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Mitxoda Weekly #23: Breaking Free from Spotify’s Monopoly

The struggle for indie survival in a streaming-dominated world.

Author

Mitxoda
February 28, 2025

Hello Dear Friend!

Welcome to Mitxoda Weekly #23! …and if it’s your first time, glad to have you here!

This week, we’re diving into one of the biggest challenges indie artists face: Spotify’s grip on the music industry. It’s convenient, sure, but its impact on musicians is devastating—unfair payouts, bot-driven fraud, and restrictive policies that make it harder than ever for independent artists to thrive.

I’ve been thinking a lot about the balance between visibility and integrity. Bandcamp is the most artist-friendly platform, but let’s be real, Spotify dominates. Walking away isn’t easy without a solid alternative. The good news? Change is happening. Fairer platforms exist, and the more we shift our habits, the stronger they become.

Meanwhile, indie music keeps pushing forward. A Belgian band just played Germany and is heading to the UK, and Jagged Little Pill, a raw, indie-spirited classic, once shook the industry. The music scene is evolving, and we have the power to shape its future.

So let’s talk about it. Happy reading (until the end!), and as always, thanks for being part of this journey! 🚀Mitxoda

Au menu, this week:

Currently Listening: A Better Alternative?

You know I think Bandcamp is probably the most indie platform I know. But let’s be realistic. Spotify is massive. As much as I’d love to remove all Spotify links from this newsletter right away, it’s not something I can do overnight. We can’t just exclude ourselves from the biggest platform without a solid alternative in place. That’s the tough balance every artist faces: staying visible (and viable) while avoiding feeding the beast. It’s complicated.

That’s why the shift to something else has to happen gradually, if the movement follows. And I truly believe this revolution is underway. It will take time, but we are strong, and we stay strong, thanks to our boundless creativity. And that’s why I’m counting on you too, to help push the boundaries and make real change happen.

AGBAT, for instance, moved to Tidal two years ago. Why? Better sound quality and a fairer artist payout system. Unlike Spotify, Tidal allocates $2 per month to each listener’s most-played artist, providing a more direct way to support musicians. While no streaming platform is perfect, Tidal offers a much-needed alternative to Spotify’s exploitative system.

Another exciting alternative is Subvert, highlighted by Cloud Blood. Subvert is essentially Bandcamp, but as a co-op, meaning artists are shareholders. A music platform owned by musicians rather than corporations. Join Subvert to sell your work, support artists, and shape our shared future.

(No) Mitxoda News: Let's Hear from Indie Artists!

Spotify’s policies have sparked outrage among independent artists, and they are taking a stand. Remember my Xmas song, banned for still unknown objective reasons… Here are some real-world testimonials from musicians who are frustrated with the current system:

🎸 Lewys Tivey has been targeted by bots, (like almost all of us, right?) putting his account at risk. Despite multiple reports, Spotify and Distrokid refuse to take action. His case highlights how broken and unfair the system is for independent musicians. Read his story here.

🎶 Ana & Gene criticize Spotify and SoundCloud for favoring mainstream artists while suppressing indie musicians’ visibility. They note that artists are charged to maintain their profiles while receiving little to no real benefits. According to them, live shows—not streaming—are the only viable way to earn money as an indie musician. Well, Mitxoda on stage would be nice, but I don’t see it as realistic, alone…!

📉 Brad Thomas Project slams Spotify’s new monetization policy, which will require artists to have 1,000 monthly listeners to qualify for payment. This means 89% of artists will be ineligible, and their earnings will be redistributed to bigger names.
I (Mitxoda) call this extreme capitalism, while Aliénor shares that quitting Spotify has been a relief.

🤔 Jonathan Dawkins points out that Spotify’s payout model is brutal for indie artists, funneling money to executives and major labels while leaving musicians with next to nothing. He urges listeners to support musicians directly and asks, which platforms truly have artists’ best interests at heart?

🚫 The Primary Phase Principle has completely removed their music from Spotify—not just because of low payouts but because they refuse to chase stream counts. They argue that Spotify makes artists obsess over numbers rather than creativity and question why musicians keep driving fans to a platform that doesn’t support them.

