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Spotify is the global music streaming service. It boasts having more than 626 million active users and controls more than 30% of the global streaming market. Spotify has single-handedly changed the way music is consumed by giving access to millions of songs at the touch of a button. Nonetheless, the debates about its effects on the listeners and artists keep becoming more and more worrisome over time.
The average payout per stream on Spotify is $0.004. Spotify’s payment system means that an artist would need one million streams in order to collect $4,000. When contrasted with Apple Music who pays nearly three times more per stream, it is clear how lopsided Spotify’s payout is. Most artists receive only a fraction of these earnings due to label agreements.
In April 2024 Spotify implemented a new policy requiring songs to reach 1,000 streams per year before earning any royalties. So while the measure does make it better for more popular streamers, it is detrimental to more independent artists. Spotify claims that this measure helps get rid of fraudulent accounts and reduces the ease with which someone can create a profile and get money solely through streams, but critics claim this measure severely limits the profit lesser-known artists can earn.
Spotify uses artificial intelligence to personalize listening. AI DJs, adaptive playlists — algorithms drive music recommendations. While these tools are great for user engagement, they are often feared as replacements for human curation in their respective fields. This has led to a feeling of being stuck in a repetitive cycle of algorithmic suggestions and recommendations preventing listeners from discovering new music.
Spotify sacked 17% of its workforce in 2023. It also raised fears that AI could take over human jobs. Users noted that the quality of Spotify Wrapped had dropped, enticing more criticism that AI-led services cannot match the human touch of human curators.
As streaming takes over, some music fans are reaching for CDs and vinyl. Physical sales meanwhile, are on the upswing with listeners craving a deeper connection to music. Services such as Bandcamp provide more significant compensation to indie artists and a transition from major streaming services is underway.
Spotify is still the king of digital music but its challenges are multiplying. There are ongoing debates around low artist payments, an overreliance on AI and less human interaction in music curation. With these issues drawing attention every other time, there might be change on the horizon for all the music streaming giants.
