Saturday, December 21, 2024

The Ghosts in the Machine: Spotify's Plot Against Musicians

I first heard about ghost artists in the summer of 2017. At the time, I was new to the music-streaming beat. I had been researching the influence of major labels on Spotify playlists since the previous year, and my first report had just been published. Within a few days, the owner of an independent record label in New York dropped me a line to let me know about a mysterious phenomenon that was “in the air” and of growing concern to those in the indie music scene: Spotify, the rumor had it, was filling its most popular playlists with stock music attributed to pseudonymous musicians—variously called ghost or fake artists—presumably in an effort to reduce its royalty payouts. Some even speculated that Spotify might be making the tracks itself. At a time when playlists created by the company were becoming crucial sources of revenue for independent artists and labels, this was a troubling allegation.

At first, it sounded to me like a conspiracy theory. Surely, I thought, these artists were just DIY hustlers trying to game the system. But the tips kept coming. Over the next few months, I received more notes from readers, musicians, and label owners about the so-called fake-artist issue than about anything else. One digital strategist at an independent record label worried that the problem could soon grow more insidious. “So far it’s happening within a genre that mostly affects artists at labels like the one I work for, or Kranky, or Constellation,” the strategist said, referring to two long-running indie labels.* “But I doubt that it’ll be unique to our corner of the music world for long.”

By July, the story had burst into public view, after a Vulture article resurfaced a year-old item from the trade press claiming that Spotify was filling some of its popular and relaxing mood playlists—such as those for “jazz,” “chill,” and “peaceful piano” music—with cheap fake-artist offerings created by the company. A Spotify spokesperson, in turn, told the music press that these reports were “categorically untrue, full stop”: the company was not creating its own fake-artist tracks. But while Spotify may not have created them, it stopped short of denying that it had added them to its playlists. The spokesperson’s rebuttal only stoked the interest of the media, and by the end of the summer, articles on the matter appeared from NPR and the Guardian, among other outlets. Journalists scrutinized the music of some of the artists they suspected to be fake and speculated about how they had become so popular on Spotify. Before the year was out, the music writer David Turner had used analytics data to illustrate how Spotify’s “Ambient Chill” playlist had largely been wiped of well-known artists like Brian Eno, Bibio, and Jon Hopkins, whose music was replaced by tracks from Epidemic Sound, a Swedish company that offers a subscription-based library of production music—the kind of stock material often used in the background of advertisements, TV programs, and assorted video content.

For years, I referred to the names that would pop up on these playlists simply as “mystery viral artists.” Such artists often had millions of streams on Spotify and pride of place on the company’s own mood-themed playlists, which were compiled by a team of in-house curators. And they often had Spotify’s verified-artist badge. But they were clearly fake. Their “labels” were frequently listed as stock-music companies like Epidemic, and their profiles included generic, possibly AI-generated imagery, often with no artist biographies or links to websites. Google searches came up empty.

In the years following that initial salvo of negative press, other controversies served as useful distractions for Spotify: the company’s 2019 move into podcasting and eventual $250 million deal with Joe Rogan, for example, and its 2020 introduction of Discovery Mode, a program through which musicians or labels accept a lower royalty rate in exchange for algorithmic promotion. The fake-artist saga faded into the background, another of Spotify’s unresolved scandals as the company increasingly came under fire and musicians grew more emboldened to speak out against it with each passing year.

Then, in 2022, an investigation by the Swedish daily Dagens Nyheter revived the allegations. By comparing streaming data against documents retrieved from the Swedish copyright collection society STIM, the newspaper revealed that around twenty songwriters were behind the work of more than five hundred “artists,” and that thousands of their tracks were on Spotify and had been streamed millions of times.

Around this time, I decided to dig into the story of Spotify’s ghost artists in earnest, and the following summer, I made a visit to the DN offices in Sweden. The paper’s technology editor, Linus Larsson, showed me the Spotify page of an artist called Ekfat. Since 2019, a handful of tracks had been released under this moniker, mostly via the stock-music company Firefly Entertainment, and appeared on official Spotify playlists like “Lo-Fi House” and “Chill Instrumental Beats.” One of the tracks had more than three million streams; at the time of this writing, the number has surpassed four million. Larsson was amused by the elaborate artist bio, which he read aloud. It described Ekfat as a classically trained Icelandic beat maker who graduated from the “Reykjavik music conservatory,” joined the “legendary Smekkleysa Lo-Fi Rockers crew” in 2017, and released music only on limited-edition cassettes until 2019. “Completely made up,” Larsson said. “This is probably the most absurd example, because they really tried to make him into the coolest music producer that you can find.”

