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The New Music Business with Ari Herstand
Spotify Commissioned Cheap "Fake Artists" And She's Got the Proof
This week Ari sits down with Liz Pelly, a prominent music journalist and author of the new book Mood Machine: The Rise of Spotify and the Costs of the Perfect Playlist. Liz’s journalism has appeared in NPR, The Guardian, and Pitchfork among other prestigious publications. Preceded by an exposé in Harper’s Magazine, Pelly’s latest work, Mood Machine, pulls back the curtain on Spotify’s exploitative practices and uncovers how those practices impact artists and listeners.
In this episode, Liz gives the low down on research she conducted for the book and explains how Spotify has unfairly conspired with major labels since its launch. As she does in Mood Machine, Liz calls out Spotify’s Perfect Fit Content (PFC) program and explains how its use of ghost artists degrades the integrity of their model for all. Ari and Liz discuss the value of music and how that can differ in the eyes of major corporations and individuals. Whether you’re an artist, label, or listener who uses Spotify, this episode will help you understand the impact Spotify’s model has on your relationship to music.
https://www.instagram.com/lizpelly
Harper’s article: https://harpers.org/archive/2025/01/the-ghosts-in-the-machine-liz-pelly-spotify-musicians/
Chapters
00:00 The Inner Workings of Spotify
12:48 Ghost Artists and the PFC Program
37:50 Spotify's Launch and Major Label Relationships
41:26 The Evolution of Streaming Contracts
44:14 Valuing Music: A Cultural Perspective
49:43 The Impact of Streaming on Music Value
56:10 Algorithms and the Personalization of Music
01:01:20 The Role of Music in Society
01:07:23 Future Solutions for Musicians
01:19:38 Defining Success in the New Music Business
Edited and mixed by Ari Davids
Music by Brassroots District
Produced by the team at Ari’s Take
Order the THIRD EDITION of How to Make It in the New Music Business: https://book.aristake.com
More episodes
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18. How Bandcamp is Thinking About Superfans
01:07:48||Season 6, Ep. 18This week on the New Music Business podcast, Ari sits down with Dan Melnick, the General Manager of Bandcamp. One of the earliest direct-to-fan platforms, Bandcamp empowers listeners to support artists they love directly. They have enabled fans to pay over 1.49 billion dollars and 193 million dollars directly to artists last year. Over 75k records get sold on this superfan platform every day and over half a million fans buy at least one thing on Bandcamp each month. In this episode, Dan explains to Ari how and why Bandcamp is still growing after 17 years. He shares where the company’s headed, and why its download model has continued to thrive, despite the fall of downloads on platforms like iTunes. Dan also highlights how artists can use Bandcamp to bolster their release strategies, and Ari shares some of his favorite, lesser-known features of the site. Take a listen to find out how Bandcamp’s direct-to-fan platform can help you connect with fans and monetize your fan relationships.https://bandcamp.com/ Chapters00:00 Building a Sustainable Music Career05:00 The Power of Bandcamp09:59 Understanding Bandcamp's Growth15:06 Direct-to-Fan Relationships19:53 Innovations in Bandcamp24:45 Community and Engagement on Bandcamp30:03 Best Practices for Artists on Bandcamp36:25 Merchandising Beyond Music: The Power of T-Shirts39:28 Navigating the Streaming Landscape: Bandcamp vs. Spotify48:25 Building a Sustainable Career: Strategies for Artists56:11 Understanding Bandcamp's Business Model: Fair Trade Music01:02:36 The Evolution of Curation: Bandcamp's Editorial Approach01:05:20 The Future of Bandcamp: Building Sustainable CareersEdited and mixed by Ari DavidsMusic by Brassroots DistrictProduced by the team at Ari’s TakeOrder the THIRD EDITION of How to Make It in the New Music Business: https://book.aristake.com17. Don't Cut Your Drummer Into Publishing...
