Spotify is facing significant pushback from artists over various issues including low audio quality and inadequate payments. Recently, CEO Daniel Ek’s investment in a military technology firm intensified the backlash, prompting many artists to boycott the platform.
Leadership Change Does Not Affect Boycotts
On October 3, Ek announced his resignation as CEO, but he will remain the executive chairman. Neither Ek nor Spotify indicated that this move was in response to the negative sentiment. Artists like Will Anderson of Hotline TNT emphasize that their issues extend beyond Ek’s leadership.
Artists who have removed their music from Spotify expressed skepticism regarding any potential changes. Jeremy Leaird-Koch noted that an executive chairman still plays a vital role in company decisions, which means Ek’s influence persists despite the title change.
Ongoing Issues Artists Face
The main concern for artists is Spotify’s low payout rates, estimated at $0.003 to $0.005 per stream. This longstanding issue has led to withdrawals from the platform by notable musicians like Thom Yorke and Taylor Swift, although some returned later. For smaller artists, the payout is zero if streams are under 1,000 annually.
In 2024, Spotify’s introduction of audiobooks to its premium plan further diluted payouts, resulting in a $150 million drop in royalties, which only deepened distrust among artists about the company’s financial practices.
Artists Find Alternatives to Spotify
Many artists aim for fair compensation and respect from streaming services. Deerhoof’s vocalist stated they won’t return to Spotify unless conditions improve. Instances like Joanna Newsom’s absence on Spotify illustrate that successful careers can exist outside the platform.
Concerns about Spotify’s business practices, including ties to controversial investments, continue to lead artists to explore alternative avenues. While some believe that artist-led movements can impact change, skepticism remains prevalent regarding Spotify’s willingness to improve.