Besides the journalists at DN, no one in Sweden wanted to talk about the fake artists. In Stockholm, I visited the address listed for one of the ghost labels and knocked on the door—no luck. I met someone who knew a guy who maybe ran one of the production companies, but he didn’t want to talk. A local businessman would reveal only that he worked in the “functional music space,” and clammed up as soon as I told him about my investigation.

Even with the new reporting, there was still much missing from the bigger picture: Why, exactly, were the tracks getting added to these hugely popular Spotify playlists? We knew that the ghost artists were linked to certain production companies, and that those companies were pumping out an exorbitant number of tracks, but what was their relationship to Spotify?

For more than a year, I devoted myself to answering these questions. I spoke with former employees, reviewed internal Spotify records and company Slack messages, and interviewed and corresponded with numerous musicians. What I uncovered was an elaborate internal program. Spotify, I discovered, not only has partnerships with a web of production companies, which, as one former employee put it, provide Spotify with “music we benefited from financially,” but also a team of employees working to seed these tracks on playlists across the platform. In doing so, they are effectively working to grow the percentage of total streams of music that is cheaper for the platform. The program’s name: Perfect Fit Content (PFC). The PFC program raises troubling prospects for working musicians. Some face the possibility of losing out on crucial income by having their tracks passed over for playlist placement or replaced in favor of PFC; others, who record PFC music themselves, must often give up control of certain royalty rights that, if a track becomes popular, could be highly lucrative. But it also raises worrying questions for all of us who listen to music. It puts forth an image of a future in which—as streaming services push music further into the background, and normalize anonymous, low-cost playlist filler—the relationship between listener and artist might be severed completely. (...)

According to a source close to the company, Spotify’s own internal research showed that many users were not coming to the platform to listen to specific artists or albums; they just needed something to serve as a soundtrack for their days, like a study playlist or maybe a dinner soundtrack. In the lean-back listening environment that streaming had helped champion, listeners often weren’t even aware of what song or artist they were hearing. As a result, the thinking seemed to be: Why pay full-price royalties if users were only half listening? It was likely from this reasoning that the Perfect Fit Content program was created.

After at least a year of piloting, PFC was presented to Spotify editors in 2017 as one of the company’s new bets to achieve profitability. According to a former employee, just a few months later, a new column appeared on the dashboard editors used to monitor internal playlists. The dashboard was where editors could view various stats: plays, likes, skip rates, saves. And now, right at the top of the page, editors could see how successfully each playlist embraced “music commissioned to fit a certain playlist/mood with improved margins,” as PFC was described internally.

In a Slack channel dedicated to discussing the ethics of streaming, Spotify’s own employees debated the fairness of the PFC program. “I wonder how much these plays ‘steal’ from actual ’normal’ artists,” one employee asked. And yet as far as the public was concerned, the company had gone to great lengths to keep the initiative under wraps. Perhaps Spotify understood the stakes—that when it removed real classical, jazz, and ambient artists from popular playlists and replaced them with low-budget stock muzak, it was steamrolling real music cultures, actual traditions within which artists were trying to make a living. Or perhaps the company was aware that this project to cheapen music contradicted so many of the ideals upon which its brand had been built. Spotify had long marketed itself as the ultimate platform for discovery—and who was going to get excited about “discovering” a bunch of stock music? Artists had been sold the idea that streaming was the ultimate meritocracy—that the best would rise to the top because users voted by listening. But the PFC program undermined all this. PFC was not the only way in which Spotify deliberately and covertly manipulated programming to favor content that improved its margins, but it was the most immediately galling. Nor was the problem simply a matter of “authenticity” in music. It was a matter of survival for actual artists, of musicians having the ability to earn a living on one of the largest platforms for music. PFC was irrefutable proof that Spotify rigged its system against musicians who knew their worth.

by Liz Pelley, Harper's |  Read more:
Image: Yoshi Sodeoka