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The Concealed Expense of Streaming: The Impact of Spotify on Emerging Artists - Atwood Magazine

The Concealed Expense of Streaming: The Impact of Spotify on Emerging Artists - Atwood Magazine

      This narrative reveals how Spotify's algorithms and payment structure are subtly disadvantaging new and emerging artists, complicating their chances of success in the current streaming landscape.

      by guest writer Alexes Church

      Today's music consumption revolves around which streaming platform subscriptions individuals opt for monthly, granting them access to a broad selection of music, immediate access to new releases, and the ability to support their favorite artists.

      However, what many fail to realize is that these streaming services, particularly Spotify, are negatively impacting new and aspiring artists. These artists are eager to share their music and emotions with the world but often find themselves confined indoors, looking out the window, as streaming platforms hinder their ability to create and connect with audiences effectively. There are numerous ways in which Spotify, in particular, is detrimental to new musicians and artists, and this issue extends beyond just one platform. While music continues to evolve, easing the process for artists to release their work, advancements in technology concurrently complicate genuine recognition for their creative output.

      An article by Bobby Owsinski notes that “of the 1.3 million artists added last year, 87.6% fell into the Undiscovered category, while 12.3% reached the Developing stage. Only .05% reach the Mid-Level stage or higher, meaning they ranked in the top 35,000 on the platform” (Owsinski, 2024). When people turn to Spotify, it's rarely to seek out the least known artist on the platform. More often, they gravitate towards established favorites like Taylor Swift, Green Day, or Bob Marley—consumers of media are constantly in search of content that evokes positive emotions in their daily lives.

      The challenge for emerging artists lies in the fact that record labels scout and sign new talent based on their Spotify metrics—such as audience size, streaming numbers, and average song listen duration. Labels are focused on securing profits, which typically leads them to artists who are already recognized. Additionally, labels scrutinize how frequently an artist's style appears on playlists and how their music is disseminated among different listeners across streaming services (McCarty, 2020).

      As previously mentioned, advancements in technology and the growth of streaming platforms have rendered other revenue streams in the music industry less lucrative than before. A 2022 study found that “streaming continued to account for a large majority of recorded music revenues in 2022. Paid subscriptions, ad-supported services, digital and customized radio, social media platforms, digital fitness apps, and others grew 7% to a record high of $13.3 billion in revenue” (Friedlander & Bass, 2022). In stark contrast, physical media only made up 11% of total revenue, while streaming accounted for a hefty 84% (Friedlander & Bass, 2022). As a result, listeners no longer feel compelled to purchase physical CDs or invest in alternative means to access the music they love.

      Spotify employs specific algorithms meant to ensure listeners enjoy music from artists they care about and “discover” new talents, or at least that was the initial hope.

      The platform has implemented and continues to refine its AI system, known as “Bandits for Recommendations as Treatments,” or BART for short. BART's objective is to keep users engaged, encouraging them to return repeatedly (“How Does Spotify’s Algorithm Work? Streaming Hacks for Musicians,” 2025). This system hinges on three primary components: Natural Language Processing, Raw Audio Analysis, and Collaborative Filtering. Natural Language Processing analyzes song lyrics and content, Raw Audio Analysis gauges the emotions evoked by a song in listeners, and Collaborative Filtering assesses new songs in relation to what current listeners enjoy based on their streaming habits (“How Does Spotify’s Algorithm Work? Streaming Hacks for Musicians,” 2025).

      Spotify explains in an article for artists that streams are counted “when someone listens for 30 seconds or more” (“How we count streams,” n.d.). This metric ties back to the algorithm in significant ways. The algorithm seeks positive markers in performance metrics, meaning if a listener surpasses the 30-second mark of a track, it signifies a positive data point. Additionally, that moment is when a stream is monetized (“How Does Spotify’s Algorithm Work? Streaming Hacks for Musicians,” 2025). This can be detrimental for new artists, as they often experiment with their sound and audience preferences, whereas established artists will have listeners stick around even if the initial 30 seconds may not be compelling.

      For a new artist, gaining placement on a listener’s Release Radar or Discover Weekly is crucial for achieving success on Spotify.

      These two algorithm-driven playlists are tailored to individual users' listening habits. “Release Radar is solely based on your followers. If someone follows your Spotify profile, your new music will show up on their Release Radar. Discover Weekly is slightly more complex; it is primarily informed by musical tastes, habits, and the analysis

The Concealed Expense of Streaming: The Impact of Spotify on Emerging Artists - Atwood Magazine The Concealed Expense of Streaming: The Impact of Spotify on Emerging Artists - Atwood Magazine

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The Concealed Expense of Streaming: The Impact of Spotify on Emerging Artists - Atwood Magazine

This narrative reveals how Spotify's algorithms and payment structure are subtly disadvantaging new and emerging artists, hindering their chances of succeeding in the current streaming landscape.