Music streaming giant Spotify has been running a secretive program called Perfect Fit Content (PFC) that places low-cost, anonymously produced music on popular playlists, according to an investigation by Liz Pelly published in Harper’s Magazine. The program aims to reduce royalty payments by replacing tracks from known artists with cheaper alternatives on mood and activity playlists.
Internal documents and interviews with former employees reveal that Spotify partnered with production companies to create this content, while maintaining a team dedicated to seeding these tracks across the platform. The practice particularly affects genres like jazz, classical, and ambient music used in popular “background” playlists for studying, sleeping, and relaxation.
Musicians contracted to create PFC content often surrender valuable rights and receive minimal compensation, even when tracks generate millions of streams. Former Spotify employees expressed concern about the lack of transparency and the impact on genuine artists trying to make a living on the platform.
The program, which began around 2017, has expanded to include hundreds of playlists and multiple production partners. Industry observers worry this could accelerate with the rise of AI-generated music, further threatening artists’ livelihoods and the connection between musicians and listeners.