Question

Spotify the Music Streaming Company

Who are the stakeholders affected and what are the ethical issues in this case? Is Spotify justified in saying it is prepared to pay but claimants will have to come to them and present a rightful claim? Or, does Spotify have the responsibility to find the artists and secure permission and pay the appropriate royalty before they stream the music? How do you evaluate the company’s claim that the system is too complex and that the laws and copyright infrastructure are the problems in the digital music industry? Is the issue in this case that the law is not keeping up with the high-tech music streaming industry or that Spotify is using this as an excuse to take short cuts and engage in a questionable practice?

Answer 1

Note: As there are many questions, as per HomeworkLib policy, giving answer for first 3 question here:

-- Affected stakeholders are music artist and music producing companies who sell music through CD or records. While the customers/ subscribers are benefitted with low cost.

There is also an ethical angle to this issue: do the customers have an obligation to provide for the financial well-being of artists whose music they enjoy listening by buying CDs or records (where Artists' get higherr royalty)?

-- To receive the royalty from Spotify one can affiliate and properly register their song with the appropriate collection agencies which are called Performing rights organizations (PRO). For an unregistered song, the artist need to make their rightful claim.

-- Since there are so many songs being uploaded and stremed on Spotify, it would be really difficult for the company to find the artists and secure permission and pay the appropriate royalty before they stream the music. However, they can not deny the rightful claim.

Thanks.