Why Spotify Is Crashing

Spotify is back in the headlines this week as it was announced the streaming giant is AXING 1,500 more jobs.
Daniel Ek said he had made the "difficult decision" despite a profitable last quarter, as he seeks to control costs.
Among these are the high music licensing fees that labels charge, and vast sums spent on exclusive content, including podcasts with Joe Rogan, the Obamas and Harry and Meghan.
Is Spotify being greedy by putting profit before people or is this move required to ensure that their business model is sustainable?
Let us know your thoughts in the comments below!
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Hey! I'm Damian Keyes and I've worked with musicians every day of my life for the past 20 years. The internet is de ply untrusting understandably and here is my background so you can have the full picture.
When I was 18, I was signed to a major label and at 23 I co-founded a Music University in Europe called BIMM (valued at $300M). I'm also a bass player, I've played for a number of artists including Eric Clapton, Alanis Morrisette and Billy Cobham. I initially retired at 30, but realised that life gets boring if you're not building!
I have always been in-between the music industry and education which is how I ended up building my KZbin channel - I've been teaching artists how to release music long before it was a 'niche'! I now educate artists around the world with my Academy, KZbin channel and Social Agency.
It's great to meet you and looking forward to working together on your music!

[@ArielX2K]

I used to defend Spotify, but after a number of reports revealing Daniel Eks and co. being corporate pigs, never again. The monopolist landscape needs to be razed.

[@zealousie]

Nah. The people need to unify globally and monopolize everything via capitalism by starting their own democratically operated social media corporation owned in equal share by all living humans in perpetuity. Then capitalism will end via the people problem-solving their way into an abundance state.

[@caseyjones3522]

yeah no that's never going to happen. "The people" organizing is like herding cats.@@zealousie

[@zealousie]

Yeah.... if only they all didn't think exactly that. Then they could organize themselves.

[@caseyjones3522]

we had Occupy Wall Street, that turned out great. But maybe musicians need a legit union like what happened with the Writers Strike. Well, problem is, people spend a lot more time watching Netflix than listening to Spotify so there's not quite enough leverage there.@@zealousie

[@ChristopherJamesEdward]

Streaming is a rip off. Everything should be permanently downloadable.

[@max-cs4pz]

was quite the regular Joe Rogan consumer, but as I don't use Spotify a lot I hardly watched any Joe Rogan podcasts anymore... also because the best part of a KZbin podcast is the comment section, which is not available in spotify

[@Fablebox]

I still feel that Spotify and Apple Music are nothing more than modern day radio stations. They can help you get discovered, but that is all they are worth. Working on new ideas for releases, but great video!!!

[@Yahushaislife]

To the owners making billions of dollars it’s worth a lot more than that

[@myturningpoint]

No matter what happens, the artists ALWAYS get shafted, without question.

[@millennialanimal]

Stop looking to the mainstream to treat you fairly, it will never happen.

[@benjammin105123]

Spotify disgusts me.

[@AdamBrucass]

Im curious as to why, if you don’t mind talking about it Realistically the way i see it, if an artist isnt big enough to bring listeners to their platform and get the number of streams it takes for Spotify to want to pay them, then their music holds no monetary value to Spotify and they shouldn’t be expected to pay for it, no other business in the world would be expected to buy a product they cant sell just on the principal of “but you paid a lot for that other item” even though that other item has sold 30m units, if anything spotify are doing independent artists a service and a favour by hosting their music on the platform even though it doesn’t do anything for them

[@crawdad_smoker001]

Y'know, the funny thing is....the only time I'm on Spotify lately is to listen to music. And really, only because my CD player doesn't work. I miss my record player and my vinyl. Soon.......

[@DamianKeyes]

I'm all in on vinyl! I love it!!🙂❤

[@VikingGoblin]

Rasing prices cant be that bad though, I feel like its realistically the only solution to Spotify having more profit and artists getting paid more per stream

[@DamianKeyes]

Fingers crossed the artists do get more 🙂🙂

[@Ruinwyn]

They do need to raise prices both to stay afloat and to be able to pay more per stream. Problem is of course that it will drop the number of subscribers and as a result the number of streams. The possibility that casual users move to a cheaper competitor or one that provides more than music (KZbin Premium +Music is about the same price, Amazon Prime is cheaper) and only the heavy users remain is also a big risk. Currently average Spotify user streams about 10 hours more (~26h) a week than YTM, Amazon, or Apple (~11-16h) user. If the rising prices makes it not worth the cost for those around that 10-15h mark and they switch, that gap will continue to grow. Users pay by month, but Spotify pays by stream.

