A groundbreaking investigation has exposed Spotify's secret program of promoting artificial artists and manipulating playlists to boost profits, raising serious ethical concerns about the streaming giant's practices.
According to an extensive investigation by journalist Liz Pelly published in Harper's magazine, Spotify operates what it internally calls the "Perfect Fit Content" (PFC) program - a calculated strategy to populate playlists with low-cost music from a network of production companies, particularly targeting genres like jazz, ambient, classical, and lo-fi beats.
The investigation revealed that many mysterious artists appearing on Spotify's playlists trace back to Sweden, where Spotify is headquartered. Reports suggest that as many as 500 different artist names may be controlled by just 20 individuals. These artists often generate unusually high streaming numbers despite being virtually unknown.
In one striking example, listeners discovered identical tracks being recycled under different artist names and song titles that appeared computer-generated, such as "Trumpet Bumblefig" and "Whomping Clover." The practice allows Spotify to reduce royalty payments while maintaining control over popular playlists.
Former Spotify employees disclosed to Pelly that when concerns were raised internally about these practices, management dismissed them by claiming "listeners wouldn't know the difference." Musicians participating in the PFC program reportedly must surrender certain royalty rights that could be highly valuable if tracks become successful.
While Spotify's profitability has soared - with CEO Daniel Ek selling over $348 million worth of shares in recent months - the revelations raise troubling questions about fair compensation for artists and transparency in music streaming.
Industry experts are now calling for congressional investigations into streaming platforms' ethical practices, similar to the 1950s payola investigations in radio. There are growing demands for legislation requiring full transparency and preventing streaming services from promoting music based on financial incentives rather than artistic merit.
The findings highlight an urgent need for reform in music streaming and stronger oversight to protect both artists and listeners from manipulative practices that prioritize corporate profits over musical integrity.