Kim Komando Daily Tech Update

Spotify: Is payola back?

7 min
Jan 28, 20263 months ago
Listen to Episode
Summary

This episode explores whether Spotify's Discovery Mode algorithm constitutes a modern form of payola, drawing parallels to the 1950s radio scandal where record labels secretly paid DJs to play songs. A class action lawsuit claims Spotify misleads customers by promoting music based on payments from labels rather than true personalization.

Insights
  • Streaming platforms may be recreating historical payola practices through algorithmic manipulation
  • Consumer trust in personalized recommendations is at risk when financial incentives drive content promotion
  • Anti-payola laws from the 1950s may not adequately cover modern streaming algorithms
  • Class action lawsuits are emerging as a mechanism to challenge algorithmic transparency in music streaming
  • The definition of 'personalized' content is being legally challenged in the streaming era
Trends
Algorithmic transparency lawsuits against streaming platformsModern payola practices in digital music streamingConsumer protection challenges in AI-driven recommendation systemsLegal scrutiny of personalized content algorithmsDrone delivery expansion in retailYouTube consumption among infants and toddlers
Quotes
"Major record labels secretly paid radio DJs to play their songs on the air, making those so seem very popular when in reality they were being artificially promoted, deceiving the public."
Kim Komando
"Thousands of Spotify customers filed a class action lawsuit claiming that Spotify's algorithm for its discovery mode, where customers are supposed to hear personalized recommendations of new music, is actually being driven by money paid by the label or the artist to Spotify without saying so."
Kim Komando
"Now if that's true, then it's not personal and customers were misled. And that's the question. Is Payola back?"
Kim Komando
"Two thirds of all babies under the age of two watch YouTube. Yeah, that absolutely checks out. And experts say that it's tied to delayed language development."
Kim Komando
Full Transcript
5 Speakers
Speaker A

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0:00

Speaker B

Gonna have a special surprise for you.

1:04

Speaker A

It's a clip from my other podcast. It's called the Current. It's packed with great tech news that you expect just a little bit more relaxed. I think you're really gonna love it.

1:06

Speaker B

Just think of it as your tech coffee break.

1:14

Speaker A

There was a major radio station scandal back in the 1950s called Payola. Major record labels secretly paid radio DJs to play their songs on the air, making those so seem very popular when in reality they were being artificially promoted, deceiving the public. Many DJs were fired. Congress passed laws that are still in effect today. But that was 70 years ago, so why does this matter now? Hang on. I'm Kim Commando with Improve Life. I created GLP1 support to manage cravings, support metabolism, and keep blood sugar on track. Find out more@provelife.com Kim the Anti Payola laws affected radio stations only in November. Thousands of Spotify customers filed a class action lawsuit claiming that Spotify's algorithm for its discovery mode, where customers are supposed to hear personalized recommendations of new music, is actually being driven by money paid by the label or the artist to Spotify without saying so. Now if that's true, then it's not personal and customers were misled. And that's the question. Is Payola back? Get my newsletter@getkim.com you don't want to miss this. I'm going to play a bite sized sample of the current it's my other.

1:17

Speaker B

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2:22

Speaker A

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2:24

Speaker C

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3:22

Speaker D

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3:30

Speaker B

All babies under the age of two watch YouTube.

4:00

Speaker E

Yeah, that absolutely checks out.

4:03

Speaker B

And experts say that it's tied to delayed language development. Unless you're narrating like Mr. Rogers.

4:07

Speaker E

But I don't. I don't. That doesn't connect with me because you're consuming more language than ever. I mean, if you didn't have. If a child was not watching YouTube videos. I guess if it's just music and colors, I was gonna say maybe Einstein or something, but if it was something with dialogue, I would hope it would push that forward.

4:14

Speaker B

Or, you know, what's. What's the other. Baby shark.

4:35

Speaker E

Yeah, baby. Most viewed video ever.

4:38

Speaker A

Okay.