26:37||Season 6, Ep. 17In this solo episode of the New Music Business podcast, Ari untangles the complexities of royalties, registration, and publishing. After his social media video with the same message (“Don’t cut your drummer into publishing”) went viral for the wrong reasons, Ari wanted to come on the show and break down the nuances of this advice. Tune in to get clear on the differences between publishing royalties and master royalties, which royalties session musicians are legally due, the importance of one-stop agreements, and how to fairly (or, more so, generously) compensate your session musicians.Read the article on Ari’s Take: https://aristake.com/publishing-royalties/Chapters00:00 Understanding Music Publishing and Royalties02:55 The Role of Session Musicians in Music Creation05:55 Differentiating Between Master Royalties and Publishing09:09 The Importance of One-Stop Agreements11:59 Fair Compensation for Session Musicians15:12 Changing Industry Standards17:46 How Publishing Royalties Work Within Bands20:13 Why Session Musicians Are Not Considered Co-Writers22:20 Legally Entitled Radio Royalties for Session MusiciansEdited and mixed by Ari DavidsMusic by Brassroots DistrictProduced by the team at Ari’s TakeOrder the THIRD EDITION of How to Make It in the New Music Business: https://book.aristake.com16. How Publishing Works and Songwriters Get Paid
01:07:51||Season 6, Ep. 16This week on the New Music Business podcast, Ari sits down with Jacob Paul, the VP of Platform Growth & Brand Strategy at Kobalt and KOSIGN. Jacob has been one of the leaders behind Kobalt’s new admin publishing platform, KOSIGN, since its public launch in February 2025. Kobalt has been disrupting the traditional publishing model for years. Now their application-based platform, KOSIGN, is doing the same in the admin publishing space.In this episode, Jacob explains how Kobalt and KOSIGN approach publishing differently than traditional publishers and admin publishers. Along the way, he and Ari completely break down how music publishing works. They touch on: how songwriters get paid, the difference between “artists” and “songwriters,” the difference between publishers and admin publishers, and how creators can be sure they’re not leaving any money on the table. Jacob also shares why it’s advantageous to have a publisher or an admin publisher instead of just working with a PRO or MRO. If you have questions about music publishing (and let’s be real, who doesn’t?), this episode’s got you covered. https://www.kosignmusic.com/ Chapters00:00 Understanding Music Publishing and Royalties05:07 The Role of Kobalt in Music Publishing10:10 Distinguishing Between Artists and Songwriters14:51 The Importance of Publishing for Songwriters19:53 Kobalt's Innovative Approach to Publishing25:03 Exploring Traditional vs. Admin Publishing Deals29:56 The Launch of KOSIGN and Its Impact on Indie Songwriters35:43 The Rise of Independent Artists40:23 Understanding Publishing and Royalties45:35 Navigating the Complexities of Publishing Administration51:10 The Role of KOSIGN in Empowering Songwriters56:25 The Future of Music Publishing and Artist OwnershipEdited and mixed by Ari DavidsMusic by Brassroots DistrictProduced by the team at Ari’s TakeOrder the THIRD EDITION of How to Make It in the New Music Business: https://book.aristake.com15. This Superfan Platform Gets Artists Paid 10x+ What They Make From Streaming
01:06:24||Season 6, Ep. 15This week on the New Music Business podcast, Ari sits down with Mag Rodriguez, the founder and CEO of the direct-to-fan platform EVEN. Throughout his career, Mag has helped artists generate over 1 billion streams—but now, he’s focused on building a parallel music economy where artists sell directly to fans before streaming. “Superfan” platforms like EVEN are redefining how artists monetize their work.Through EVEN, Mag has partnered with J. Cole, 6LACK, LaRussell, Lauren Jauregui, Fariana, Smino, Ryan Leslie, and thousands of other artists of all levels, empowering them to take ownership of their fan relationships and unlock new revenue streams. They’re essentially putting control and earnings back into the hands of artists.In this episode, Mag tells Ari about artists who don’t have many followers or monthly listeners, but are making significant revenue from their fans on EVEN. They discuss the previous eras of direct-to-fan platforms (like Bandcamp, Patreon, Kickstarter) and how EVEN’s music-centric model differs from these prior iterations. Superfan platforms are truly taking the industry by storm—Mag tells Ari that EVEN, alone, onboards about 8,000 artists each day. If you’re interested in exploring superfan platforms, this episode is a great place to start. Check out EVEN at: get.even.bizChapters00:00 The Challenge of Monetizing Music for Emerging Artists02:57 The Rise of Direct-to-Fan Platforms05:58 Understanding Even: A Direct-to-Fan Platform08:55 Windowing and the Shift in Music Distribution11:54 The Economics of Music Sales