Spotify CEO and Chairman Daniel Ek has received a letter from the Judiciary Committee of the U.S. Congress. The letter questions the working and purpose of Spotify’s relatively new “Discovery Mode,” a promotional tool offered to recording artists and record labels which influences which songs get onto listener playlists in exchange for lower royalty rates when those placements are streamed — a potential payola issue. Click for an explanation of Discovery Mode and the complete letter. Continue Reading
The following first appeared as a Billboard.biz Guest Post I wrote as founder/CEO of AccuRadio and a member of the Small Webcaster Alliance. It appeared on Tuesday, the eve of yesterday’s subcommittee hearing.
As an Internet radio broadcaster and member of the Small Webcaster Alliance, I’ve been involved in the issue of copyright royalty rates for Internet radio for many years. And I’ve seen vividly that the current royalty rate system threatens to strangle the life out of an industry that is providing both choices for consumers and opportunities for musicians. Continue Reading