Spotify Makes changes with New Pay for Influence Discovery Mode that has become a controversial issue. ‘Discovery Mode’ works by letting a label or artist identify a track that they want prioritized, with that track then played in listeners’ personalized Auto play or Radio feeds. By opting in, they agree to being paid a lower recording royalty rate for streams in those personalized sessions (in Radio and Autoplay). If they opt out or a song doesn't perform well, Spotify will remove it immediately from discovery and not give that track a chance to recover or be discovered. An announcement suggesting that artists can choose to be paid less per stream for their tracks to be played in personalized feeds couldn’t have come at a worse time for SPOT in terms of its reputation amongst the wider artist community. Just last week, Spotify was issued with an open letterfrom the Union of Musicians and Allied Workers demanding better payment and claiming that the streaming platform “encourages labels and management companies to pay for plays on the platform”.
“The practice amounts to payola,” added the letter. “It is unacceptable and must be stopped.” Unsurprisingly, Discovery Mode immediately drew criticism from artists. David Lowery, for example, suggested via a tweet that “This a form of payola or sponsored social media post. It is not necessarily illegal but the tracks would need to be labeled”.