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Fake bands, real weapons: How Spotify is fuelling the arms race

6 snips
Jul 10, 2025
In this conversation, Liz Pelly, author of 'Mood Machine: The Rise of Spotify and the Costs of the Perfect Playlist,' discusses Spotify’s surprising ties to the defense industry, including its founder's extensive investments in military AI technology. She highlights how these choices affect both artists and listeners. Pelly also dives into the challenges posed by generative AI, emphasizing its impact on copyright and fair pay for musicians. Additionally, she advocates for supporting independent artists directly to break free from the streaming paradigm.
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INSIGHT

Spotify's Founder Ties to Defense

  • Daniel Ek's investments have tied Spotify closely to the military defense industry.
  • Spotify's leadership and business approach have expanded beyond music into defense technology and AI military applications.
INSIGHT

Spotify's Secret Military Ties and the Rise of AI Fake Bands

Daniel Ek, Spotify's founder, has invested over $1 billion in AI military technology, becoming deeply embedded in the global defense industry. Spotify itself employs AI strategies that many artists feel undermine their creative work, including the use of "perfect fit content"—internally produced music designed to minimize royalty payouts.

The platform has also seen the rise of entirely AI-generated bands like The Velvet Sundown, which have amassed large followings despite none of the members being real. This raises concerns about how generative AI could undercut musicians' labor and how such AI music often goes unlabeled on streaming services.

Artists and fans are pushing back by advocating for transparency, better compensation models like user-centric payment, and buying music directly from artists instead of relying on streaming platforms tied to questionable practices.

ANECDOTE

Fake Artists Fund Cost Savings

  • Spotify used to fill playlists with music from 'fake' artists to reduce royalty payouts.
  • They internally called these commissions 'perfect fit content' to optimize costs and playlist moods.
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