |-
-! scope="row"style="text-align:left;" | Premium Duo
+! scope="row" style="text-align:left;" |Premium Duo
-! style="text-align:center;" | 31%
+! style="text-align:center;" |31%
-! style="text-align:right;" | Global
+! style="text-align:right;" |Global
 |-
-! scope="row"style="text-align:left;" | Premium Family
+! scope="row" style="text-align:left;" |Premium Family
-! style="text-align:center;" | 25%
+! style="text-align:center;" |25%
-! style="text-align:right;" | 50+ countries
+! style="text-align:right;" |50+ countries
 |-
-! scope="row"style="text-align:left;" | Student
+! scope="row" style="text-align:left;" |Student
-! style="text-align:center;" | 20%
+! style="text-align:center;" |20%
-! style="text-align:right;" | USA Australia
+! style="text-align:right;" |USA Australia
 |}
@@ Line 107: / Line 105: @@
 ===Genre Manipulation and Cultural Appropriation===
-: Spotify invented vague algorithm-driven genres ''inspired by TikTok'' such as:
+:Spotify invented vague algorithm-driven genres ''inspired by TikTok'' such as:
-:* '''''Stomp and Holler'''''
+:*'''''Stomp and Holler'''''
-:* '''''Escape Room'''''
+:*'''''Escape Room'''''
-:* '''''pov: indie'''''
+:*'''''pov: indie'''''
 ----
-=== Systemic Exploitation ===
+===Systemic Exploitation===
+:Despite recent profitability, Spotify relies heavily on price hikes, algorithmic manipulation and royalty suppression. These anti consumer practices come out of a profit-driven business model which prioritizes labels and shareholders over artists and listeners. The PFC program epitomizes Spotify's continued fight agianst musicians. Regulatory intervention—like the EU's antitrust actions—remains critical to force transparency and fairness.
-: Despite recent profitability, Spotify relies heavily on price hikes, algorithmic manipulation and royalty suppression. These anti consumer practices come out of a profit-driven business model which prioritizes labels and shareholders over artists and listeners. The PFC program epitomizes Spotify's continued fight agianst musicians. Regulatory intervention—like the EU's antitrust actions—remains critical to force transparency and fairness.
+----
 ===Car Thing===