Spotify is the music platform on streaming with more subscribersaccording to Statista at the end of 2022, registered a total of 205 million subscribers, followed by Apple Music with 205 million; Tencent Music with 88.5 million and Amazon Music with 82.7 million subscribers. Annually it generates income of 11 million 727 thousand euros.
Thanks to these types of platforms, artists can generate their own songs in an easier way, specifically in the form of distribution and the reach that it may have, since they can use the marketing tools available on them. By comparison, before the digital age, performers relied on record labels to produce and promote their songs, often requiring large outlays.
Spotify is available in 184 countries, consolidating it as one of the main spaces where artists can make themselves known, since favorite tastes and genres are outlined through algorithms, increasing the numbers and earnings of those who generate content on it. According Rate Analitikthe platform generates income from two sources: subscription fees from listeners of Premium and music ad fees of the free version. About 70 percent of them are paid in the form of royalties to rights holders, who then pay artists and songwriters according to agreed terms.
These rights holders include record labels, publishers, independent distributors, copyright organizations, and collecting societies. Spotify doesn’t pay artists and songwriters directly. In 2022, 57 thousand artists generated more than 10 billion dollars. The platform has paid out more than $3 billion to publishers, copyright organizations, and collecting societies representing songwriters. Likewise, in the same year, 515 million monthly active users were registered on the platform, 22 percent more than the previous year and where 21 percent come from Latin America.
Spotify removes songs with AI
International media recently reported that Spotify is eliminating songs created with the help of Artificial Intelligence, this after the controversy that arose after the release of ‘Heart On My Sleeve’, which imitated the voices of rapper Drake and The Weeknd, which had to be downloaded, as happened with Apple Music. Another high-profile case was a composition made that imitated Frank Ocean.
Now him Swedish giant of streaming audio has taken this action after multiple complaints received for attempted fraud. As reported by El País, the brand defends the decision made, since they pointed out that this type of songs with AI is used as a trap to collect royalties on behalf of fraudulent accounts.
Spotify also detected suspicious activity in the songs of Boomy, a start up AI-based musical, which generates musical compositions without the artist’s intervention, for which it withdrew 7 percent from its platform; Universal Music was the one who alerted the industry, the Financial Times reported.
In the same way, the fraudulent business made by a community of music collectors on Discord was added, where participants heard songs that could have been leaked even before their official release. Vice managed to contact one of them, who confessed to selling leaked songs by composer Frank Ocean for around 9,000 euros.