Spotify Royalty Collapse: AI and Fake Streams
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Spotify Royalty Collapse: AI and Fake Streams
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About this listen
The source, a transcript from the YouTube channel "Top Music Attorney," expresses conviction that Spotify's music royalty system is on the verge of collapse due to two primary issues. The first major concern is the proliferation of fraudulent streaming activities, specifically citing a class action lawsuit against Spotify that alleges the platform is knowingly allowing fake streams, including billions linked to Drake, which ultimately dilutes the royalty pool for independent artists. The second critical problem is the overwhelming influx of AI-generated music, with a competitor reporting 50,000 fully AI songs uploaded daily, suggesting human creators will be flooded out, especially since a survey found 97% of listeners couldn't distinguish between human and AI music. The attorney suggests that independent artists should adopt a "sell before you stream" method and treat platforms like Spotify as mere advertising rather than a reliable source of income. Ultimately, the discussion underscores that the current practices are not only harming creators but are also defrauding advertisers and shareholders, making the overall system unsustainable.