Melbourne musicians are ditching the streaming giant over ethics, royalties, and unchecked AI. Industry experts and creatives weigh in on what needs to change.
For many artists, Spotify is a necessary evil. The payouts have long been an insult, but fresh ethical concerns have cast the platform in a darker light. Fed up, Melbourne songwriter Fenn Wilson pulled his band’s music from the service just over a month ago.
The decision came after learning CEO Daniel Ek was using artist profits to invest in Helsing – a defence tech company developing AI for strike drones.
For Wilson and his band, this was ‘more than enough’ to affirm they’d made the right call.
“It was enough for us to no longer want to contribute, even in a small way, to him bastardising and corrupting something beautiful,” Wilson says.
“It has taken me a long time to remember, it’s my music,” he says. “And if I don’t want someone touching it, then I don’t have to give it to them.”
Spotify vs Melbourne musicians
- Over 82 per cent of Australian musicians fear losing their livelihood to unchecked AI, with $500 million in projected losses by 2028
- King Gizzard & the Lizard Wizard, Leah Senior and Fenn Wilson & The Weather have all left Spotify over ethical concerns, among a growing number of artists
Stay up to date with what’s happening in and around Melbourne here.
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Growing resistance
Fenn Wilson & The Weather are part of a wider backlash. King Gizzard & the Lizard Wizard, folk artist Leah Senior and songwriter David Bridie have all abandoned the platform, alongside local names like Pollyman, and Al Matcott. International cult acts are in on it too with Massive Attack, Deerhoof and Godspeed You! Black Emperor, the most recent few to leave.
While more Australian musicians vote with their feet, the ARIAs have announced a new three-year partnership with Spotify, spruiked as an ‘unprecedented global platform for local talent.’
Music Victoria’s CEO Fiona Duncan says these tensions speak to a larger issue.
“AI must not become another tool that strips power and income away from artists. Every stage, every stream, every job relies on the music they create. They must be protected and supported to thrive, not sidelined by unchecked technological change.”
$500m hit to artists
Last year, APRA AMCOS – the body that manages Australian music royalties – commissioned an independent survey of more than 4,200 music creators.
The results found more than 82 per cent feared they’d be unable to make a living if AI went unchecked. Goldmedia, the research firm behind the report, projected nearly a quarter of creators’ revenue (over $500 million) could be lost by 2028 under current AI regulations.
For First Nations musicians, the risks are more severe.
Leah Flanagan, Director of the National Aboriginal and Torres Strait Islander Music Office, says AI poses a “significant threat” to Indigenous Cultural and Intellectual Property (ICIP); the songs, stories, and cultural knowledge that belong collectively to First Nations communities, not individuals.
So who owns what?
While the AI alarms are ringing clear, the law is still playing catch-up. Australia is in the middle of a policy fight, centred around a proposed ‘text and data mining’ exemption to the Copyright Act. If passed, it would allow tech companies to scrape copyrighted works; albums, books, films – without consent or compensation. The exemption was listed in an interim report by the Productivity Commission, as part of an inquiry into the impact of AI on the creative sector.
At a Senate hearing last week, Australian musicians and producers gathered to defend their work rights in opposition to the data mining plan.
First Nations rapper Adam Briggs emphasized the need to protect ICIP.
“Why is it a radical notion that artists should be compensated for their work?” he asked, urging the need for cultural safeguarding. “Keepers of stories, who can tell the stories, and when — that matters.”
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Other notable appearances included Holly Rankin (Jack River), Paul Dempsey (Something for Kate), and Dan McNamee (Art vs Science). Under questioning, the commission revealed it hadn’t consulted with musicians or the wider creative industry before publishing its recommendations. It had, however, engaged extensively with major tech firms, including Google, Meta, and OpenAI. Artists and advocates are now rallying against the clock, with the final report to be handed down on December 13.
That starts by reshaping the platforms themselves. Dr Benjamin Hopper is the Director of Studies in Intellectual Property Law at Melbourne Law School. He points out that Spotify is “AI-agnostic” – paying royalties based on streams regardless of whether a track is made by a human or generated artificially. Without reform, artists are left at the mercy of the algorithm.
Dr Hopper says a few practical policy changes could help. Namely, mandatory labeling of AI-generated songs, and giving musicians the option to block their work from being fed into AI training models. But his boldest idea is perhaps the most promising – a separate copyright system for machine-made tracks that would curb the financial incentive.
“For example, a copyright term of 12 months, as opposed to life of author plus 70 years for human-created works,” he explains. “This would clearly signal to potential song-makers that they will receive much longer and much stronger protection for human-made songs.”
In response to Dr Hopper labeling Spotify ‘AI-agnostic’, a Spotify spokesperson pointed to a new AI policy released by the streaming platform last month.
“While AI is changing how some music is made, our priorities are constant. We’re investing in tools to protect artist identity, enhance the platform, and provide listeners with more transparency. We support artists’ freedom to use AI creatively while actively combating its misuse by content farms and bad actors,” the spokesperson said.
Melbourne’s live edge
Amid the chaos and uncertainty, our state is blessed with something of a cultural buffer, thanks to its thriving arts capital. Music Victoria argues that while AI and streaming economics are indeed reshaping the landscape, Melbourne’s dense live music circuit remains a “powerful anchor”. Although it doesn’t make local artists immune, there’s space to try a different hand.
Fenn Wilson has some advice for the fencesitters.
“The music industry can make you compromise a lot and bend to the norm in order to achieve ‘success’, but it’s all bullshit,” he says. “Be authentic. If you don’t agree with something, don’t do it. Make good things, and keep those things away from the dickheads.”
Instead of a ‘pre-save’ promo, Fenn Wilson & The Weather will launch their new single Stranger with a gig at The Tote in December. Their tip for supporting an artist you love? Go analogue – buy the record, grab a shirt, and most importantly, catch them live.
“It may seem small, but it’s a gesture that can make all the difference.”
