Why Spotify Doesn't Remove Songs for Streaming Fraud

When a song gets flagged for streaming fraud, Spotify doesn't remove the song.

It doesn't request that the distributor remove the song.

What Spotify does is report to the distributor that the song has generated fraudulent streams, and it imposes a $10 fine for every track that gets flagged for streaming fraud.

Now consider the business model.

You have distributors charging artists $20 per year for unlimited distribution. An artist uploads 20 songs, and every one of them gets flagged for streaming fraud.

The distributor now owes Spotify $200 in fines while only collecting $20 in revenue from that artist.

That's why distributors decide whether the song stays or goes.

They decide whether the release gets removed.

They decide whether the artist gets banned from their platform.

Those decisions happen at the distributor's discretion.

Could a distributor choose to lose $200 while collecting only $20?

Yes.

Would that be a smart business decision?

Of course not.

There's another reason distributors act aggressively.

If a distributor is associated with streaming fraud too frequently, it risks losing its ability to distribute music to Spotify.

And if a distributor can't deliver music to Spotify, it's effectively dead.

That's why distributors remove songs, suspend releases, and ban artists.

It's self-preservation.

Sure, they'll say it's about protecting the music ecosystem and preventing fraudsters from extracting royalties from legitimate artists.

But if fraudulent activity resulted in them making more money instead of losing money, would they be just as aggressive?

Probably not.

This is largely about protecting their business model.

Why Are Major Labels Treated Differently?

That raises another question.

Why does Spotify fine DIY distributors and threaten their ability to distribute music, while major labels typically see fraudulent streams simply discredited?

Why isn't the same enforcement applied across the board?

The answer is leverage.

Imagine Spotify revoked the distribution rights of a major music company.

Suddenly, the platform loses access to artists like Taylor Swift and countless other commercially important acts.

That would be disastrous for Spotify.

Spotify depends on that music to attract and retain subscribers.

Revoking the distribution rights of a company like Universal Music Group or Warner Music Group would hurt Spotify more than it would help.

So it simply isn't a realistic option.

Protection Comes From Value

This isn't just about major labels.

Any artist or song that provides significant value to Spotify gains a certain level of protection.

Ask a simple question:

If this song disappeared tomorrow, who would miss it?

If this artist vanished from Spotify, what would the impact be?

The more valuable that artist is to the platform, the more leverage they have.

Most artists using low-cost DIY distribution services don't have that leverage.

Not Every Artist Gets the Same Level of Support

There's another distinction many artists overlook.

Companies often operate multiple levels of service.

Take TuneCore, for example.

TuneCore is owned by Believe.

An artist using TuneCore's standard DIY service isn't necessarily receiving the same level of attention as an artist working directly with Believe's higher-tier artist services.

Similarly, you have CD Baby and Virgin Music Group.

Both exist within the same broader corporate ecosystem, but they don't provide the same level of support.

An artist receiving premium label-style services may have a dedicated representative.

If their music is flagged for streaming fraud, that conversation might begin with an email—or even a phone call.

An artist paying $20 or $60 per year for self-service distribution typically doesn't receive that level of attention.

What Spotify Actually Cares About

When it comes to streaming fraud, Spotify ultimately asks the same question everyone else does:

Who would miss it if it disappeared?

Because people often forget something important.

Spotify does not make money from streams.

Spotify makes money from subscriptions and advertising.

Streams are actually an expense.

Every stream costs Spotify money because royalties have to be paid.

The platform doesn't care how many streams you generate.

It cares about how many subscribers you bring to the platform.

That's the business model.

And understanding that business model explains why Spotify, distributors, major labels, and premium artist services often respond to streaming fraud very differently.