The Sam Sanders Show WTF is up with Spotify?
Jan 20, 2026
Ashley Carman, a Bloomberg reporter who covered Spotify from its Stockholm HQ, explains why the platform is facing a cultural reckoning. Short takes cover reduced royalties via audiobook bundling, AI-generated and “perfect fit” tracks, controversial ads and artist backlash. They also tackle Spotify’s push into video, discovery tweaks like Discovery Mode, and whether the service can stay relevant to Gen Z.
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Bundle Classification Cut Songwriter Royalties
- Spotify rescued the music industry from piracy but now faces backlash over how streaming pays creators.
- Introducing audiobooks let Spotify classify itself as a bundle, lowering songwriter and publisher royalties by ~$200M in year one, per NMPA.
Artists Flee To Bandcamp After Royalty Concerns
- Artists began leaving Spotify and releasing music on Bandcamp or their own sites in response to perceived unfair pay.
- Liz Pelley exposed 'perfect fit' content and studio session deals that replaced royalty-bearing tracks with cheaper licensed background music.
AI Music Allowed Unless It’s Fraud
- Spotify allows AI-generated music unless it constitutes fraud or impersonation, creating quality and rights concerns.
- The platform won't ban AI content outright, only stepping in for impersonation or clear fraud cases.