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Inside the Booming Black Market For Spotify Playlists (dailydot.com)

The black market for Spotify playlists is booming. It's cheaper than you might expect to hack the system -- and if it's done right, it more than pays for itself, the Daily Dot reports. From the article: It's impossible to overstate the value of Spotify playlists. The company dominates the streaming music market, with 159 million active users and 71 million paid subscribers -- nearly double Apple Music's subscription base, according to a recent report in the Wall Street Journal. More importantly, Spotify has made playlists its defining feature. [...] The rising value of Spotify playlists has spurred a new form of payola -- the decades-old illegal practice of paying for a song to be broadcast on the radio -- with massive amounts of money changing hands behind the scenes. An August 2015 expose by Billboard quoted an unnamed major-label executive who claimed playlist adds were being sold for "$2,000 for a playlist with tens of thousands of fans to $10,000 for the more well-followed playlists." Spotify responded by updating its terms of service to explicitly prohibit "selling a user account or playlist, or otherwise accepting any compensation, financial or otherwise, to influence the name of an account or playlist or the content included on an account or playlist." But the practice of paying for placement, as with other forms of payola before it, hasn't died out. It's just been remixed.

In a matter of minutes and for a mere $2, you can pay to have your song considered by one of the 1,500 curators working on SpotLister, one of several new services that sells access to prominent Spotify users. The site was founded by two 21-year-old college students -- Danny Garcia, a guitar player at New York University, and a close friend who requested anonymity due to unrelated privacy concerns. They started a "private-for-hire" PR company in 2016 that offered "pitching services" to generate buzz on SoundCloud and, later, Spotify. The two would take on anywhere from 15 to 20 clients a month, each paying anywhere from $1,000-$5,000 to secure prominent placement on playlists.

45 comments

  1. Should be easy enough to shut down by jonwil · · Score: 2

    If its a violation of the terms of service to do this stuff, then it should be fairly easy for Spotify to get SpotLister and these other services shut down (maybe make use of the overly broad overly vague CFAA to do it)

    1. Re:Should be easy enough to shut down by Anonymous Coward · · Score: 2, Informative

      just like you can't buy facebook or instagram likes or twitter followers and retweets or amazon reviews..... if there's a way to scam, legal or not, people WILL FIND IT, and exploit it.

    2. Re:Should be easy enough to shut down by Anonymous Coward · · Score: 0

      You just described all advertising.

    3. Re:Should be easy enough to shut down by Anonymous Coward · · Score: 0

      But getting a song on a playlist generates real listeners (unless the followers are fake), it's not some artificial BS for the most part. I just don't agree with demonizing third-party services helping out independent artists... especially when major labels have nearly complete control over the biggest playlists on Spotify. If Spotify shuts down those independent services, it'll be a loss for the democratization of music.

    4. Re:Should be easy enough to shut down by checkmate25 · · Score: 1

      But getting a song on a playlist generates real listeners (unless the followers are fake), it's not some artificial BS for the most part. I just don't agree with demonizing third-party services helping out independent artists... especially when major labels have nearly complete control over the biggest playlists on Spotify. If Spotify shuts down those independent services, it'll be a loss for the democratization of music.

  2. to bad by Revek · · Score: 0

    They replace many of their titles with sucky live versions.

    1. Re:to bad by Anonymous Coward · · Score: 0

      please moderate my groin.

  3. Or buy them... by DrYak · · Score: 2

    or Spotify should buy SpotLister.

    (See the vertical integration in radio markets nowadays).

    --
    "Sufficiently advanced satire is indistinguishable from reality." - [Tips: 1DrYakQDKCQ6y52z6QbnkxHXAocMZJE61o ]
  4. What an interesting twist on an old trick. by Samurai+Nigel · · Score: 1

    I truly had no idea this was still a thing, but modernized for a different delivery method. People truly will find any possible way to make a buck.

    If it's in violation of the TOS, it should be easy for Spotify to knock out the big guys, at least in theory. Smaller or quieter operations though... Whack-a-mole? Needles in a haystack?

