How Spotify is Ruining Music: ‘It’s About How Power Works’
Feb 13, 2025
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In this conversation, journalist Liz Pelly, author of "Mood Machine," explores how Spotify has transformed the music industry. Liz reveals the unsettling truth about 'ghost artists' and the pressures real musicians face in an algorithm-driven world. They discuss how playlist culture has altered listening habits and the authenticity of music. The talk also delves into artist compensation and the rise of AI-generated content, raising vital questions about the future of creativity and the sustainability of artists' careers.
Spotify's algorithm-driven playlists have reshaped music consumption and artist careers, prompting pressures on musicians to compromise their artistry for visibility.
The rise of ghost artists highlights ethical concerns in the streaming ecosystem, questioning authenticity while illustrating the complexities of artist compensation.
Deep dives
Spotify's Rise and Playlist Culture
Spotify experienced significant growth since its inception in 2006, positioning itself as a major player in the music industry. Originally launched in Sweden, the platform leveraged the country's unique music piracy landscape to gain record label support. When Spotify entered the U.S. market in 2011, it shifted from merely offering a vast music library to creating a more personalized experience based on algorithmic recommendations. This transition led to the emergence of playlist culture, significantly altering how listeners engage with music and artists.
Impact of Ghost Artists and Pay-to-Play Dynamics
The phenomenon of ghost artists surfaced between 2016 and 2019, as many playlists allegedly featured musicians who did not exist. Reports revealed that a small number of songwriters were behind numerous anonymous artist monikers, raising questions about authenticity in streaming. As Spotify's algorithm prioritized playlist placements, many artists found themselves competing in a system that favored certain types of music, often leading to a 'pay to play' environment. This resulted in many musicians feeling pressured to compromise their artistry in exchange for visibility within the streaming ecosystem.
Challenges of the Discovery Mode
Discovery Mode was introduced with the intention of giving artists more control over which songs would be promoted through algorithmic recommendations. However, it required musicians to accept a reduced royalty rate for increased visibility, leading to accusations of a new kind of digital payola. Some artists and record labels reported that while they experienced boosts in streams, it raised ethical concerns about monetizing visibility in a way that undercuts musician compensation. This model further complicated the dynamics between artists, labels, and streaming platforms by blurring the lines of fair compensation.
The Long-term Effects of Streaming on Musicians
The shift to streaming fundamentally changed how musicians are compensated and how music is consumed. The per-stream payment model has significantly devalued music, leading to a complex web of contracts that many artists do not fully understand. This structure has created a challenging environment for musicians, with many feeling disempowered and unable to advocate for fairer payment due to non-transparent contracts. Moreover, as Spotify diversifies into podcasting and other content forms, the traditional dynamics of music consumption continue to be disrupted, leaving artists to navigate an increasingly strange landscape.
No platform has had more of impact on what we listen to over the past decade than Spotify. This week, Taylor is joined by journalist Liz Pelly, to discuss her new book "Mood Machine: The Rise of Spotify and the Costs of the Perfect Playlist."
They discuss the profound impact Spotify has had on the music industry, culture, and the way we consume sound.
Pelly reveals the truth about so-called "ghost artists" and other tactics the company has employed to squeeze artists and upend the content ecosystem.
They also dig into how Spotify's algorithm-driven playlists have reshaped not just listening habits but also the very nature of music production, artist careers, and industry power structures.
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