Fans can now donate to their favourite artists via Spotify, but this feature is a tacit admission that the firm undervalues the musicians that make it viable. --- Spotify’s method of generating the premium subscriptions that will turn it a profit was canny: draw people in with an excellent user experience and relatively light advertising in the free version during its early years, then ramp up the advertising to near-intolerable levels and wait for users to cave in to spending a tenner a month. Many casual music fans are now spending money more regularly on music than they did in the download or CD era. But the nature of the exchange has utterly changed: people are not paying for music but for a lack of advertising. The music is available either way. This is why the inclusion of the “tip jar” button is such a slap in the face for artists: it’s being initiated by the very service that helped to break the link between art and money. By paying royalties via both ad-funded and paid-for streams, Spotify has taken the onus off the consumer to pay the artist, and then, via low royalty payments, quietly eroded the monetary value in music that consumers and labels once propped up. The tip jar, while helping to replace lost touring earnings, is a tacit admission that artists are not being paid enough by the very service offering it – a similar admission was made by Amazon on Thursday in revealing that it paid £250,000 to a coronavirus hardship fund for authors. […] For consumers, Spotify’s staggeringly vast and high-quality library remains one of the greatest things to have ever happened in music, but it is nothing without the artists who add to that library every day. Maybe subscriptions should cost more – the competitiveness between the streaming companies has forced down the value of music, and this now perhaps needs correcting. That would require a recalibration of how we value music, and it would need Spotify and its competitors to lead it. For now, donate to your favourite musicians, buy their T-shirts, cherish their artistry, and never let the company that built an empire from their labour off the hook.

A new type of Payola is taking place on Spotify, with artists using third-party services to get added to influential playlists, and the company is inadvertently paying for it.