[@officialWWM]

lol, what makes you think the artists will see any of that money? 😂

[@DRUNKBEATZ]

@@DamianKeyes dude come on, the CEO Daniel EK invests 100 Mil in a AI military firm called Helsing instead of giving af about artists. dont be naive here

[@ginnyveeofficial]

I'm getting way better organic success on Apple - especially since Spotify seem to be getting more restrictive. I'm switching all my efforts to Apple I think

[@DamianKeyes]

Very interesting. I think I should do a video about Apple and the pro's and cons! Thanks for letting me know! 🙂🙂

[@ginnyveeofficial]

Just seems way more "organic" - I've never pushed anything to it and well.. it just keeps organically growing @@DamianKeyes be great to see a video on this - looking forwards to if you do one !!

[@Mavesound]

I find it so hard to perform well on apple

[@ginnyveeofficial]

@@Mavesound It's odd ... it just suddenly started to go up - no push - I think - and think only that I got a ton of Shazams because I did a the remake of Flashdance with Irene Cara ... and that may have triggered the start of it (but that was Austria) - but most of the views are USA, UK, Mexico - not markets I've pushed my music heavily to. I just can't explain it

[@matthughesrocks]

It doesn't bother me.

[@danmcbmusic]

None of this is even slightly surprising. As I've been saying since several years, the business model was unsustainable from the start. After however many years of loss making because of that, shareholders are getting pissed and it is gonna get still more ugly because Ek is trying to bail a ship with so many holes, all he can do is start kicking the crew overboard.

[@MutableCell]

Me and my band, Panspermial, we are putting our efforts on the Apple Music platform since last summer and with much better results.

[@DamianKeyes]

listening to your latest single now,, love the energy, it gives me some Primus vibes.. I love Primus!

[@MutableCell]

Thanks Damian, we appreciate your words! I follow your work always learning a lot through you! 🔥

[@BrotherWife]

Think our Spotify might be Broken as well

[@godbyone]

I guess niel young threat didn’t work

[@DamianKeyes]

Yeah Maybe Neil Young will replace his Elk meat!

[@elationships]

This is your best video yet. So insightful, so helpful. Love it.

[@TheWorldsNo1Superstar]

Love the filter! You make color look good Damien. We're busy working on the release of our upcoming album and videos to be worried about what happens to one streaming service. Let's Dance!!!

[@DamianKeyes]

Thanks so much! I'm ready to dance... even if i dance like a dad!

[@TheWorldsNo1Superstar]

@@DamianKeyes Knowing you, You'll give us a show to remember for a lifetime! All the Best and Thank you, Thank you for the wisdom! We love learning from you!

[@MA-wq2xc]

Thanks for the video! Loved the long form format btw you posted before btw. Also, really waiting for the "how to release a single in 2024" 🙏

[@ChrisHardyWorld]

As far as I'm concerned, spotify can disappear altogether and I wouldn't be able to muster up one single fuck about it.

[@riodejaneiro664]

Damo as a newsman. He is looking out for all of us. Thank God. I'm so busy that I don't have the time to look out for myself. Music has always been a full time job even gor yhose what have full time jobs to support our music.

[@OneDominion]

Spotify should start its own festival. live music will always win.

[@AdamBrucass]

100% Its so easy to to get lost in the idea that streaming numbers is what you need to focus on for success, but if you want to get those numbers up what you should be doing is getting out in front of people and playing the songs live in place where people expect and look to hear new music, then use that exposure to get people to go and listen on spotify or another platform, so many people have it backwards

[@OneDominion]

@@AdamBrucass yup. oh whale ;) survival of the fittest! 😂

[@OneDominion]

@@AdamBrucass they would also be the biggest live platform for new artist

[@SilverKen15]

live music sucks

[@secretarchivesofthevatican]

From the very first day they existed it was pointed out that Spotify (and all the other streamers) have an intrinsically doomed business model. Whatever percentage of their income is distributed to rights holders is eternally diluted as 100,000 new tracks get added each day to streaming services. They can choose to not pay for half of the music...but new music is still being added and diluting the pot every day. They'll hit the same financial buffers again a few months down the line. It literally is unsustainable. Ek is a very bad businessman. An entirely new business model is required.

[@DamianKeyes]

It does seem like the days of these businesses that rely on growth and income instead of profit have huge issues now that money isn't as cheap as it was. I liken it to someone tripping over something. They know they are going to fall but they make it worse by starting to run in order to balance. This just prolongs the fall and makes the collision worse.

[@Ruinwyn]

I think Spotify can't really survive as is, and isn't in very good position to change enough to survive. Most other streaming services are in better position and can survive by bundling with other services for higher price or reduced service.

