News 3 November 2020

Spotify Testing New Function To Let Artists Promote Music In Exchange For Reduced Royalty Rates

3 November 2020

Spotify is testing a new featured which will allow artists to boost the visibility of specific songs on the platform in exchange for reduced royalty rates on those tracks.

Spotify announced the feature in a press release, which was followed by a spokesperson discussing the move further with The Verge.

Titled Discovery Mode, the feature will allow artists to push their music up within Spotify’s algorithmic system, appearing in Spotify’s radio and Autoplay feature, in exchange for an even lower royalty rate.

Speaking to The Verge, a Spotify spokesperson said: “In this new experiment, artists and labels can identify music that’s a priority for them, and our system will add that signal to the algorithm that determines personalized listening sessions.” 

“This allows our algorithms to account for what’s important to the artist – perhaps a song they’re particularly excited about, an album anniversary they’re celebrating, a viral cultural moment they’re experiencing, or other factors they care about.”

The spokesperson did not confirm the royalty rate.

Discovery Mode is set to be tested with artists and labels in the USA later this year and if successful, it will be rolled out globally.