In a moment of irony, Spotify is getting called out by songwriters in its home country.
Spotify is said to have helped grow the sale of Swedish music, but songwriters in the country say the service isn’t treating them right.
In an open letter, 133 songwriters say they are not being fairly compensated by digital music streaming services like Pandora and Spotify. The article, published on Aftonbladet, specifically names Spotify as one of the music services that fails to pay the people who actually make the music getting streamed.
Plus, the letter notes, songwriters can’t rely on concert, merchandise, or other outside sales to bring in extra cash.
To combat the problem, the organization listed three steps that the industry should take in order to move towards a more fair compensation model for artists.
First, streaming services should be more transparent. The group says non-disclosure agreements prevents anyone from being able to see how the company pays out the music industry and what percentage of money goes to songwriters and musicians. The letter cites a recent study by CISAC that shows songwriters collect roughly three percent of streaming revenues.
The group issued two final recommendations. First, that streaming services pursue a compensation model that rewards the entire industry rather than just labels and distributors. Second, the group believes streaming services should credit songwriters in their music listings.
The release of the letter is said to have been pegged to a meeting between Swedish Society of Songwriters, Composers and Authors, also known as SKAP, and several music labels.