Spotify’s Use of Ghost Artists to Reduce Royalty Payments and Maximize Profits

News

Spotify’s Perfect Fit Content Program: A Closer Look at the Controversy

Spotify has positioned itself as a champion for artists and a democratizer of music, creating a platform where musicians and listeners seamlessly connect in a merit-based ecosystem. However, beneath this polished facade lies a troubling reality: the Perfect Fit Content (PFC) program, a secretive initiative detailed in Liz Pelly’s upcoming book, *Mood Machine: The Rise of Spotify and the Costs of the Perfect Playlist*, indicating that profit is prioritized above all else in Spotify’s playlisting system.

According to Pelly’s investigations in *Harper’s Magazine*, the PFC program is designed to embed low-cost, royalty-free tracks into Spotify’s most popular playlists centered around moods and activities. These tracks are produced by a network of “ghost artists” utilizing pseudonyms, commissioned with the aim of lowering Spotify’s royalty payouts to actual artists.

Launched in the 2010s, the PFC initiative has since infiltrated numerous Spotify playlists, as revealed by Pelly. Typically, the artists involved in these deals receive modest upfront payments, while Spotify and its partners retain all rights to the music, leading to significantly higher profits by promoting these ghost tracks on the platform.

The ramifications of this program extend beyond individual musicians who lose ownership of their work. Once celebrated as platforms for artistic discovery, playlists are now being used as cost-cutting tools, sidelining musicians striving to earn a livable income from their art in favor of disposable, low-cost content.

These revelations surrounding the PFC program resonate with previous controversies over Spotify’s “Discovery Mode,” where artists sacrifice royalty income for increased algorithmic visibility. Both initiatives exemplify Spotify’s readiness to manipulate its ecosystem in ways that benefit its financial interests at the expense of musicians.

“Spotify has long marketed itself as the ultimate platform for discovery—who is genuinely excited about ‘discovering’ stock music?” Pelly notes. “Artists were sold the concept that streaming is the highest form of meritocracy—that the best would naturally ascend because users vote with their listens. But the PFC program undermines this notion entirely.”

For a deeper understanding of these issues, you can read Pelly’s full report [here](https://harpers.org/archive/2025/01/the-ghosts-in-the-machine-liz-pelly-spotify-musicians/).
Source link

Leave a Reply

Your email address will not be published. Required fields are marked *