Spotify Technology SA (NYSE:SPOT) has strongly denied allegations from Drake that it “artificially inflated” streaming numbers for rival artist Kendrick Lamar’s track “Not Like Us.”
What Happened: In opposition papers filed, Spotify stated it “has no economic incentive” to favor Lamar’s track over Drake’s music, reported Variety.
“Marquee was purchased on behalf of the song, for €500 to promote the track in France. Marquee is a visual ad that is disclosed to users as a Sponsored Recommendation,” stated a Spotify spokesperson.
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Drake’s company Frozen Moments had previously filed a petition claiming that Spotify and Universal Music Group (OTC:UMGNF) artificially boosted Lamar’s streaming numbers.
The petition alleged UMG offered Spotify a 30% discount on licensing rates in exchange for promoting “Not Like Us,” a claim both companies deny.
Earlier, Universal Music Group rejected the accusations as “offensive and untrue,” underscoring their commitment to ethical marketing practices. A UMG spokesperson stated that fan choice, not manipulation, drives streaming numbers.
Drake’s legal team responded through a statement to Variety, challenging both companies to comply with discovery requests if they have “nothing to hide.”
Why It Matters: The dispute has expanded beyond streaming numbers, with Drake filing a separate action in Texas alleging defamation and improper radio promotion practices.
Neither artist is directly signed to UMG, instead licensing their music through their own companies – Drake’s OVO and Lamar’s pgLang – to Universal labels for marketing and distribution.
Sources familiar with the matter suggest that Drake’s petition primarily targets Universal — the label responsible for distributing his music since his 2009 debut with Lil Wayne’s Young Money — rather than Spotify, iHeart, or Lamar himself, the report noted.
However, the timing of the legal action, revolving around a song tied to the prolonged feud between the two artists, seems far from coincidental.
“Not Like Us” stands out as a diss track that not only climbed to the top of the Billboard Hot 100 but also secured multiple nominations for the 2025 Grammy Awards.
Price Action: Spotify’s stock rose by 1.48% on Friday, closing at $460.88. Year-to-date, the company’s shares have skyrocketed 144.11%, significantly outperforming the Nasdaq 100 index, which has gained 28.68% during the same timeframe, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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