Daniel Ek, founder and CEO of music and podcast platform Spotify, announced his departure. This development follows recent artist backlash against the platform. However, this move appears unlikely to be enough to revive the artists who have withdrawn their music from Spotify.
The backlash stemmed from Daniel Ek’s funding of a defense industry technology company through his personal investment company. This was the final straw for many artists, including well-known bands such as Hotline TNT, Massive Attack, Godspeed You! Black Emperor, and Deerhoof.
Artists continue to boycott Spotify
While Daniel Ek is stepping down as CEO, he will maintain a strong presence at the company. Ek, who will serve as Chief Executive Officer in the new term, announced that the newly appointed co-CEOs will continue to report to him. This has been described by artists and independent record labels as a “window dressing.” Those who have withdrawn their music from the platform argue that this change does not change anything in the company’s fundamental operations or problematic policies, but is simply a move to manipulate public perception.
Artists’ problems with Spotify aren’t limited to Daniel Ek’s personal investments. A long-standing debate in the music industry has been the extremely low royalties Spotify pays artists. The platform is known to pay a nominal fee of approximately $0.003 per stream. Another factor fueling the backlash is allegations that the company has been further reducing artist royalties by including audiobooks in its music subscriptions in recent years.
It appears the real problem for artists is the platform’s business model, which prioritizes profit and shareholders over art and artists. As long as the company’s fundamental compensation policies and attitude toward artists remain unchanged, it doesn’t seem to matter who holds the CEO position. In this context, the current boycott isn’t expected to end anytime soon.
So, what are your thoughts on this? Do you find the artists’ reaction justified, and which platform do you prefer for listening to music?
