Members of Congress are once again taking aim at Spotify’s controversial Discovery Mode feature, which allows artists and labels to receive a lower royalty rate on select tracks in exchange for higher priority in the platform’s algorithms. In a letter obtained by Billboard, dated March 29, 2022 and addressed to Spotify founder, CEO and chairman Daniel Ek, Reps. Yvette D. Clarke (D-NY), Judy Chu (D-CA) and Tony Cardenas (D-CA) – co-chairs of the Congressional Caucus on Multicultural Media – express concerns that Discovery Mode “lacks transparency” for both artists and consumers and ask the company to publish “on a monthly basis the name of every track enrolled in the program” and the agreed-upon discounted royalty rate for each. Variety first reported on the letter. “Choosing to accept...
This is an opinion column. The thoughts and viewpoints expressed are those of the author, Richard James Burgess. Burgess, who is credited for coining the music genre terms “EDM” and “New Romantic,” is the CEO of the American Association of Independent Music (A2IM). On its face, Spotify’s Discovery Mode might seem like a boon for some artists. Agree to accept a reduced royalty rate and the platform’s algorithms will suggest that artist’s music to more users—in hopes of expanding their base of listeners. But the scheme will most likely generate more profit for Spotify while hurting the very people Discovery Mode is alleged to benefit: artists and listeners. Spotify’s Broken Promise to Listeners When Spotify launched, its premise was an exci...