Spotify Only Spent 10% of Its Diversity Fund Last Year

CEO Daniel Ek pledged last year to invest in ‘historically marginalized groups’

After the controversy over star podcast host Joe Rogan reached its peak last year, Spotify CEO Daniel Ek announced that an initiative called Creator Equity Fund would bring music and other audio content from “historically marginalized groups.” pledged to invest $100 million in But just a few years later, Spotify executives are only spending his 10% of that budget.

according to bloomberg, Creator Equity Fund struggled to get off the ground at first, took months to hire staff, and bore the brunt of “shifting priorities.” I don’t think I’ve done a good job of organizing my plans for 2023 either. bloomberg Earlier this year, they said they were still finalizing the fund’s budget and sorting out priority projects.

“The Spotify Creator Equity Fund is dedicated to a variety of initiatives that help advance and support a comprehensive and diverse portfolio of artists and creators on our platform,” a Spotify spokesperson said in a statement. increase. “We can empower and elevate underrepresented voices around the world.”

That $100 million amount is significant in and of itself, as many outlets have reported that Logan’s contract had the same price tag (other outlets say his contract was actually over $200 million). Spotify has appointed a project manager, pitched ideas, created new shows, and assembled a team to assist with marketing, but the implementation of the project and the allocation of funds have remained largely unchanged for this initiative. ultimately lacked sufficient structure.

In a letter to Spotify employees announcing the initiative in February 2022, Ek also did not mention the lifespan of the Spotify Creator Equity Fund, only describing it as an “incremental investment.” However, a Spotify spokesperson insisted the system was working, claiming the fund was designed to live over an unclear “multiple years” rather than a set period of time.

“We seriously question this company’s commitment to fund this commission and, by extension, the value it represents,” said a union member of Spotify’s True Crime podcast network Percast. employees are bloomberg.

This isn’t the first time Spotify has questioned the legitimacy of its initiative. March 2022, result The company’s Loud & Clear initiative — a response to global protests demanding higher royalty payments to artists — uses vague terms and claims it boasts of being an artist-friendly platform Did. It came not long after Spotify had already taken a hot seat following a massive outflow of musicians pulling music from the platform, largely initiated by Neil Young.