    1. Re:What an interesting twist on an old trick. by MightyYar · · Score: 2

      It depends on what you mean by "big guys". If you mean companies openly selling influence, sure - that's easy. If you mean the actual big guys in the record industry, then no - they won't be successful. Nothing will ever stop a rep from Sony quietly getting in touch with a popular playlist creator and working out an arrangement. Now that I think about it, I guess I prefer the company openly selling influence... :)

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    2. Re:What an interesting twist on an old trick. by Anonymous Coward · · Score: 1

      There is some benefit to payola, as it generally promotes music that someone feels can be successful, even if its just a pop tune. Promoters generally only pay for their selected best. Popularity comes with some minimal level of acceptability (one could of course debate how low that level is), coupled with repeated exposure.

    3. Re:What an interesting twist on an old trick. by MightyYar · · Score: 1

      I mean, there's certainly no moral case against it (unless they lie about it). But I know for me, it would make the product less desirable - I'm not really interested in listening to advertisements - if I listen to a playlist, it's generally to introduce myself to music that comes from a source that shares my tastes. This is the same reason I tend to listen to WXPN (U of Penn radio) rather than commercial radio - it seems like every day I'm making a note of something I hear on that station.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    4. Re:What an interesting twist on an old trick. by Samurai+Nigel · · Score: 1

      I mean the "big guys" like this SpotLister group. "Big guys" playing the advertising game openly, and for a set price. The secret promoters, whether they're Sony shills or some hipster named Asher trying to get his girlfriend's Ani DiFranco cover band off the ground, they can never plug all the holes.

      I do see the irony of excluding the Sony rep from "the big guys," now that you bring it up.

    5. Re:What an interesting twist on an old trick. by Samurai+Nigel · · Score: 1

      The tricky part is that the "advertisements" could potentially be both: one part paid-for ad, and one part exactly the similar-source music you're looking for. Of course, it can also be one-part advertisement, and one-part canned, unrelated garbage, which is exactly what you're trying to avoid.

      I agree with the sentiment that there are benefits to payola, but with the very nature of it being a double-edged sword, I tend to agree with you that it's not worth it. I'd prefer my musical branches grow organically.

  5. What is the big deal with playlists? by Anonymous Coward · · Score: 0

    Personally I cannot see the attraction of saved playlists, and never use them. I will create one-time playlists by queuing the albums/tracks I want to listen to at the time. Does the popularity of saved playlists mean that many (or most) people just want to listen to the same tracks over and over? Spotify has such a large catalog that I am sure that there is sufficient for almost everyone to listen to tracks that they like without playing the same track more than once or twice a month. Finding new music is quite simple, use Spotify's or Last FM's similar artists or use Spotify's radio.

    1. Re:What is the big deal with playlists? by Anonymous Coward · · Score: 0

      Some people like to listen to new things and find new music. Sounds like you. Some people (like me) just want to hear what we like and not bother with anything new. It is interesting to see how those differences are roughly equivalent to age. Yep, I am old. I play the same playlist of 300 or so songs several times a month. It is just what I want to hear.

    2. Re:What is the big deal with playlists? by 742Evergreen · · Score: 1

      I think this is mostly about playlists that are refreshed every x days.
      Say you have a playlist called "Hot Dance Tracks". Fans of the genre can subscribe, and get a new selection of tracks every week.
      If you have 400 000 subscribers, some people might be willing to pay to have a track included in next week's hotness.

  6. Impossible by mentil · · Score: 1

    It's impossible to overstate the value of Spotify playlists.

    One Trillion Dollars
    QED not impossible

    --
    Corruption is convincing someone that the selfless ideal is the same as their selfish ideal.
  7. Free market will take care of it by 140Mandak262Jamuna · · Score: 4, Interesting
    These playlists have a following because they have a reputation of creating good quality music selections. If they squander the goodwill by selling out to paid placements, so be it. Free market will take care of it.

