Spotify has faced criticism from artists over issues such as audio quality and low payouts. Recently, the company has come under fire for CEO Daniel Ek’s financial support of a German defense company, which has led some musicians, including Hotline TNT and Massive Attack, to remove their music from the platform.
On a recent Tuesday, Ek announced he would step down as CEO but would remain the executive chairman, leaving many questioning whether this change will address the artists’ grievances. In his new role, he reported that the incoming co-CEOs would still report to him, implying a continuity of influence over the company’s direction. Artists have indicated that they do not expect this leadership change to alter their stance toward Spotify, citing deep-rooted concerns that go beyond Ek’s recent actions.
Concerns regarding Spotify’s compensation model persist, as it has been noted that artist payments remain below industry standards, with payouts between $0.003 and $0.005 per stream. Significant figures in the music world have previously withdrawn their music from the platform due to these payout structures, although some returned. The company has also drawn attention by bundling audio content with its premium subscription service, leading to a further decrease in royalty payments.
In light of these issues, artists have suggested they may continue to leave the platform. Several have expressed skepticism that any positive changes are forthcoming under the current corporate structure, with ongoing calls for fairer treatment of artists and better payment practices. The level of discontent within the artist community raises questions about the long-term viability of Spotify’s business model in its current form.
Source: https://www.theverge.com/report/791593/daniel-ek-stepping-down-changes-nothing-for-artists-boycotting-spotify