It’s Not “Premium,” but It Sure Ain’t Free: Spotify’s Bait and Switch on Podcast Advertising

Unlike the censorious Apple, Spotify has held on to its “free” ad-supported service and is very much in the advertising business. (I’ve always suspected that the only reason Spotify has shown any interest in credits or lyrics is that those text renderings are also known as advertising keywords.)

But Spotify appears to be disrupting truth in its own advertising according to the Independent. Spotify “announced on 21 January that it would be bringing Spotify Podcast Ads to the UK for all users – meaning Premium subscribers who paid to avoid adverts will still have to listen to promotional content….The ads are only available on podcasts that Spotify produces itself, so it will receive money both from subscription fees and company ads.”

In the UK, false advertising is regulated by the Advertising Standards Authority, the industry-controlled “regulatory” authority. According to the Independent, “If anyone has concerns that Spotify is making a misleading advertising claim about ‘no ad interruptions’, whether the claim is on its website, in app or elsewhere, we encourage them to contact us and we’ll assess the matter further”, the Advertising Standards Authority (ASA) told The Independent.” The complaint webform is here.

US users can complain to the Federal Trade Commission and their webform is here.

@volumecontrol10: Streamlining the Streaming Regime: Of rat kings and royalties in the streaming age

After a decade in which it seemed like illegal downloading had made it all but impossible for record companies to eke out a profit, recent years have seen things improve for the music industry. The rise of streaming services like Spotify have helped restore the major labels—now fused into three massive conglomerates—to their nineties-era wealth, with untold riches beckoning on the horizon. Despite this, the situation for musicians has never been grimmer. Streaming has failed to match the income that artists once garnered from album sales. Constant touring has replaced some of this, but for many, especially older performers, it can’t make up the gap.

While musicians struggle to bring attention to these untenable conditions, the industry’s C-suite has focused their efforts elsewhere. As firms like Spotify and Pandora glided to multi-billion-dollar valuations, hailed in the press as “saviors” of the industry, they failed to pay for all of the intellectual property on which their products were based. This gave rise to a slate of expensive and potentially destabilizing litigation that threatened such companies—and the major labels’ projected earnings. Faced with these pressing concerns, record label executives, music publishers, tech moguls, and telecommunication lobbyists came together to create legislation to address what they perceived to be the pitfalls of music’s new digital economy.

Read the post on The Baffler

Spotify’s Got Another Artist Relations Issue: Joe Rogan

Remember when Spotify bought Joe Rogan’s podcast and signed him to deliver futures? Big money, big press release. Big chuckles in some quarters, why? Welcome to the world of artist relations, Mr. Ek.

Here’s a suggestion. When you sign an artist who you know is controversial going in, expect…you know…controversy. Is that really so hard to figure out? And understand that whatever that artist does, their brand is potentially going to be wrapped around your brand.

In Spotify’s case, there are plenty of controversial recording artists who have been distributed by Spotify. None of that has blown back on Spotify. In Joe Rogan’s case, however, Spotify is essentially the label. Remember all that guff from Daniel Ek about middlemen and gatekeepers? Well, guess what? Spotify is ostensibly Joe Rogan’s gatekeeper, but nobody told Joe Rogan. Which is problem #1 for Daniel Ek.

I seriously doubt that Mr. Rogan gives a hoot what Mr. Ek or any of his employees think of Mr. Rogan. I’m not a listener, so I have no idea how genuine the outrage is, but even if it is the most genuine outrage, Daniel Ek signed up for this. Daniel Ek paid lots of the shareholders’ money for this. Daniel Ek has the company’s governance structure rigged so he’s both president for life and also controls the board. Which is problem #2 for Daniel Ek–he brought this on himself.

So here’s a little unsolicited advice. When your artist comes to you with a recording that you simply cannot bring yourself to release, what you don’t do is tell them to change it. What you don’t do is censor them. That is, as we say in the trade, a chickenshit move. And I don’t care which or how many employees are offended.

What you do is you offer the artist one of two options, both of which are financially painful but ethically healing. First, you have a frank conversation with the artist where you explain that you are not putting out their record but you respect their right to say what they want to say. And if you don’t actually believe that, then you are in the wrong business and you have problem #3.

Then you tell the artist, I will let you go and you don’t owe me anything. This is the clean break option.

If the artist doesn’t want to leave–and notice that money has not come into the conversation and isn’t going to–you tell them they are free to take the record somewhere else and Godspeed and you’ll work with them on their next record. You want nothing more than to preserve your relationship with the artist whether on or off the label. You should want this because if you thought highly enough of them to sign them in the first place, and if they thought highly enough of you to sign with you in the first place, then that relationship is what matters, not the cash.

The cash is rarely significant and soon will be forgotten…well, you’ll definitely take grief from the bean counters, but screw them. What people remember is how you conducted yourself in the situation. That’s what matters.

And that is what seems to be lost on Mr. Ek. Be honest–are you surprised?

@Lucas_Shaw: Spotify Loses Joe Budden, Company’s First Big Podcasting Star

Budden says Spotify used him as a guinea pig for this larger strategy, and accused the company of not supporting him. “Spotify never cared about this podcast individually,” he said on his latest podcast. “Spotify only cared about our contribution to the platform.”

Read the post on Bloomberg