In a detailed analysis by Liz Pelly published in Harper's, the ongoing issues surrounding Spotify's practices and their impact on independent musicians are explored. The article highlights Spotify's alleged use of ghost artists to populate playlists with low-cost music, which has significant implications for the royalties of independent musicians. This phenomenon, first noted in 2017, has evolved with Spotify's Perfect Fit Content (PFC) program, which aims for profitability by prioritizing cheaper tracks over original content. By 2023, it was reported that over 150 playlists were dominated by PFC music, raising concerns about the quality and authenticity of the music being promoted on the platform.
The dominance of major labels like Sony, Universal, and Warner, which control approximately 70% of the market, exacerbates the situation for independent artists. Additionally, Epidemic Sound, a key player in the low-cost music sector, raised $450 million in 2021, further illustrating the financial pressures on independent musicians. The article raises ethical concerns about the future of music, particularly with the increasing role of AI-generated music in the industry, and questions the sustainability of a model that favors profitability over artistic integrity.
This analysis complements the ongoing feud between the music industry and Spotify over bundling, as detailed in a timeline provided by Billboard. The conflict began when Spotify started paying music publishers and songwriters a discounted royalty rate for streams on its premium tiers, resulting in significant financial losses for songwriters and publishers. The Mechanical Licensing Collective (the MLC) has filed lawsuits against Spotify, arguing that the premium tiers have been improperly characterized as bundles, and the NMPA has sent a cease and desist letter for allegedly hosting content without proper licenses. These developments highlight the broader challenges facing the music industry in the streaming era, where profitability often comes at the expense of artists' rights and earnings.
[Harper's](https://harpers.org/archive/2025/01/the-ghosts-in-the-machine-liz-pelly-spotify-musicians/)
[Billboard](https://www.billboard.com/lists/timeline-spotify-publishers-songwriters-bundling-feud/)