4:40

Speaker B

That's a lot of language like that, right?

4:40

Speaker E

You learn about mommy shark and daddy shark and grammy shark. She has no teeth.

4:43

Speaker B

Could you imagine baby's first words like and subscribe, please. It Helps the channel.

4:50

Speaker E

Hey, Chat, The current podcast powered by Kim Commando. We'll be right back.

4:59

Speaker B

Oh, God, you're so stupid.

5:14

Speaker A

But funny.

5:17

Speaker E

Thank you.

5:18

Speaker B

Alphabet's wing is adding 150 more Walmart.

5:19

Speaker A

Stores for drone delivery.

5:22

Speaker E

That's cool.

5:24

Speaker A

Yes.

5:24

Speaker B

So Dallas, Atlanta and Houston, they say within a couple of years they're going.

5:25

Speaker A

To serve 40 million Americans.

5:29

Speaker E

Now we have one here in Peoria, but I believe the range is. Peoria is a suburb of Phoenix. The range is very limited because I never. I have the Walmart. Walmart. I did an endorsement for them and they just give me the Walmart subscription for free so I can get free delivery and it's never been an option. And I'm not that far from Peoria.

5:31

Speaker B

I don't think it's going so well. No, no. Amazon's is not doing well in Phoenix.

5:48

Speaker A

Okay.

5:53

Speaker B

They're out towards Buckeye. I understand that they're having big trouble.

5:54

Speaker E

Okay.

5:57

Speaker B

Out there.

5:57

Speaker E

Buckeye, another suburb of Phoenix.

5:57

Speaker B

So what do you think are the top things that people order by drones?

5:59

Speaker E

I would. Groceries. I mean, is it that generic?

6:03

Speaker B

Yeah, it's groceries. But figure out what kind of groceries.

6:05

Speaker E

More specific.

6:08

Speaker A

Yes.

6:08

Speaker E

Peanut butter.

6:10

Speaker A

No.

6:11

Speaker C

No.

6:12

Speaker E

Bananas. We did a story on the show this week. That's the number one thing.

6:12

Speaker A

Yeah.

6:15

Speaker B

There's bananas delivered through apps.

6:16

Speaker E

Is bananas.

6:17

Speaker A

Okay. But.

6:18

Speaker B

But specifically Walmart is eggs.

6:19

Speaker E

Okay.

6:22

Speaker A

Avocados.

6:23

Speaker C

Sure.

6:23

Speaker B

Ground beef and takis.

6:24

Speaker E

All right. But you know what? Three natural whole foods there and then a little Takis.

6:27

Speaker B

I didn't know what takis were.

6:31

Speaker E

You don't know what a takis?

6:32

Speaker B

No, I had to look it up.

6:34

Speaker E

I did it. Tell your chat bot.

6:35

Speaker A

It'S all kinds.

6:39

Speaker B

Of like chips and stuff.

6:39

Speaker E

It's a rolled tortilla chip. That's all it is.

6:40

Speaker A

Is it?

6:42

Speaker E

Yeah, that's covered in dust.

6:42

Speaker B

I mean, I can't wait for a drone to like drop guacamole mix on my.

6:45

Speaker E

Or your jugs of wine. They'll just be delivered right to the front door.

6:49

Speaker B

There you go.

6:53

Speaker E

It's going to be.

6:54

Speaker A

It's going to be.

6:54

Speaker B

I don't know what this guy was thinking.

6:55

Speaker E

It needs to be a military grade drone to bring your wine delivery.

6:56

Speaker B

Like jugs and.

7:02

Speaker E

Wine'S here.

7:05

Speaker B

I'll have a glass. Oh, my God.

7:07

Speaker A

Hey, if you love staying tech ahead, then you're gonna love, love, love. I'm talking about my free newsletter called the Current. Join almost a million folks who get it every single day. It's quick, smart, and only takes five minutes a day. Yes. Sign up right now@getkim.com that's getkim.com.

7:12