    In the Radio spectrum is limited and licensed and it was the only free content delivery system for the masses. Since a few people got to be gate keepers, we needed rules to make sure they do not abuse the defacto monopoly status given to them by the government. On the internet, with unlimited opportunities for all players to pitch music, there is a dire need for someone to provide editorial services, find good music from obscure and unexpected sources, draw attention to it and develop a reputation of being a good play list creator. And people will pay for a good play list. It is no different from being an editor of a literary magazine.

    It is high time spotify recognizes it and makes it official. Let thousand playlists bloom, market will shake out those who sell out.

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    1. Re:Free market will take care of it by Nidi62 · · Score: 2

      These playlists have a following because they have a reputation of creating good quality music selections. If they squander the goodwill by selling out to paid placements, so be it. Free market will take care of it.

      It's tautological: The songs on these playlists must be good because the playlists are popular, and these playlists wouldn't be popular if the songs weren't good. So a lot of people will see those paid songs and assume they "have to" like them no matter if they really do or not. It happens all the time with art, music, movies, and video games. If people are told enough times that something is good they will talk themselves into believing it as well.

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    2. Re:Free market will take care of it by s1d3track3D · · Score: 1

      If they squander the goodwill by selling out to paid placements, so be it. Free market will take care of it.

      BS. Just listen to the radio, there's hardly a good song to be found...

      . If people are told enough times that something is good they will talk themselves into believing it as well.

      This. The truth is most people don't know what a good music is, as long as it's melodic-ish sounding and features attractive people marketed well (easily found) they will consume what you tell them too.

    3. Re:Free market will take care of it by Anonymous Coward · · Score: 0

      Those online third-party platforms were invented with the purpose of delivering relevant content to playlist owners. Song additions are entirely at their discretion. Depicting this as a "black market" is pure sensationalism- these platforms like Spotlister and Submithub help more than hurt independent artists who have no other way of getting into big playlists that are dominated by major label artists.

    4. Re:Free market will take care of it by Anonymous Coward · · Score: 0

      The truth is most people don't know what a good music is, as long as it's melodic-ish sounding and features attractive people marketed well (easily found) they will consume what you tell them too.

      And? If that music serves all their music needs what's the problem? Alternatively if they find that meaninglessly shallow and go looking for something deeper, again what's the problem?

  8. I do not think Playlist means what they think it by Anonymous Coward · · Score: 0

    means...

    A playlist is a list of songs the user has selected that they wish to listen to in the order they have selected.

    From context, that is not what they mean. I don't use Spotify, in what manner did they mangle the word playlist and what do they actually mean when they use it?

  9. commentsubject by Falos · · Score: 1

    17 posts so far. I'm the third to wonder Who Cares about a few lines of text listing tracks to play.

    1) Pink Floyd - Shine On You Crazy Diamond
    2) LED Zeppelin - Whole Lotta Love
    3) Queen - Another One Bites The Dust
    4) AC/DC - Highway to Hell

    Am I missing something? How much will I get paid for spending 30 seconds putting those in a row? Aren't there people on the youtubes that do this? Better than me, I'm sure.

    But not as sure as I currently am about some vague misnamed feature possibly involving some kind of, er, subscription? Is this like, a podcast thing? I imagine it involves exploiting people who need to be told what to listen to.

    1. Re:commentsubject by s1d3track3D · · Score: 1

      Those are some really current innovative bands you listed there... lol
      Do you seriously not listen to any current music? I like the 'classics' too but really, that is all you listen to? If so this discussion is not relevant to you.

      A lot of people enjoy hearing new music by new bands, how do you find those new good groups? Based on the group you like, check out "Rival Sons - Pressure and Time", your welcome, please send my $5 when you can...

    2. Re:commentsubject by Anonymous Coward · · Score: 0

      I went for lowest common denominator. If you found the list uninnovative, it validates my attempt. I wouldn't dislike those songs, but I haven't actually grabbed any of them, and they'd probably never sit in my phone.

      How do I find new music? I don't. It finds me. I don't sit in on The Scene, I don't follow bloggers or podcasts. I don't do anything. Yet the hard drives keep filling up. I have, somewhere in here, a three-hour track from DenmarkTrance2003 or whatever. I have no recollection where I got it from.

