According to JP Morgan finance analysts, Spotify customers could earn $1,200 (£960) per month by listening to their songs on repeat 24 hours a day. According to the argument, Spotify’s royalty payment mechanism could be manipulated. Nevertheless, according to Daniel Ek, CEO of the streaming behemoth, it is not how the platform’s royalties function. Julian Klymochko, the founder of Accelerate, a Canadian investment firm, tweeted about the hypothesis after it was initially reported in Technology News UK.
“If it were true, my playlist would consist entirely of ‘Daniel’s 30-second Jam’ on repeat!” In response, Mr Ek tweeted. “But, it is not how our royalties system works.”
Fears have been raised that artificial streaming, in which devices repeatedly play selected tunes, is harming the music industry. According to the Financial Times, JP Morgan officials estimate that up to 10% of all streams are phoney. Svenska Dagbladet, a Swedish newspaper, revealed last week that criminal groups were utilising Spotify’s royalty system to launder money from drug sales.
