The March 26 letter accuses the company of a lack of transparency for consumers in Discovery Mode as well. Discovery Mode makes it possible for independent artists at every level to reach new fans in a whole new way.” Philip Kaplan, CEO of independent distributor Distrokid, is among the executives and artists who praise the program on the company’s website, saying “Discovery Mode is a groundbreaking music marketing tool because it doesn’t require any upfront budget. On the whole, the response to Discovery Mode from our listeners and partners has been incredibly positive and we will continue to be transparent about how it is working.” We have been transparent about the use of Discovery Mode and the commercial considerations associated with it to our users and partners by publicly discussing this test in many forums and describing its use within the user experience. The company emphasizes that the program requires no up-front costs, although it is still a method whereby artists or labels pay for better placement, with hit-or-miss results.Ĭontacted by Variety, a Spotify spokesperson said: “Artist and label teams have told Spotify for years that they want more agency in reaching new listeners and driving meaningful connections on our platform – Discovery Mode, in its early phase, delivers just that. To be fair, the program is essentially no different from traditional brick-and-mortar promotional campaigns whereby record companies pay retailers for premium store-display placement for their CDs and vinyl and unlike those programs, Spotify is at least upfront about the advance-royalty-payment aspect of Discovery Mode. (D-GA) wrote to Ek requesting more information on the policy, voicing concerns that it “may set in motion a ‘race to the bottom’ in which artists and labels feel compelled to accept lower royalties as a necessary way to break through an extremely crowded and competitive music environment.” Jerry Nadler (D-NY) and Subcommittee on Courts, Intellectual Property, and the Internet Chairman Rep. Last July, House Judiciary Committee Chairman Rep.

“Without this transparency, you are asking artists to make a blind choice, and it represents a classic prisoner’s dilemma.” “We would ask that Spotify publish, on a monthly basis, the name of every track enrolled in the program and the royalty discount agreed upon,” the letter continues.

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