Spotify, the music streaming giant, has revolutionized the way we consume music, offering users access to millions of songs at their fingertips. However, a new book, Mood Machine, by Liz Pelly, lifts the lid on the company's inner workings, revealing a dark side to its business model that exploits artists and undermines the music industry.

The book chronicles the history of Spotify, from its early days as an advertising company to its current dominance of the music streaming market. Pelly's research, which includes interviews with Spotify employees and internal Slack messages, paints a picture of a company that prioritizes profits over people. One of the most damning revelations is the existence of "ghost artists," also known as "fake artists," who are commissioned by Spotify to create "perfect fit content" music that matches the company's playlists. This cheap, manufactured music is designed to be background noise, rather than art, and is used to pad out Spotify's playlists, reducing the need to pay royalties to real artists.

The book also sheds light on Spotify's "Discovery Mode," a feature that allows artists and labels to accept lower royalty rates in exchange for more promotion on the platform. While this may seem like a good deal for artists, it has led to a situation where major labels have more control over the platform, and independent artists are left struggling to make ends meet. In fact, Pelly cites a Spotify chart that shows the company made 61.4 million euros in gross profit from Discovery Mode between May 2022 and May 2023.

Another issue highlighted in the book is the problem of streaming fraud, where fake artists and scammers use bots and other tactics to artificially inflate their streaming numbers, earning them more money and pushing real artists down the charts. Pelly argues that Spotify's solution to this problem, demonetizing tracks with less than 1,000 streams, only serves to benefit major labels and further marginalize independent artists.

The book's author, Liz Pelly, is a firm critic of major labels and their sway over Spotify. She suggests that one way to deal with the industry's problems is to break up the big three labels – Sony, UMG, and Warner Music – which control 70 percent of the recorded music market. Pelly also proposes a range of alternative solutions, including universal basic income, music co-ops, artist-run platforms, and library-owned streaming platforms centered on local music.

The implications of Mood Machine are far-reaching, and the book serves as a wake-up call to the music industry and its fans. While Spotify may offer users a tremendous bargain, the cost is being borne by artists, who are struggling to make a living in a system that prioritizes profits over people. As Pelly notes, "What happens to musicians happens to all other types of creative people, just a little later." The book is a timely reminder that art and commerce are often at odds, and that the music industry's problems are a reflection of broader societal issues.

In conclusion, Mood Machine is a must-read for anyone interested in the music industry and its future. Pelly's meticulous research and sharp analysis offer a damning indictment of Spotify's business model and the ways in which it exploits artists. As the music industry continues to evolve, it is essential that we prioritize the needs of creators and work towards a more equitable system that rewards artistry and innovation.