nme.com
41%
180
Spotify’s Discovery Mode feature faces renewed criticism by US Congress
Spotify is facing renewed criticism from US Congress over its Discovery Mode feature, which allows artists to receive additional exposure for a reduced royalty rate.Three Congress members – Yvette D. Clarke, Judy Chu and Tony Cardenas, who represent the Congressional Caucus on Multicultural Media, have sent a letter to Spotify CEO Daniel Ek criticising the feature.In exchange for a boost in visibility, artists and their labels agree to receive a “promotional” royalty rate on those streams, believed to be lower than the standard rate through the feature, which was announced in November 2020.Highlighting this issue, the letter said via Variety: “Choosing to accept reduced royalty payments is a serious risk for musicians, who would only benefit if Discovery Mode yields more total streams for an artist across their entire catalogue, not just the track covered by the program.”“And if two competing artists both enroll their newest track in the program, any benefit could be cancelled out, meaning that the only profit goes to your company’s bottom line.