      I'm not trying to act disinterested, it actually bothers me that I have my collection so poorly understood. I can at least account for the rhythm game simfiles (user-made, not license-buying studios) which have been a nice source of EDM&c. Putting one together is a labor of love, and the skilled ones only happen when a passionate user charts a worthwhile track. Grab 100 tracks, most of which you won't bother extracting. Of those you did, most go into your archive and not your active library. What's left will have a lot more staying power than algorithm picks.

      To the point, I'm not going to take music recommendations from the school of purchase opportunities you may be interested in. Or any recommendations, if I can avoid it. If I want to pick a tire brand (insert anything) I'll watch nerds bitch at each other about it on /. or wherever. Not obey some youtwitch I subscribe to.

      This is only more true on points of taste. Like music. Like style. Wear as you like, not as you're told.

  10. Spotify in 10 years by OrangeTide · · Score: 1

    We won't even remember it. It'll be like Pets.com and Webvan.

    --
    “Common sense is not so common.” — Voltaire
    1. Re:Spotify in 10 years by Anonymous Coward · · Score: 0

      Yet, you remember both Pets.com and Webvan. So you quite likely will remember Spotify as well. So there you go.

    2. Re:Spotify in 10 years by OrangeTide · · Score: 1

      That's because I'm old and full of obscure references.

      ex: Captain Simian and the Space Monkeys

      --
      “Common sense is not so common.” — Voltaire
    3. Re:Spotify in 10 years by Anonymous Coward · · Score: 0

      Biker Mice from Mars

    4. Re:Spotify in 10 years by WindowPane · · Score: 1

      Homestar Runner

      --
      No Brains, No Headaches
  11. Just a new way to get money from musicians by jmyers · · Score: 1

    If this had any value it is most likely gone. Now thousands of musicians will sign up for the service and try to get their songs listed on many irrelevant playlists. This might help If you happen to have some really great and very well recorded original songs that fits perfectly in a very high traffic genre. Most people don't.

    99.9% of the people that sign up will have real crappy songs that will not go anywhere. People will take your money and maybe even get them on some playlists but users will skip the songs and you will spend more than you make.

    1. Re:Just a new way to get money from musicians by Anonymous Coward · · Score: 0

      If you read the article it describes how playlist owners don't have any obligation of adding tracks unless they like them. Seeing as that's the case, there is no extra incentive for addition to their playlists, unless they like a particular song. And I do believe that there are thousands of talented artists out there that simply do not get a shot at making it in the music industry because they have no resources to be able to get their music exposed to listeners. I don't think demonizing third-party services that help out the little man is the solution- the problem is the big labels having nearly complete control over Spotify's most popular playlists.

    2. Re:Just a new way to get money from musicians by checkmate25 · · Score: 1

      If you read the article it describes how playlist owners don't have any obligation of adding tracks unless they like them. Seeing as that's the case, there is no extra incentive for addition to their playlists, unless they like a particular song. And I do believe that there are thousands of talented artists out there that simply do not get a shot at making it in the music industry because they have no resources to be able to get their music exposed to listeners. I don't think demonizing third-party services that help out the little man is the solution- the problem is the big labels having nearly complete control over Spotify's most popular playlists.

    3. Re:Just a new way to get money from musicians by Anonymous Coward · · Score: 0

      Agreed!!

  12. Spotlister is DOWN !!! by Anonymous Coward · · Score: 0

    Maybe it's because of the story coming out. But they have the following message up:
    We are rebranding due to conflict of interest blahblah blah

    1. Re: Spotlister is DOWN !!! by Brockmire · · Score: 1

      They should rebrand as PotLister, and take advantage of all the decriminalization going around.

  13. Re: I do not think Playlist means what they think by Brockmire · · Score: 1

    Channel or station.

