Spotify launching program to boost artist visibility in exchange for lower royalties
Spotify has announced an experimental feature that will allow creators and publishers to choose music they want to promote more in exchange for less revenue from plays of chosen songs.
Spotify published an announcement of this feature alongside an explanation of how Spotify's personalized recommendations for its users works. The factors that influence the algorithm that powers these playlists includes time of day music is listened to, how it's interacted with (either passively or liked and shared), genre, and elements such as tempo. These are just some of the thousands of unique factors incorporated into the algorithm.
This experimental program will give an artist or label's selection for promotion to the algorithm that generates personalized music playlists for the service's millions of users. According to Spotify, the reason that this will result in a reduced royalty payout instead of an upfront cost is "to ensure the tool is accessible to artists at any stage of their careers." The service also mentions that this treatment isn't a guarantee of improved performance or even better placement in personalized recommendation playlists, citing that their priority lies with listener satisfaction.
This experimental feature will only apply to Spotify's Autoplay and Radio formats that focus on users actively looking to discover new music. The service's development team will continue to roll out the option for artists and labels to other areas of Spotify that utilize personalized curation. No timetable was announced for this expansion.