“Discovery Mode” offered by music app for new artists under investigation.
The House Judiciary Committee has written to the CEO of Spotify regarding the “promotional royalty rate” offered by the popular music app for its Discovery Mode. The cut rate is offered in exchange for boosting new musicians’ visibility on playlist algorithms.
Representative Jerrold Nadler, Chair of the House Judiciary Committee, and Representative Hank Johnson, Chair of the Subcommittee on Courts, Intellectual Property, and the Internet, expressed their concern over the already low royalty rate being reduce further, writing that the policy “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.”
They continued, “At a time when the global pandemic has devastated incomes for musicians and other performers, without a clear path back to pre-pandemic levels, any plan that could ultimately lead to further cut pay for working artists and ultimately potentially less consumer choice raises significant policy issues.”
As the Lord Leads, Pray with Us…
- For God to give the House Judiciary Committee wisdom as they probe unjust policies.
- For U.S. government officials who seek to protect Americans from predatory practices by companies.
- That the Lord would guide Congress into the most important areas to investigate in the future.
Sources: Bloomberg, Rolling Stone, Pitchfork
