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4 Case W. Res. J.L. Tech. & Internet 207 (2012-2013)
Saving the Spotify Revolution: Recalibrating the Power Imbalance in Digital Copyright

handle is hein.journals/caswestres4 and id is 213 raw text is: JOURNAL OF LAW, TECHNOLOGY& THE INTERNET - VOL.4 - No.4 - 2012
SAVING THE SPOTIFY REVOLUTION:
RECALIBRATING THE POWER
IMBALANCE IN DIGITAL COPYRIGHT
E. Jordan Teague,
ABSTRACT
Many believed that Spotify would revolutionize the music
industry, offering a legal alternative to file sharing that compensates
musicians for use of their digital music. Why, then, have artists been
abandoning the Spotify revolution in droves? Because the revolution
has a dark side. Since Spotify is partly-owned by major record labels,
it has a serious conflict of interest with independent artists. Spotify's
lack of transparency about its financial flows gives musicians further
reason to question whether the service has their interests in mind,
particularly in light of the microscopic royalties Spotify has paid
artists to date. This climate of suspicion has caused many artists to
abandon the service and pursue alternative means of digital
distribution and promotion.  Even listeners have begun leaving
Spotify on account of how it treats artists. Ironically, Spotify has
managed to alienate the very audiences it needs as allies: artists, who
supply Spotify's unlimited song library; and listeners, who fund the
service through subscriptions and advertising. As such, the Spotify
revolution is destined to fail- an unfortunate reality, as the streaming
music business model has great potential to benefit artists and serve
the underlying goals of copyright.
I argue that the most effective way to save the Spotify revolution
is through a compulsory licensing scheme.   This is because the
primary impediment to Spotify changing its treatment of artists is its
insulation from competitive pressures, which ultimately stems from
the major labels' formidable bargaining position in digital sound
recordings.  The labels have assumed a gatekeeping function in
streaming music, demanding corporate equity in exchange for access
to their sound recordings, which every streaming service needs to
build a comprehensive catalog. As a result, the streaming music
market has very few participants, all of which are partially controlled
1.  Jordan Teague is an associate at Burr & Forman LLP in Birmingham,
Alabama. She received her J.D. in 2012 from Vanderbilt University
Law School, where she was the Senior Technology Editor of the
Vanderbilt Journal of Entertainment and Technology Law. Jordan
received her B.A. magna cum laude in Mathematics-Economics from
Furman University in 2005.

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