The major music labels are upset that they don’t get more play on Spotify’s mega-popular playlists, says Deutsche Bank (SPOT, APPL)

Daniel Ek

The top record labels are unhappy that Spotify isn’t including more of their songs in its curated playlists, according to a note published by Deutsche Bank’s analysts.
For Spotify’s users, curated playlists are popular way to access songs.
While this may sound like a way that Spotify can gain some leverage over the labels and use it to negotiate better royalty rates, the analysts were skeptical.
Spotify doesn’t have the same market dominance that it once did, and the labels have plenty of other places, including Apple, to distribute their songs.

The largest music labels are unhappy that Spotify isn’t providing them with more access to an important part of the streaming music service, according to a report published Thursday by Deutsche Bank.

These curated playlists are put together by a combination of algorithm and hand-picked choices by Spotify employees, and represent an important way for users to find new music, especially from smaller artists. In late 2017, Vulture called Spotify’s RapCaviar “the most influential playlist in music,” reporting that its millions of listeners help turn unknown artists into mainstream successes.

According to Deutsche’s report, the three top labels are unhappy that not enough of their music is being included in these lists. The bank cited as the source of the info an unnamed 25-year music industry veteran, who sat with the analysts and tried to help them understand Spotify’s economic position.

“Algotorial playlists on Spotify have a lower share of major label content,” the bank’s analysts quoted their source. “As this grows in the listening mix the major labels stand to marginally lose share. Our featured speaker noted this as a major thorn in labels’ sides.”

Razor-thin margins

This is a major revelation, if accurate. Curated playlists are popular. They account for 30 percent of listening on …read more

Source:: Business Insider

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