Liz Pelly on Spotify and the ‘Cost of the Perfect Playlist’
Jan 28, 2025
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Liz Pelly, a journalist and contributing editor at The Baffler, dives into the intricacies of Spotify's impact on musicians and the music industry. She critiques how Spotify, once seen as a democratizing platform, now favors major labels and algorithm-driven playlists while underpaying independent artists. Through insights from industry veterans and her book, 'Mood Machine,' Pelly discusses the rise of 'ghost artists' and the need for alternative models to support authentic music creation, challenging listeners to rethink their consumption habits.
Liz Pelly highlights how Spotify has shifted from a democratic platform to one that favors major labels and algorithm-driven playlists, undermining independent artist compensation.
The rise of 'ghost artists' on Spotify illustrates the ethical dilemmas of music authenticity and the exploitation of artists in the streaming era.
Deep dives
The Evolution of Spotify's Model
Spotify was initially marketed as a democratic platform aimed at leveling the playing field for music fans and artists. However, journalist Liz Pelley reveals that it has shifted to favor major record labels and algorithm-driven playlists, undermining its original promise. By signing exclusive deals with major labels to secure content, Spotify has created a system that limits independent artists' visibility and revenue opportunities, producing an ecosystem that is biased towards the interests of larger entities. The transition from a user-centered experience to a more curated, algorithmic approach has significantly altered the relationship artists and listeners have with music.
Impact on Independent Artists
Independent artists face significant challenges due to Spotify's payment structure, which often results in minimal compensation for streams. Pelley notes that while major labels enjoy substantial contracts and privileges, independent musicians often struggle to earn enough from streaming to sustain their careers. This has led to practices akin to 'pay-to-play,' where artists accept lower royalties in exchange for algorithmic promotion, leaving many feeling exploited and inadequately rewarded for their work. The conversation surrounding fairness highlights the continuing struggle for independent musicians in today’s streaming landscape.
Shift Towards Algorithmic Curation
The podcast discusses Spotify's shift from a search-focused platform to one dominated by algorithmic recommendations and curated playlists. This change was largely driven by user behavior, indicating that listeners preferred mood-based playlists over traditional music libraries. By adopting this model, Spotify seeks to increase user engagement by providing tailored music experiences, often at the cost of exposure to a wider variety of artists. This reliance on algorithmic curation reinforces repetitive listening patterns, often limiting the diversity of music that reaches listeners.
The Concept of Ghost Artists
Emerging practices within the platform have led to the phenomenon of 'ghost artists'—tracks credited to fake or little-known artists, often created to populate Spotify's mood playlists at lower costs. This practice raises questions about authenticity and the ethical implications of music consumption in the age of streaming. Reports indicate that a small group of songwriters produce large quantities of music under various monikers, flooding playlists while remaining concealed from listeners. Such arrangements blur the lines between artistic expression and commercial exploitation, highlighting ongoing concerns over the streaming industry’s practices.
Spotify was originally marketed as a democratic, anti-establishment music streaming platform. But according to journalist Liz Pelly, it has become a system favoring major labels and its own algorithmic playlists featuring “ghost artists,” all while underpaying independent artists. Pelly draws on interviews with former employees, music industry veterans and artists to pull back the curtain on the music streaming giant in her new book, “Mood Machine: The Rise of Spotify and the Cost of the Perfect Playlist.”
Guests:
Liz Pelly, writer; contributing editor to The Baffler
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