Spotify’s New Feature Could Force Artist To Be Paid Less

A Lower Royalty Rate

Spotify has allowed music lovers to listen to their favorite songs anytime, anywhere. However, it has attracted controversy numerous times for not paying the artists enough. The company launched a pilot project last year called the Discovery Mode and The House of Representatives’ Judiciary Committee has plenty of questions about it.

The Congress sent a letter to Spotify and asked for additional information on their now-controversial program. With the Discovery Mode, artists and labels can recommend songs to more listeners and therefore improve the track’s rankings in Spotify’s algorithms, but that’s in exchange for a smaller cut of royalties.

House Judiciary Committee Chairman Rep. Jerry Nadler and Rep. Hank Johnson Jr. wrote in the letter that the Discovery Mode “may set in motion a ‘race to the bottom’ in which artists and labels feel compelled to accept lower royalties as a necessary way to break through an extremely crowded and competitive music environment.”

“Depending on how the program is implemented, there is a further concern that accepting lower rates for this boost in Spotify’s algorithm may not even guarantee more airplay if virtually all commercial artists are also doing the same,” they added.

Spotify is expected to respond by June 16.