Spotify’s not just a music service anymore; it’s a wild blend of AI, low payouts, and licensing headaches.
Spotify stands tall as one of the premier music streaming platforms, boasting hundreds of millions of users. Though its free plan and user-friendly interface attract listeners, the service has challenges that could reshape how users engage with music. Despite a rich catalog that includes not just music but also podcasts and audiobooks, the platform’s shortcomings can lead to some uncomfortable revelations for users.
One major issue is the rise of artificial intelligence in music production. While the platform hosts over 100 million tracks, not all of these come from human artists. An investigation by The Guardian in July 2025 highlighted the band Velvet Sundown, which has been generating music using AI. They launched two albums that month and quickly racked up millions of streams. Despite Spotify’s pledge in September 2025 to enhance protections against AI-generated content, tracks like those of Velvet Sundown remain unmarked, leading to potential confusion for listeners.
Additionally, another artist, JD Steel, employs AI-generated images and music but lacks a clear description on their Spotify page. With over 75 million spam tracks allegedly removed from the service, concerns about the presence of AI-generated content linger.
Compensation for artists also poses a significant issue. Spotify’s payment model distributes revenue based on stream share, meaning that payouts fluctuate and are not fixed per stream. Estimates indicate Spotify’s average payout per stream hovers between $0.003 and $0.005, which places it among the lowest-paying streaming services. For example, a 2024 report revealed that Spotify paid approximately $3 per 1,000 streams, while competitors like Apple Music and Amazon Music offer higher payouts.
Another point of contention is the effectiveness of Spotify’s music recommendation algorithms. Critics argue that rather than expanding musical horizons, these algorithms largely recycle familiar sounds. An article by MIT Technology Review noted that Spotify’s personalized playlists often favor familiar tracks over new discoveries. This repetitive listening experience can lead to user frustration, as many feel the AI DJ feature plays it safe by sticking to known favorites.
Moreover, while Spotify offers a vast library of music, users must understand that they don’t actually own the songs. Subscribing to the Premium plan means users are essentially renting music with no guarantee of indefinite access. Songs can be removed at any time due to licensing changes, creating an unstable experience compared to purchasing tracks outright.
Lastly, Spotify’s expansive catalog doesn’t mean it has every song ever produced. Many popular artists have opted to remove their music from Spotify over the years due to concerns regarding royalties or company practices. For instance, Neil Young and Joni Mitchell pulled their catalogs in 2022, while Taylor Swift made a similar move in 2014. In September 2025, several artists took action against Spotify’s CEO for investing in an AI military defense venture, demonstrating ongoing tensions between artists and the platform.