vs. Streaming15:12 Selling Access: The Community Aspect of Even18:00 Building Community: The Even Triangle21:04 Real Success Stories: Emerging Artists on Even24:00 Emotional Commerce: Connecting with Fans26:57 The Future of Music Monetization35:10 The $1,000 Album Phenomenon38:36 Sustainable Revenue Models for Artists40:16 Data-Driven Insights for Artists44:27 The Journey to Building Even51:12 Navigating Major Labels and Independent Artists54:23 Operational Framework for Artists and Labels01:00:07 Community Engagement and Fan Interaction01:04:24 Defining Success in the New Music BusinessEdited and mixed by Ari DavidsMusic by Brassroots DistrictProduced by the team at Ari’s TakeOrder the THIRD EDITION of How to Make It in the New Music Business: https://book.aristake.com14. Lyor Cohen on YouTube Music's Future and the Music Industry's Past
40:01||Season 6, Ep. 14This week, Ari is joined by Lyor Cohen, the Global Head of Music at YouTube. Earlier in his career, Lyor led Def Jam Recordings, where he worked with artists such as Jay-Z, Ja Rule, and Ludacris. He eventually sold Def Jam to Universal and helped create the Island Def Jam Music Group. After Def Jam, Lyor became Chairman and CEO of Recorded Music at Warner Music Group. He went on to co-found 300 Entertainment (repping artists like Fetty Wap and Young Thug) before landing at YouTube in 2016.In this episode, Lyor and Ari discuss artist development, the state of the industry, and music’s digital revolution. Lyor shares what it was like to lead Warner Music at a time when both Spotify and YouTube launched. If you’re curious about the trajectory of tech in music, how generative AI can bring artists and fans together, or how you can use YouTube to build momentum in your career, this episode is for you.Chapters00:00 The Pursuit of Artist Success05:23 Navigating the Music Industry Landscape12:11 User-Centric Approach in Music20:34 Building Artist Communities27:14 The Evolution of Music Consumption33:30 Embracing Generative AI in MusicEdited and mixed by Ari DavidsMusic by Brassroots DistrictProduced by the team at Ari’s TakeOrder the THIRD EDITION of How to Make It in the New Music Business: https://book.aristake.com13. Victoria Canal Attracts Her Fans for The Right Reasons
01:06:34||Season 6, Ep. 13This week Ari sits down with Victoria Canal, the rising singer-songwriter known for her deeply moving and introspective music. Victoria has performed on Jimmy Kimmel Live!, Later… with Jools Holland, and onstage with Coldplay at Glastonbury. She has won two Ivor Novello awards (including the Rising Star award) and recently released a new album, Slowly, It Dawns.After ten hard-won years as a DIY artist, Victoria’s now signed with a major label, Parlophone Records (under Warner Music Group). In this episode, Victoria opens up about her journey as an artist and the varying pressures faced by both indie and label-repped musicians. Tune in to learn more about headlining the Troubadour, life as a touring artist, managing the pressures of social media, and how to attract the right kinds of fans. https://www.victoriacanal.com/ Chapters00:00 From Glastonbury to Stardom03:11 The Journey of Victoria’s Career05:49 Creating Intimate Connections Through Music08:50 The Reality of Touring Economics11:56 Balancing Artistry and Business14:58 The Emotional Journey of Songwriting18:07 Evolving Through Performance20:55 The Impact of Social Media on Artists24:09 Navigating Vulnerability in Performance27:14 The New Album: Slowly, It Dawns30:05 Reflections on Growth and Authenticity36:23 The Inner Journey of Self-Acceptance39:50 Meeting Idols: Reality vs. Expectation40:45 A Dream Come True: Performing with Coldplay45:04 The Importance of Energy in Performance46:06 Navigating the Artist Lifestyle and People Management49:03 The Weight of Fan Interactions54:06 Social Media Pressures and Authenticity01:01:19 Taking a Stand: Performing at the Kennedy Center01:05:39 Defining Success in the Music IndustryEdited and mixed by Ari DavidsMusic by Brassroots DistrictProduced by the team at Ari’s TakeOrder the THIRD EDITION of How to Make It in the New Music Business: https://book.aristake.com12. Transviolet on Surprise China Fame, Softcore Millennial Cringe and Touring in an RV
