How Spotify’s Tool Went From ‘Payola’ Accusations to Widespread Use

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Ashley Carman, writing for Bloomberg:

In 2020, Spotify made waves in the music industry with the announcement of a tool that would alter how people hear music on its platform: Discovery Mode, which allows labels and artists to accept a 30% reduction in royalties in exchange for an algorithmic boost. These promoted songs can show up in certain playlists , including Spotify Radio, autoplay and particular personalized selections. […]

The Discovery Mode tool has become a critical part of many marketing strategies, particularly around an album release or to promote a catalog. Almost everyone I spoke with emphasized that the tool alone won’t create new fans or offer long-lasting impact. It requires a more holistic strategy, meaning people might hear a song on Spotify because of Discovery Mode, but, at the same time, also encounter a billboard with the artist in question or hear the song in a TV show or on TikTok. Shortly thereafter, the artist might go on tour. This means artist teams try to be selective about what they include, though people I spoke with noted that both Spotify and distributors encouraged them to opt every song into it.

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