SSince its inception, Spotify has been criticized for helping turn music from a precious commodity into a utility. Critics argue that its monthly all-you-can-eat subscription doesn’t encourage long-term commitment, while its uniform, blank presentation of an artist’s catalog reveals little of the hard work or distinct narrative behind any given release: the The platform doesn’t show songwriting and production credits until 2018, 12 years after release.
Last week Spotify announced the biggest overhaul to its interface, designed to address these issues. Rolling out to UK users in the coming weeks, these updates include the ability for artists to add 30-second videos to their pages, target superfans with special releases and give the page a higher profile placement. marketing and concert tickets. The biggest change comes in the form of a redesigned homepage that features an endless feed of short-form videos, which looks strikingly similar to the TikTok feed.
The changes are designed to create “deeper discovery and more meaningful connections between artists and fans,” says Tom Connaughton, Spotify UK & Ireland MD. “Previously, you probably thought of Spotify as the best listening destination. This evolution is about bringing the platform and Spotify to life in a deeper way.”
For artists who want to build a brand, creating a world around their music and showing who they are as a person is key to long-term engagement with fans. This has barely been possible within Spotify thanks to a relaxed listening experience that prioritizes playlists, with no further interaction required beyond pressing play. The success of one viral song doesn’t necessarily translate to the rest of an act’s catalogue.
This creates a situation where “artists can stream millions of times, but they won’t be able to sell a ticket in their hometown,” says music manager and record label co-owner Peter McGaughrin, who works with acts including Everything Everything. , Nilüfer Yanya and Alfie Templeman. Spotify’s ad posits the platform as the solution for artists who feel scattered, “pulled in all directions” across multiple platforms to try to build a level of engagement that results in a career.
If Spotify gets it right, McGaughrin says the updates could help an artist build a better business in the long run. Others are less optimistic. Reacting to Spotify’s Update, Independent Artist and Producer Thys tweeted that digital music “is a convenience, a service” and artists should focus on generating revenue in other things, such as shows, physical sales, and digital sales on platforms like Bandcamp (although new RIAA figures noted that downloads now account for just 3% of recorded music revenue). “Streaming is designed to be cheap. Transmission rates are a race to the bottom. Go further.”
The changes come at an interesting time for Spotify, which is still generating debate about its payment model. At the beginning of this year, Lucian Grainge, CEO of Universal Music, said: “the critical contributions of too many artists, as well as the participation of too many fans, are undervalued [on streaming platforms].” Last week, Warner Music boss Robert Kyncl said that music is the lowest form of entertainment in terms of monetization compared to TV and movies.
In some cases, Spotify has lowered the amount you pay for music. The Discovery Mode feature, which will be rolled out to more artists and labels along with the new changes, offers promotion in exchange for a lower royalty rate. In a series of recent critical tweets, the Future of Music Coalition called it a “wage suppression scheme.” In defense, Connaughton points to last week’s announcement that Spotify’s payments to the music industry are nearly $40 billion, which it says is almost 70% of every dollar it generates from music.
Although there has been talk of Spotify raising their subscription pricesFor now, the platform seems to be focusing on trying to increase streams rather than their value. Connaughton is also pointing out links to in-app ticketing and merchandise, which will now be more prominent. “Many of the updates are directly focused on creating more avenues for creators to monetize their work and [for artists to] build your business and income from that.”
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Music and technology consultant Vickie Nauman says Spotify’s ambition to bring artists and fans closer together is smart. As she says, the next version of the internet, Web3, which is where newer developments like AI (which powers Spotify’s DJ mode), crypto currency, and 3D virtual worlds exist, is all about community.
“In the world we have now, there are artists and fans and a lot of things in between, like an algorithm or some kind of user experience, that prevents them from feeling connected,” he says. “With Web3, we are entering a very artist-centric world. The platforms that can bring fans as close to the artist as possible are the ones that are going to win.”
It’s clear that Spotify has turned to other apps for inspiration for its new look. The vertical home feed is reminiscent of Instagram and the addition of short video clips gives it a flavor of YouTube and TikTok. The comparison with the latter is particularly interesting: after being heralded as a key music discovery platform, TikTok’s moment of glory appears to be fading amid talk of its ban in the US due to security concerns. there has also been concerns raised about the amount you pay for the use of music.
But Connaughton says the idea that Spotify is morphing into some sort of TikTok hybrid is nonsense. “We are not optimizing for users to spend most of their time in an endless feed. We’re trying to focus on one goal, which is to help them find content to listen to or watch, in the case of video podcasts. Any recent conversations about TikTok, or any other platform, are unrelated.”
Spotify’s mission statement is to help one million artists make a living from their art. This is ambitious given that the number of people generating over $50k a year through the platform was 17,800 in 2022 and growth even within that group has slowed considerably In recent years. “Ultimately, what we’re trying to do is build the best home for creators,” says Connaughton. It’s not yet clear if updates to the app can help in that mission, or if competitors in the Web3 space will figure out a more effective way to serve musicians up front.
