The Financial Interplay Between Spotify and Record Labels

After file-sharing decimated the music industry in the late 1990's, tech platforms, and music publishers spent years finding a profitable solution to the problem of free music. Spotify was the result. 

For investors and major labels, Spotify was a triumph: it revitalized the business of recorded music, and accommodated a public that had grown used to having instant, on-demand access. But for artists and smaller labels, it has only exacerbated the problem of making a living. 

Today on the show, Matt and David talk to Liz Pelly, author of the new book Mood Machine: The Rise Of Spotify And The Cost Of The Perfect Playlist, to find out how the dominant platform in music streaming was founded, how its algorithmically driven recommendation system flattens musical taste, and how its "payola-like" activities skirt the regulations that governed terrestrial radio for decades. 

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