Final fall, Spotify launched a brand new software for artists known as “Discovery Mode.” The function permits artists to decide right into a “promotional royalty price” for particular songs that’s lower than the usual price. In change, the songs will probably be boosted and given increased visibility on a few of listeners’ algorithmically generated playlists. Now, Congress has despatched a letter to Spotify demanding specs on the software, as The Hollywood Reporter factors out.
The letter, despatched by Home Judiciary Committee Chairman Rep. Jerry Nadler and Subcommittee on Courts, Mental Property, and the Web Chairman Rep. Hank Johnson Jr., is addressed to Spotify CEO Daniel Ek. It states issues over Discovery Mode making a “race to the underside” by which artists and labels settle for decrease pay as a way to “break via an especially crowded and aggressive music setting,” as Nadler and Johnson put it. You’ll find the complete letter through THR.
The letter factors out that Spotify’s royalty funds to artists are already low—lower than one cent per stream. “At a time when the worldwide pandemic has devastated incomes for musicians and different performers, and not using a clear path again to pre-pandemic ranges, any plan that might finally result in additional lower pay for working artists and finally probably much less shopper selection raises important coverage points,” Nadler and Johnson write.
Nadler and Johnson additionally record out a sequence of questions concerning Discovery Mode. They ask in regards to the meant period of the app’s new function, the way it calculates its lowered “promotional” royalty price, what sort of safeguards will probably be in place to make sure the “race to the underside” impact doesn’t happen, and extra. Spotify is anticipated to reply no later than June 16. Pitchfork has reached out to Spotify representatives for remark.
Learn “Could Spotify’s New Discovery Mode Be Considered Payola?” over on the Pitch.