💡 KuF offers a different perspective; Spotify may not pay well, but for indie artists, it has always been tough. Music has always been an industry that takes more than it gives. Streaming platforms might not be fair, but they provide global exposure that indie artists never had before. Instead of expecting fairness from big corporations, KuF encourages artists to use Spotify as a tool to bring fans to Bandcamp and other direct-support platforms while fostering a strong indie community that supports each other.

These testimonials are just a few of the many I have heard and read in less than nine months online. I can only imagine that the list of frustrations extends far beyond these topics.

✔️ Follow Mitxoda on Bandcamp or on any another platform 
✔️ Grab my songs on Bandcamp or go old-school with a physical copy of my EP Distant and Close here 

Highlight of the Week: Hotel du Globe: A Warm Welcome in Germany & Upcoming UK Tour!

Hotel du Globe is a Belgian band inspired by the New Wave movement, reunited after 30 years during the 2020 pandemic. They released "Eyes of the Shadow," a song with 80s sonorities, and signed with Glasstone Records. They recently had their first performance in Germany, where they received a warm welcome from the KULT41 team and a fantastic audience. They expressed gratitude to Factheory for the invitation and to their Belgian fans who traveled to see them. They plan to return to Germany in 2026 and have upcoming shows in the UK this summer.

Photo from the event taken by Barna Tanko.

✍️ Take Action: Sign the Petition!

Spotify’s failure to address botted playlists and fraudulent streaming is harming independent musicians. We need to hold them accountable and demand change. Sign the petition now and help us push for a fairer music industry!

Long Read: Why It’s Time to Stop Supporting Spotify’s Monopoly

For more than a decade, Spotify has been the dominant force in music streaming. With over 640 million users, the platform has positioned itself as an essential service for listeners and artists alike. But beneath the surface, Spotify’s practices reveal a deeply flawed system, one that prioritizes corporate profit over the well-being of musicians, particularly independent artists.

It’s time to examine how Spotify’s monopoly harms the music industry and why we should be actively seeking alternatives.

The Illusion of Opportunity

Spotify promotes itself as a democratic platform where any artist can upload music and reach a global audience. But in reality, its structure is skewed in favor of major labels and high-profile artists. The platform’s recommendation algorithms heavily favor songs that already have significant traction, leaving independent and emerging musicians struggling to gain visibility.

Playlists are another major barrier. While landing on a major Spotify editorial playlist can skyrocket an artist’s exposure, these spots are often reserved for major-label acts. For independent artists, playlist placements are rare and unpredictable, making Spotify’s promises of ‘opportunity’ feel hollow.

Unfair Payouts: A Broken Revenue Model

One of the most glaring issues with Spotify is its notoriously low payouts. On average, an artist earns between $0.003 and $0.005 per stream. That means a song would need to be streamed 250,000 times just to earn $1,000, a threshold that is unattainable for most indie musicians.

Spotify’s recent changes to its monetization policy make matters even worse. Artists with fewer than 1,000 monthly listeners will no longer receive any royalties at all. This move eliminates income for 89% of artists on the platform, reinforcing a system where only the most streamed and popular artists benefit.

By contrast, platforms like Bandcamp allow artists to sell music directly to fans, providing a fairer revenue model. Even SoundCloud’s Fan-Powered Royalties system distributes earnings based on actual listener engagement, rather than a centralized pool that disproportionately benefits the biggest acts.

The Algorithm Trap: How Spotify Controls Listening Habits

Spotify’s power extends beyond revenue. It also shapes what people listen to. The platform’s algorithms determine what songs get recommended, added to Discover Weekly, or placed on autoplay after a user’s chosen song ends. The result? Spotify decides what gets heard, not the listener.

Indie musicians frequently report that their music gets buried unless they game the system, using paid promotions, bot-like streaming tactics, or other artificial methods to inflate their numbers. This undermines the organic discovery process that music fans and independent artists once thrived on.

Compare this to Bandcamp, where recommendations are curated by real people, or SoundCloud, where users can discover emerging artists more freely without algorithmic suppression.

Spotify’s Corporate Greed: Where Does the Money Go?

