The New Music Business with Ari Herstand Spotify Commissioned Cheap "Fake Artists" And She's Got the Proof
Feb 12, 2025
Liz Pelly, a prominent music journalist and author of "Mood Machine," dives deep into Spotify's controversial strategies. She reveals how Spotify's Perfect Fit Content program utilizes ghost artists, undermining real musicians and affecting the integrity of the music industry. Liz discusses the financial implications for artists and the discrepancies in royalty distribution, especially between independent creators and major labels. Their conversation highlights the urgent need for transparency and a revaluation of music's worth in the streaming era.
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Fake Artist Alert
- Liz Pelly was alerted to the "fake artist" phenomenon on Spotify early in her research.
- Initially, she dismissed it as DIY hustlers or simple connections between Swedish curators and Epidemic Sound.
PFC Program Revealed
- Spotify uses a program called "Perfect Fit Content" (PFC) to populate playlists with cheaper music.
- Production companies like Firefly and Epidemic Sound license music at lower costs, impacting musician earnings.
Spotify Royalty System
- Spotify's royalty payments are based on a complex "pro rata" system, not a fixed per-stream rate.
- Rights holders receive a share of the royalty pool based on their stream share, incentivizing growth.