[@AdamBrucass]

Its almost like a Ponzi scheme in that respect, i think they should just be more selective about what music makes it on to the platform, effectively like a record label but without fully becoming one

[@SoundByVinny]

Hello - I joined your programme ( very good so far!!) but i got charged twice - where can I get in contact to sort this error? Thanks again for all your content its top tier

[@DamianKeyes]

Hi there, I’m so sorry that has happened can you email Mirella and she can look into it for you. Her email is [e-mail] Great to have you on board, don’t forget to join the exclusive Facebook group and come say hi on one of the weekly live sessions. 😊😊

[@SoundByVinny]

Thank you @@DamianKeyes !

[@drmacxofgod]

I just like listening to Damian... music is so hard I forget the nuggets and just enjoy his video

[@officialWWM]

Why does it take so many people to run that company anyway? I mean, what the hell does everyone do all day?

[@es4582]

Love what you’re saying! But Joe rogan don’t buy elk meat, he HUNTS it! 😤

[@DamianKeyes]

Lol Such a good point! That video of him shooting the Tesla Cyber Truck with his hunting crossbow was so cool!

[@SaeedAlsomali-u3n]

Unreasonable expectations are a sure way to make yourself miserable. Let’s say you have a goal in mind, you’re thinking about how to attain it, you’re working toward accomplishing it, and you’re going to get some kind of reward in return for all of your work. The reward can be anything, really. Maybe you’re expecting something material like money. Maybe it’s not so material. Maybe you’re expecting something intangible like respect from a particular person or even a feeling of happiness and accomplishment. The problem with expectations is that none of them are particularly reasonable. An expectation is a hope in the future that you will get something that you want, and we don’t always get what we want. Sometimes we just get what we get. Sometimes we get nothing at all.

[@KyleValet]

Ty Damian that was rocking........I think this spotify thing is a positive move forward for more quality art getting quality pay....you know no one listened to me when I was young MUCH less get fucking paid for it.....hell to the no!!!...get paid when your art is truly blossoming and your not just delivering production and banners....shit people can pay for.....Good song writing is supposed to be King!!!!

[@caseyjones3522]

Something is very sketchy with Spotify's books. There's got to be Hollywood accounting going on.

[@AdamBrucass]

I think Spotify should just embrace basically being a record label, make it harder to get music on the platform by some kind of evaluation process so there isn’t 100,000 songs being released every day and it just might mean music may actually be worth something again, and they wouldn’t have to deal with independent artists demanding money for a product thats of no value to them In fact why not split the platform, make something akin to Soundcloud where anyone can upload anything they want but don’t expect to get paid for it, but then have it also be automatically submitted for consideration to be added to the paid site, like how you submit to their playlists

[@christinebairdmusic]

That’s a good idea in theory but the problem is that money will inevitably run the game. So, talented artists who deserve to be heard but maybe don’t have the money or connections won’t be able to cut through the threshold.

[@caseyjones3522]

they can't do that, they signed a deal with the major labels that they wouldn't become a label.

[@AdamBrucass]

@@caseyjones3522 they wouldn’t have to be on paper, its not really all that far from what they’re doing now

[@AdamBrucass]

@@christinebairdmusic are you talking like an inevitable pay to submit situation? i guess i could see that happening, and i agree it wouldn’t be ideal, but as nice as it would be to live in a world where exposure and success goes to those who deserve it, thats never been the case, and i think i prefer it to the alternative of “when everyone’s a super hero, no one will be”

[@christinebairdmusic]

@@AdamBrucass I suppose I just mean… if it became a pay-to-play situation, the players with the biggest pockets would get to play the most… while many others would stay on the bench. It’s so hard to know what the right solution is 🤷🏼‍♀️

[@BryanCooperOfficial]

The Spotify business model, if there is such a thing, seems so short-termist to me. I may be missing some bigger picture here, but they seem to be making their strategy up as they go along. I wonder if we're witnessing the beginning of the end to music streaming.

[@johnnypunish]

My music art has gotten buried on Spotify. I get more interaction with fans on Soundcloud

[@ArielX2K]

Apple isn't any better, also being money hungry corporate monopolist swine. We need serious change, starting with the smashing of monopolies.

[@Javier23gol]

People who criticize Spotify just don’t put your music out there 🤷🏻‍♂️

[@TwistedIllusionUK]

I don't remotely buy into this narrative that Daniel Ek is the bogeyman of the music industry. Guy is way ahead of the game. Spotify is a data company, it ain't a music company and never will be. The sooner musicians understand that the better.

[@hrdcpy]

They are pushing Joe Rogan HARD. He's now being promoting on my Spofity home screen ABOVE my daily mixes.

[@Chronade]

Spotify is here to stay. I know if I work very hard and intelligently, I'll succeed... I heard that to be little star is better than being a sweet unknown. So pass around the bottle, and we'll share our troubles, and love will save the day!🍺

[@Tomisloove]

Hohooooooooo! Nice video Damo! Shit's goin' dooooown!

