While the vast majority of these are curated by Spotify, the shares of the major labels’ own proprietary playlists may exacerbate the situation,” proceeded the text. “Independent label artists are getting far less than their fair share of access to the most popular playlists.
Putting more of that label’s music onto playlists would clearly reduce the risk of triggering such payments.” Thus, though Spotify has emphasized that it doesn’t accept payments for playlist placements, there may nevertheless be an incentive to award the highly coveted spots to the major labels’ artists. “While these are confidential, Spotify states that they include minimum payment guarantees, which require it to make payments even if that label’s recordings do not hit a specified level of streams. “Spotify’s incentives to playlist songs from the major labels may also be influenced by their contracts with those labels,” continued the report. In terms of playlists – which, needless to say, are capable of drumming up significant interest in tracks – “the largest distributors, owned by the major labels, may be more effective in gaining access to the platform’s proprietary playlists,” the analysis stated.
Potentially compounding these obstacles are the “confidential and complex” contracts that major labels ink with streaming services as well as their ownership stakes in the platforms, per the report.
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