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Reading: Spotify Fires Again At Drake: Calls ‘Artificially Inflated Streams’ Allegation Over Kendrick Lamar’s Hit Unfounded – Spotify Know-how (NYSE:SPOT), Common Music Group (OTC:UMGNF)
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StockWaves > Trading > Spotify Fires Again At Drake: Calls ‘Artificially Inflated Streams’ Allegation Over Kendrick Lamar’s Hit Unfounded – Spotify Know-how (NYSE:SPOT), Common Music Group (OTC:UMGNF)
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Spotify Fires Again At Drake: Calls ‘Artificially Inflated Streams’ Allegation Over Kendrick Lamar’s Hit Unfounded – Spotify Know-how (NYSE:SPOT), Common Music Group (OTC:UMGNF)

StockWaves By StockWaves Last updated: December 21, 2024 3 Min Read
Spotify Fires Again At Drake: Calls ‘Artificially Inflated Streams’ Allegation Over Kendrick Lamar’s Hit Unfounded – Spotify Know-how (NYSE:SPOT), Common Music Group (OTC:UMGNF)
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Spotify Know-how SA SPOT has strongly denied allegations from Drake that it “artificially inflated” streaming numbers for rival artist Kendrick Lamar’s observe “Not Like Us.”

What Occurred: In opposition papers filed, Spotify said it “has no financial incentive” to favor Lamar’s observe over Drake’s music, reported Selection.

“Marquee was bought on behalf of the tune, for €500 to advertise the observe in France. Marquee is a visible advert that’s disclosed to customers as a Sponsored Advice,” said a Spotify spokesperson.

See Additionally: Spotify’s AI Playlist Now Accessible In US, Different Nations: Right here’s How It Works

Drake’s firm Frozen Moments had beforehand filed a petition claiming that Spotify and Common Music Group UMGNF artificially boosted Lamar’s streaming numbers.

The petition alleged UMG provided Spotify a 30% low cost on licensing charges in alternate for selling “Not Like Us,” a declare each firms deny.

Earlier, Common Music Group rejected the accusations as “offensive and unfaithful,” underscoring their dedication to moral advertising practices. A UMG spokesperson said that fan alternative, not manipulation, drives streaming numbers.

Drake’s authorized staff responded by means of a press release to Selection, difficult each firms to adjust to discovery requests if they’ve “nothing to cover.”

Why It Issues: The dispute has expanded past streaming numbers, with Drake submitting a separate motion in Texas alleging defamation and improper radio promotion practices.

Neither artist is straight signed to UMG, as an alternative licensing their music by means of their very own firms – Drake’s OVO and Lamar’s pgLang – to Common labels for advertising and distribution.

Sources conversant in the matter recommend that Drake’s petition primarily targets Common — the label liable for distributing his music since his 2009 debut with Lil Wayne’s Younger Cash — somewhat than Spotify, iHeart, or Lamar himself, the report famous.

Nonetheless, the timing of the authorized motion, revolving round a tune tied to the extended feud between the 2 artists, appears removed from coincidental.

“Not Like Us” stands out as a diss observe that not solely climbed to the highest of the Billboard Sizzling 100 but additionally secured a number of nominations for the 2025 Grammy Awards.

Value Motion: Spotify’s inventory rose by 1.48% on Friday, closing at $460.88. 12 months-to-date, the corporate’s shares have skyrocketed 144.11%, considerably outperforming the Nasdaq 100 index, which has gained 28.68% throughout the identical timeframe, in line with Benzinga Professional information.

Learn Subsequent:

Disclaimer: This content material was partially produced with the assistance of Benzinga Neuro and was reviewed and printed by Benzinga editors.

Photograph courtesy: Shutterstock

Market Information and Knowledge dropped at you by Benzinga APIs

© 2024 Benzinga.com. Benzinga doesn’t present funding recommendation. All rights reserved.

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