Key Takeaways
- Xiu Xiu removed music from Spotify due to moral objections over CEO Daniel Ek's investment in an AI drone company.
- The band considers Spotify's compensation model 'theft,' paying artists fractions of a penny per stream.
- Xiu Xiu hopes their withdrawal raises fan awareness about how subscription money is used.
- Beyond finances, the guest argues streaming devalues music as a uniquely human endeavor.
Deep Dive
- Jamie Stewart of Xiu Xiu stated the band earns a fraction of a penny per stream, calling Spotify's model 'theft'.
- Stewart estimates Xiu Xiu would earn 45 times more if paid one cent per stream.
- The band removed their music from the platform, expecting a noticeable loss of revenue.
- Xiu Xiu cited Spotify CEO Daniel Ek's investment in Helsing, a German defense contractor manufacturing AI war drones, as the 'final straw' for withdrawing their music.
- Ek's venture capital firm invested 600 million Euros in Helsing in June, stating it was 'the right thing for Europe'.
- Jamie Stewart disputes Ek's sentiment, arguing arms companies historically do not prioritize people's interests and profiting from murder is unethical.
- Stewart also mentioned poor sound quality and the perception that streaming devalues music as contributing factors.
- Jamie Stewart notes that while other musicians have reached out, the movement to withdraw music from Spotify remains relatively small.
- The process of removing music from multiple labels required significant effort, with some music still on Spotify due to uncooperative labels.
- Stewart emphasized that the withdrawal is primarily a matter of conscience, not intended to significantly impact Spotify's finances.
- He hopes the action encourages music fans to be more aware of how their subscription money is used.
- The guest discussed the inherent difficulty of disengaging from streaming services due to their convenience.
- Streaming's ease of skipping tracks has diminished active, meaningful engagement with music compared to past physical media.
- The financial model pays artists very little, even major ones, and audio quality is at its lowest on streaming platforms.
- This, combined with Spotify's investment in a defense contractor, creates a profound moral issue beyond financial impact.
- The guest suggested that diluting music's value and profiting from harmful industries through streaming devalues humanity itself.
- Coda, a streaming company run by musicians, was introduced as an artist-friendly alternative, offering approximately twice the pay rate of other services.
- Spotify stated it is in communication with artists who have left and welcomed their return, reporting that independent artists generated roughly half of the $10 billion paid to rights holders last year.
- The host drew parallels between tech companies' dominance in music and control exerted by Ticketmaster and Live Nation in ticketing, highlighting a widespread trend.