Spotify’s defenders argue that it provides a legal and accessible way to listen to music, but a closer look at its financial priorities tells a different story.

  • Spotify CEO Daniel Ek is worth over $2.5 billion, while most musicians on the platform struggle to make rent. He has now sold $666 million in stocks (on Feb 19, 2025).

  • Spotify has consistently lobbied against increasing royalty rates for artists.

  • The company recently announced it would spend $1 billion on stock buybacks, rather than fairly compensating musicians.

  • It has also invested heavily in podcasts and AI-generated content, further diluting the already minimal revenue that musicians earn.

Spotify’s focus is not on artists. It’s on profit.

Oh wait, have you seen what's happening in the UK? It's another alarming topic, this time focused on AI, and artists are reacting to it. Let’s talk about it next week, OK?

What Can We Do? Viable Alternatives to Spotify

If we want a fairer music industry, we need to change how we listen. While Spotify’s dominance can make it seem like the only option, other platforms provide better opportunities for both fans and artists.

  • Bandcamp – Direct artist support, allowing fans to purchase albums and merchandise with a high percentage going to the artist.

  • Tidal – Higher payouts per stream and an artist-centric revenue model.

  • SoundCloud – Fan-powered royalties that distribute earnings based on actual listener engagement.

  • Subvert – A rising indie platform that aims to decentralize streaming and support artists more transparently.

  • Any other in mind? Please share it with me!

Switching to these platforms, even partially, makes a difference. If listeners collectively shift their habits, we weaken Spotify’s stranglehold on the industry and push for a more equitable system.

The Choice is Ours

Spotify’s grip on the industry is only as strong as we let it be. As listeners, we have the power to demand change by supporting platforms that treat artists fairly. Independent music thrives when artists are valued and compensated for their work, not when they are forced to chase meaningless metrics for fractions of a cent.

Are you ready to break free? The future of music depends on it.

Historical Fact: Alanis Morissette's Jagged Little Pill dominates the 1996 Grammys

On February 28, 1996, Alanis Morissette made history at the Grammys, winning four awards, including Album of the Year for Jagged Little Pill. Fueled by unfiltered emotion and sharp songwriting, the album became a defining soundtrack of the '90s, blending alt-rock energy with deeply personal lyrics. With over 33 million copies sold worldwide, it remains one of the best-selling albums of all time

Here it is! A little slice of history shared just for you!

Playlist of the Week: Community Treasure Hunt easy edition 

Nadine's Indie Treasures: Imperial Measures Delivers a Prog-Pop Masterpiece

Nadine's latest musical obsession is Imperial Measures, a band that seamlessly fuses progressive rock with sophisticated pop. Their second album, The Promise of Morning, is a breathtaking journey of intricate guitar work, emotive vocals, and flawless production. Standout tracks like "Falling," "Medusa," and "Wages for Cages" are must-hears, but the entire album is an absolute gem. Available now on all platforms!

💬 Introducing Nadine’s Indie Treasures a new chapter where Nadine de Macedo handpicks and spotlights exceptional artists. Subscribe to her Bandcamp to support her work, enjoy exclusive singles, and be part of her evolving story!

Quick Indie News

Timtmmusic (my Alligator!) is calling on creatives to submit a 15-30 second clip showcasing a hidden talent for the music video of his new single "When Two Souls Connect" (out March 14); submissions are due by March 9 at 11:59 PM ET via DM or email ([email protected]).

Join Nadine de Macedo’s Trancemotion Listening Party on March 7! Celebrate the re-release of her debut album with a remastered journey through old-school trance, dreamhouse, and melodic techno, just in time for Bandcamp Friday! 🚀✨

If you'd like to introduce your latest release, just click here to submit all the details. I’d love to hear about it! 😇 Submit your track here.

Until Next Week: The Power Is in Your Hands

The reality is simple, Spotify isn’t going to change unless we force it to. Independent artists deserve better, and as listeners, we have the power to shift the industry in a fairer direction. Every stream, every purchase, every direct support move makes a difference.

So, before you hit play on Spotify, ask yourself, who are you really supporting?

Until next time, keep the spirit alive, keep sharing, and keep making noise for what matters.

Love, Mitxoda

END 😆 

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