  14. About time we let African Americans participate in by Anonymous Coward · · Score: 0

    Im surprised evil old white men were able to keep blacks away from playlists till the year 2018.
      Now that spotify playlists are no longer the exclusive domain of racists, I'm sure their influence will bring in a new age of peace prosperity and free abortions.

  15. Re:I do not think Playlist means what they think i by Anonymous Coward · · Score: 0

    It's a playlist as you describe it, but selected for the listener not by them.

  16. Staying power. by Anonymous Coward · · Score: 0

    In twenty years, Highway To Hell will still be rocked out to more than anything by the latest inmemorable Beyoncé offering.

    Why? Because AC/DC crafted a timeless, classic track that will hold up forever. Beyoncé? A plastic, disposable piece of puff "music" one tires of within days. It's the difference between eating steak and cake frosting: one nourishes and satisfied you, the other (while initially appealing at first taste) is cloying and makes you vomit if you have too much.

  17. IMPORTANT INFORMATION REGARDING SPOTLISTER/JAMLIST by Anonymous Coward · · Score: 0

    As you may already know, Spotify deemed our platform non-compliant with Spotify's Terms of Use and while it is true our API Key was deactivated and we had no other option but to shut down the service. In the meantime, many news outlets and bloggers picked up the Daily Dot story and portrayed us as a pay-to-playlist service and cited information that was not only misleading but completely false.

    For this reason, we decided to release the following statement and substantiate with actual metrics and facts about our platform:

    Firstly, Like Spotify, we reiterate that we are unequivocally against pay-to-playlist. However, this conviction does not negate the music promotion activities that take place each and every day around the globe, including song submissions to playlist curators, a process we decided to build upon and pledged to improve. You see, Spotlister was conceived and developed simply to give rising artists the opportunity to submit their music for consideration to the curator community never to pay for placements on their playlists.

    So, here are a few of the fake news that have been circulating around and our response according to the facts:

    1) Spotlister has been operating for about 2 years and it was a huge player in the music submission business.
    FACT: Spotlister was officially launched in November 2017 after a brief beta phase of 2 weeks. In fact, we were a rather small and upcoming player in the online music submission services arena and we only got to serve a few hundred customers. So we are still at odds and rather confused as to why we were picked as the focus in the Daily Dot article and portrayed as a huge service with in-depth knowledge of the industry with many years of operation.

    2) Spotlister was a pay-to-playlist service
    FACT: Not once did we ever communicate directly or pay a single playlister for placements on any of their playlists! While it is true submissions prices ranged between $2 and $10 and that Playlisters received $0.24 for their time invested in doing a review, the rest of the money went to develop and operate a fairly new platform looking to make a name for itself in the online music submission business. To put this in perspective, during our short-lived 3 months of operations, Playlisters collected an average of $22 from our platform. As you can imagine, there is little or no influence we could have made on playlist placements.
    FACT: During the entire lifespan of our platform (3 months), we had a total of 24714 Submissions, out of which 11631 expired and credits were refunded to artists and 13083 were reviewed and completed by playlisters. Only 8% of all posted submissions resulted in a voluntary placement by playlisters. In contrast, other music submission sites cite millions of submissions and an even better placement ratio.

    3) Artists paid up to $2,000 per placement on playlists.
    FACT: Our platform allowed artists to buy credits to submit songs to the different playlists available in our platform. Our credit Packages started at $10 and the most expensive package we offered was $100 which provided 75 credits (a $150 value). In average, artists spent $54 while using our service. Again, there is very little an artist can do to influence placements with that kind of budget. We reiterate, there was no backdoors in Spotlister or communications that could have enabled additional payments to playlisters for placements in our platform. Artists submissions were not even read or actively monitored by Spotlister personnel.

    4) About our rebranding effort to Jamlister
    FACT: The initial Spotify communication cited our name "Spotlister" as one of their main non-compliant issues with our service, they provided us 30-days to cure. Within 24 hours of their initial communication, we halted operations, registered the Jamlister.com domain and started migrating our platform to our new name. The service remained halted while this effort was ongoing for around 1 week after which we responded to their initial request to change the name addressing th