House Judiciary Committee Queries Spotify About its 'Discove

House Judiciary Committee Queries Spotify About its 'Discovery Mode' Feature


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On Wednesday, House Judiciary Committee Chairman Jerrold Nadler (D-N.Y.) and Subcommittee on Courts, Intellectual Property, and the Internet Chairman Henry C. Johnson, Jr. (D-Ga.) announced that they have questioned the music streaming platform Spotify Technology S.A. about its new mode that allows musicians to pay to have their songs recommended on Spotify’s app. 
The letter they sent expressed concern that the feature may foment a “race to the bottom” as artists and recording labels may feel obligated to accept lower royalty rates to enhance their edge in the competitive music industry.
The representatives explained that Spotify’s Discovery Mode feature allows artists and labels to “identify particular songs that they would like to prioritize in Spotify’s recommendations in exchange for agreeing to be paid a lower, ‘promotional’ royalty rate.” In their letter to Spotify Founder and CEO Daniel Elk, Reps. Nadler and Johnson posed several questions about the design and proposed use of the Discovery Mode tool. The legislators explained that they want to understand the impact the feature will have on artists, who amidst the COVID-19 pandemic have suffered substantial income loss.

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