[@ganjjabarsmedium2347]

Spotify needs a change in management

[@SyntheticSentiment]

I don't have much of an opinion about Spotify other than it is absolute garbage for most artists, but this is one of the funnier viddys I've seen from you.

[@midwestdepressed]

not the BK lounge lmao #sweetandsoursauce

[@DamianKeyes]

😂 Best hashtag of the day!!!

[@bellemt]

Daniel Ek has made 3x more money from music than Paul McCartney has…

[@datemonthyear]

Good stuff, as always!

[@yllekjs76]

I wish they'd lose podcasts and audio books. I just want music

[@evidennt]

Time to move to Tidal and Apple music

[@NickKizirnis]

Joe Rogan Elk Meat ... how long before we see that band on Spotify (or BandCamp)

[@willievaughn6474]

God bless you, thank you for the update, Galatians 6:9

[@Bradleybrookwood]

I wish there was a way that I could get somebody to write me some original songs to sing. I'm a singer trying to break into the music industry and would love to collaborate with other people

[@arismakaronas4469]

First upload some short videos of your singing, it doesn't have to be anything fancy, just so that people get an idea of your voice

[@NickKizirnis]

Thanks Damian, really good update ... as much of a giant as Spotify is, somehow it feels like what they are going for might not be sustainable. But pls not Musk pls ...

[@djangomclear_rocks]

All indicators are signs of a bubble ... so, which alterantive platforms are there which do NOT follow the same buisness model? Bandcamp, soundcloud, youtube? When you consider 75% of peeps below 25 use soundcloud more than spotify this is ... telling

[@Jz2CoolDude]

@damiankeyes not to divert but here's a story flying under the radar whilst Spotify take the media heat. KZbin Music & Premium subscriptions nearly doubling in the new year. Our family KZbin sub is going from $17 to $32 here in Australia!!!

[@tomix1970pl1]

And all of them don't do any music and takes playlist place.

[@CageFreeLowFatSugarFreeRange]

An business that can be ran mostly AI is losing workers? No way jose

[@CoachellaAngel]

JRE is going on X

[@Melinaviolino]

Wow… this is the kind of gossip that I like

[@mikec.2725]

So now I understand why I won’t get my $0.0003

[@codycriswell]

When we look back in history to figure out why the music industry is absolute garbage, Spotify will be one of the most responsible.

[@wfmeredith]

Urgggh i dont know what to make of this!

[@DamianKeyes]

Yeah Spotify is such an interesting beast.

[@jacksp8de]

I think they gave Rogan 150 to 200 million

[@DamianKeyes]

I did read that, if they did that again, that deal alone would be 5 times the profit they recorded (for the first time) last quarter. Madness!

[@jacksp8de]

@@DamianKeyes it’s wild lol no wonder they came up with a threshold for artists 🤦🏾‍♂️

[@peterk3556]

I think spotify shadow banned me my streams dont count only followers

[@shadowofpain8144]

The art of not asking any hard questions so people come on your show. No value talk simps have always eaten it up.

[@thevictorapochi]

This is bad news. I doubt Elon Musk is going to buy Spotify. I think she'll get back on her feet again. Let's give her some time.

[@DamianKeyes]

I think you are right, it will be interesting to see how they deal with the podcast up coming issue and whether they lean in or out of it 🙂🙂

[@thevictorapochi]

@@DamianKeyes,I hope they learn from it. I'm an upcoming musician. I want to benefit from what the music stars have benefited.

[@kdakan]

KZbin with an adblocker is more than all I need to listen to any music I like. I even don't bother to upload my music on paid platforms that don't pay me, at least KZbin is free for people who don't want to pay, I don't feel I'm ripped off by the platform this way.

[@KazGamble]

Joe Rogan Elk meat so expensive! 😂

[@gavmurray7398]

youtube placed an add in russian on this video for me 🤣

[@thesuncollective1475]

Elon will eff it up !🤣100. Demolition Man!

[@DamianKeyes]

lol I think you are right! 🙂🙂

[@DudeSilad]

I guess you're a wokey left winger. He took over Twitter which didn't make any money. At all. He's got spacehips. I'm pretty sure he knows what he's doing. And he's got huge support amongst us normal folk.

[@United_Wings]

😮wow

[@DamianKeyes]

Indeed!

[@DRUNKBEATZ]

Im getting Big boomer vibes…

[@DamianKeyes]

Maybe... but a boomer who is winning 🙂🙂

[@StratsRUs]

Rogan is a sad representation of what is happening to the world.

[@TomBretonOfficial]

omg this was hilarious lmao!

[@dra3152]

Imagine Daniel Ek selling Spotify to Elon Musk 😂

[@SilverKen15]

Hating on Elon for owning X while Threads lost 98% of it's user interactions in the same Quarter is WILDDDDDDD

[@antonhow801]

Imagine what they could have done for artists with that podcast budget 🥱