Streaming platform Spotify has launched a new tool called Showcase which allows artists to pay to feature on the app’s homescreen. The tool is described as a “campaign tool to give your music its moment” but artists have criticised it, saying it takes them further away from what they want: getting paid properly. The product is available to any artist with at least 1,000 monthly streams, with budgets starting at $100 and campaigns lasting either until the budget runs out or two weeks after the Showcase started. The budget is spent on a cost-per-click (CPC) basis, starting at $0.40 CPC.
According to Label Grid, even the lowest CPC rate is at least 80 times more than what an artist can receive in royalties per stream. This has left creatives questioning the point of the tool, with Twitter user DNSCEO querying its ability to generate income for artists. Other users have also criticised it, saying Spotify is moving away from its personalisation model, with functions like Discover Weekly and DJ designed to provide users with unique experiences.
This is not the first time that Spotify has made artists pay for marketability on their platform. In March 2023, Spotify announced that artists could opt-in to feature on Discovery Mode but the catch was that artists had to give up 30% of their royalty rate. Following Spotify’s decision to increase subscription fees earlier this year, the company promised the rise was part of its commitment to “deliver value for artists.”
Spotify has been criticized by artists who believe the company should pay higher royalties. The company’s share price dipped recently on news that the US Department of Justice is considering antitrust action against Spotify for suppressing competition in the music streaming market
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