When we reported yesterday on Spotify’s defence of its Discovery Mode tool, we noted that its response to a recent letter from two US congressmen with questions about the feature would shed more light on its strategy.
That response has leaked, via Billboard, including the claim that “fears that Discovery Mode may lead to a ‘race to the bottom’ largely rest on a misunderstanding of the way in which Discovery Mode works”.
That’s in response to the question – discussed here in the past – about whether if everyone opts in to Discovery Mode, that will mean that they all receive a lower royalty rate, while diluting the promotional benefits. That isn’t addressed head-on in Spotify’s response, but instead the company focused on the idea of competition between smaller and larger artists.
“The alternative, after all, would be to deprive smaller artists of the tools they need to invest in their careers – reserving the most effective promotional channels only for those with the deepest pockets…” The response also notes that Spotify considers the pilot to have been a success. “Based on these early results and great initial feedback, we hope to move beyond our limited pilot stage, opening up the product to more artists and labels, later in 2021.”