Spotify has denied a reported hack could make you rich.
The streaming giant has shot back at the JP Morgan-backed theory that if subscribers listened to their own 30-second tracks on repeat all day they could make up to £1,200 per month, insisting that is not how the royalties scheme plays out.
Daniel Ek, the company’s CEO, posted on X, the social media brand formerly known as Twitter: "If that were true, my own playlist would just be 'Daniel's 30-second Jam' on repeat!
"But seriously, that's not quite how our royalty system works."
The scheme was first reported by the Financial Times amid concerns that inflated streaming - where people play certain songs again and again - was negatively affecting the music industry, and executives from the bank asserting that up to 10 per cent are a sham.
Last week, Svenska Dagbladet, a Sweden-based newspaper published allegations that organised crime groups were using the scheme to launder money made through their illicit affairs like drug dealing.
Spotify have outlined their royalty arrangement on their website
The description reads: "Contrary to what you might have heard, Spotify does not pay artist royalties according to a per-play or per-stream rate.
"The royalty payments that artists receive might vary according to differences in how their music is streamed or the agreements they have with labels or distributors."
Universal Music and Deezer recently unveiled their collaboration to bring about an artist-centric streaming model in a bid to better reward artists and music.
