This week, Spotify made a public statement to address rumors and incorrect information about its terms of service.
The company’s clarification came after creators, including artist @chantmagick, posted videos alleging that Spotify had changed its terms to allow the transfer of artists’ music rights to outside parties such as partners, affiliates, or technology providers.
Spotify responded by publicly denying these accusations, assuring users that the revised terms do not impact the rights of artists, podcasters, creators, or authors to distribute their music, podcasts, or audiobooks.
Rather, the updated terms are directed at listeners. According to Spotify, these rules permit the platform to “showcase features like custom playlist covers made by users, comments on podcasts, and playlist titles created by listeners.” It is standard practice for streaming and music platforms to utilize content generated by users.
Spotify, a leading music streaming service, still faces ongoing backlash over how it compensates artists, with critics claiming that creators are underpaid for their contributions. In response, lawmakers Rashida Tlaib and Jamaal Bowman introduced the Living Wage for Musicians Act last year, which seeks to raise streaming royalties to one cent per play.
In spite of these criticisms, Spotify maintains that its payouts are on the rise, reporting that it distributed $10 billion to the music industry in 2024.