01:10:56||Season 6, Ep. 12This week on the New Music Business podcast, Ari sits down with Sarah McTaggart from the hit alt-pop band Transviolet. Transviolet exploded onto the scene in 2015 with their breakout single “Girls Your Age” with Epic Records. The band moved between a couple labels throughout their career, but they’re now independent. Transviolet has played Late Shows with Colbert and James Corden; they’ve had notable syncs including the Pretty Little Liars theme song; they’ve played huge festivals like SXSW, Governor’s Ball and Firefly; and they recently released their fourth studio album, Softcore.Sarah tells Ari about Transviolet’s experiences working with a major label and how things have changed since going independent. They talk about the ins-and-outs of touring (including Transviolet’s upcoming US tour), how the band got started, and a brilliant guerrilla marketing technique they used to promote one of their early releases. Transviolet also had the surprising experience of finding out they were big in China (hot tip: you might be too). Tune in to find out how they discovered they were big over there and how you can check for yourself, too.https://transviolet.com/Chapters00:00 The Evolution of the Music Business02:53 Transviolet's Journey to Independence06:02 The Creative Process Behind 'Softcore'08:54 Exploring Vulnerability in Music12:12 The Duality of Persona15:09 Navigating Relationships and Personal Growth17:50 Marketing Innovations in the Music Industry21:11 The Impact of Major Labels vs. Independence36:13 Redefining the Artist's Team39:34 The Evolution of Digital Marketing in Music44:14 Navigating Social Media's Impact on Music51:07 Exploring International Touring Experiences57:21 The Dynamics of Touring and Band Changes01:08:28 Creating Art: The Journey of Songwriting and ProductionEdited and mixed by Ari DavidsMusic by Brassroots DistrictProduced by the team at Ari’s TakeOrder the THIRD EDITION of How to Make It in the New Music Business: https://book.aristake.com11. Euphoria Music Supervisor Gives a Sh*t
01:11:10||Season 6, Ep. 11This month, for Women's History Month, we are replaying some of our favorite New Music Business episodes featuring incredible women of the industry. This episode highlights star music supervisor Jen Malone. She has placed music and worked on Euphoria, Atlanta, Creed 2, The Resident, Boomerang, Baskets, Shelter, Lady Dynamite, Step Up, and more. Jen has over a decade of highly esteemed experience in the industry.In this episode, Jen goes into depth about what music supervisors do and the business of sync licensing. She gives great advice on how independent artists can get their music synced and things to look out for in contracts and fee negotiations. If you want to know how to pitch your music to supervisors with the best chance of striking a deal, this is the episode for you.Chapters00:00 The Journey to Music Supervision02:55 Navigating the Music Supervision Landscape05:59 The Role of a Music Supervisor08:55 The Evolution of Music Syncing12:00 Tools of the Trade14:59 Finding and Pitching Music18:00 Understanding Music Ownership21:08 The Process of Music Supervision in TV and Film24:05 Collaboration with Composers27:09 The Differences Between Film and TV Music Supervision33:40 Managing Multiple Projects35:21 The Role of Personal Taste in Music Supervision37:22 Juxtaposition in Music Placement42:26 Impact of Music Placements on Independent Artists46:04 The Evolution of Sync Licensing50:19 Workflow and Project Management in Music Supervision51:59 Differences in Working with Streaming Platforms vs. Traditional Networks54:30 The Importance of Fair Compensation for Artists58:03 Protecting Artist Rights in Sync Licensing01:03:42 Advice for Independent Artists in Sync LicensingEdited and mixed by Ari DavidsMusic by Brassroots DistrictProduced by the team at Ari’s TakeOrder the THIRD EDITION of How to Make It in the New Music Business: https://book.aristake.com10. Imogen Heap is Building a More Equitable Future for Musicians
56:25||Season 6, Ep. 10This month, for Women's History Month, we are replaying some of our favorite New Music Business episodes featuring incredible women of the industry. This episode highlights award-winning artist, songwriter, and producer, Imogen Heap. Imogen Heap has released five solo albums, an album as one half of Frou Frou, and has collaborated with countless other stars including Taylor Swift, Nitin Sawhney, Deadmau5, Eric Whitacre, Jeff Beck and Jon Hopkins. Heap, recognized as an artist’s artist, has won two Grammys and an Ivor Novello award. She holds three honorary doctorates for her work on ‘MI.MU gloves’ and ’The Creative Passport’—two prominent music tech companies that work to empower creatives. In this episode, Ari and Imogen discuss NFTs, metadata and payment transparency and how to properly credit (and pay) creators using the blockchain. Overall, how to make the future of music more equitable for musicians.Chapters00:00 The Fragmented Music Industry02:52 Imogen Heap: A Pioneer in Music and Technology05:55 The Creative Passport: Empowering Artists09:11 Data Transparency and Royalty Distribution12:04 The Role of DSPs and Data Integrity14:52 The Future of Music Royalties17:55 Building a Better Music Ecosystem21:02 Blockchain and the Future of Music23:46 Interoperability and Charitable Contributions29:06 Navigating NFTs and Environmental Concerns34:23 The Future of NFTs in Art37:12 Building a Community Through Technology46:58 AI as a Creative Partner54:36 Defining Success in the New Music BusinessEdited and mixed by Ari DavidsMusic by Brassroots DistrictProduced by the team at Ari’s TakeOrder the THIRD EDITION of How to Make It in the New Music Business: https://book.aristake.com