There has been a ton written on the evils of Spotify and streaming in general. The focus, for the most part, is about how and how much the artists get paid. This article from The Baffler takes a deep dive into what it sees as the issues right now.
The music world continues to be exceedingly vulnerable, and there are looming questions that desperately need to be addressed. Most important: How can artists distribute and sell their work in a digital economy beholden to ruthlessly commercial and centralized interests?
Enter Spotify, a platform that is definitely not the answer. In fact, it only exacerbates such conundrums. Yet for now it has manipulated the vast majority of music industry “players” into regarding it as a saving grace. As the world’s largest streaming music company, its network of paying subscribers has risen sharply in recent years, from five million paid subscribers in 2012 to more than sixty million in 2017. Indeed, the platform has now convinced a critical mass that paying $9.99 per month for access to thirty million songs is a solid, even virtuous idea. Every song in the world for less than your shitty airport meal. What could go wrong?
Billionaires have thrown a lot of money at Spotify. As of September 2017, the platform has been valued at $16 billion by venture capitalists who see it as the next Netflix, and who have perhaps fooled themselves into trusting that this exploitative model will “save the music industry.” Spotify’s endgame, for now, is to go public. The company could be worth $20 billion by next year, when it will likely be listed on the New York Stock Exchange. According to Reuters, Spotify plans to file its intention of a public offering with U.S. regulators before the end of this calendar year and to go public in the first or second quarter of 2018. Bloomberg reports that it recently hired Goldman Sachs Group Inc., Morgan Stanley, and Allen & Co. to “assess its options.”
So what could wrong with the over-automation of curation?
Yet, despite its conventional market viability, there are key differences between Spotify and its rivals, Apple Music and Amazon Music, which both have the luxury of capitalizing on overpriced, fun-sized plastic and metal surveillance machines. For Apple Music, the bottom line is selling iPhones, laptops, iPads, and other hardware. Streaming music makes those products more valuable. For Amazon Music, the motive is similar; they aim to sell Alexa devices and Amazon Prime subscriptions.
But Spotify’s worth is more ephemeral. Its value—what makes it addictive for listeners, a necessity for artists, and a worthwhile investment for venture capitalists—lies in its algorithmic music discovery “products” and its ability to make the entire music industry conform to the new standards it sets. This means one thing: playlists are king, and particularly the ones curated by Spotify itself. An unprecedented amount of data (“skip rates” and “completion rates” determine whether a song survives) and “human-machine technology” are deployed to quantify your tastes. This is what lies behind the “magic” of Spotify.
It’s a fascinating read. Head over to The Baffler for the whole discussion.