AI, Bot Farms, and Innocent Indie Victims: The Dark Side of Music Streaming Scams | Music Streaming Insights

The music industry is currently facing a struggle, particularly regarding the operations of streaming services, with unsuspecting indie artists caught in the crossfire.

Streaming platforms like Spotify and Apple Music are inundated with AI-generated tracks, which are cheap and easy to produce. In April, Deather estimated that 20,000 fully AI-created tracks—making up 18% of new releases—were being consumed daily, nearly double the number from January. Scammers often employ bots, AI, or even humans to loop these fake songs repeatedly to generate revenue, while some exploit upload services to place counterfeit songs on legitimate artist pages, siphoning off royalties.

Spotify has begun penalizing the most egregious offenders, with the statement that it is utilizing “significant engineering resources and investigations into the detection, mitigation, and removal of artificial streaming activities.” Meanwhile, Apple Music contends that “less than 1% of all streams are manipulated.” While this might sound reassuring, the global streaming business generated $20.4 billion (according to IFPI), indicating that hundreds of millions of dollars could be lost annually to fraudulent operators.

One significant issue arises from the drastically lowered entry barriers for musicians; uploading a song to streaming platforms is now much simpler than producing CDs and vinyl. However, this ease has similarly afforded fraudsters an easier path. Though the industry has declared war on this manipulation, the automatic detection systems can mistakenly flag innocent artists, leading to their music being taken down.

Darren Owen, COO of music streaming service Fuga, identified a “surge in streaming scams” spreading throughout the industry since around 2021.

Utilizing AI and machine learning, FUGA assigns a “severity score” to streaming patterns and distinguishes “nonhuman listening habits” to uncover fraudulent activities. “I wouldn’t listen to the same song on different devices at once,” Owen states. Countries like India, Vietnam, Thailand, and certain areas in Eastern Europe have been flagged as hotspots for click-farm operations utilizing low-wage labor. “It’s also been revealed that organized crime is involved,” he adds.

It’s not just platforms like Germany’s Pimpyourfollower.de, which was taken down following a court order. Similar services in Canada and Brazil are also facing scrutiny from record industry trade organizations for inflating streaming numbers artificially. Universal Music Group (UMG), the world’s largest record label, has allegedly conspired to boost play counts for Kendrick Lamar’s diss track “None Like Us.”

The Guardian has spoken with several artists who find themselves in the firing line of this manipulation war.

Darren Hemmings, managing director and musician at the music marketing company Motive Unknown, reported that a recent EP saw a track’s plays spike over 1,000—an indication of manipulation. “I don’t blame them for concluding that,” he says, but adds, “it’s very much like being judged, tried, and executed all at once.” He insists he did not manipulate his streams but couldn’t identify the cause aside from climbing popularity among real listeners.

The Northern Irish rock band Final 13 experienced their music being removed from streaming services due to a sudden spike of tens of thousands of plays. They believe this surge resulted from airplay on Radio 1, yet concluded their distributors were caught up in automated manipulation. “It’s really tough for any artist to prove they didn’t [manipulate streams], but it’s even more challenging for Spotify to justify what they did,” remarks their drummer, Doubes. “[They] take it down, and that’s the end of it.”

Indie artist Adam J. Morgan, known as Naked Burner, earned over 10,000 streams in a week, likely due to his music being featured in TikTok videos, but was flagged as suspicious by distributor Routenote. “I hadn’t done anything wrong, and they offered no evidence,” he states, suspecting that it was simply due to an overly sensitive algorithm. “I spent the weekend trying to understand the problem, but Spotify informed me that my music wasn’t flagged at all.” Routenote did not respond to a request for comment.

Such takedowns can disrupt musicians, hinder marketing efforts, and ultimately affect earnings. Matthew Whiteside, who heads TNW Music Label, has faced claims of artificial streaming for three different albums. He noted that TNW Music tracks had been included in a controlled playlist. “It didn’t make sense based on genre. My distributor said I could resubmit the album for $40 each time, but that’s not feasible without assurance of success.”

“Streaming generally favors smaller acts and niche genres,” he observes. “I’d be thrilled to get 1,000 streams a month with an album.” Consequently, paying to re-upload an album can be beyond the release budget.

Deezer claims to be leading the way in implementing fraud detection mechanisms. “We monitor various metrics to help our algorithms determine user authenticity,” says Thibault Roucou, reporting director at the company’s royalties department. “When we initiate a takedown, we manually review the situation to ensure it’s a serious issue.”

Regrettably, many systems that execute takedowns often presume guilt, and the appeal processes can be so complicated that many small acts, already struggling, simply give up. Levina, who represented Germany in the Eurovision Song Contest in 2017, experienced her music being removed from streaming platforms without any warning. “Appealing against them is nearly impossible,” she sighs.

She is also the chair of the Artists Council within the Feature Artists Coalition, working to establish “minimum standards for what distributors should provide.” She suggests implementing a traffic light warning system, allowing artists the opportunity to present their defense or rectify issues.

Streaming platforms and distributors assert that the focus is on containment rather than complete removal. However, Owen notes that the current issue isn’t solely about scammers perpetrating large-scale manipulations but involves subtle adjustments to numerous tracks to avoid detection.

For Hemmings, this situation could result in a two-tier streaming landscape where smaller acts abandon mainstream platforms. “This might lead to the conclusion that focusing on alternative revenue streams is a wiser choice for many within the independent music community.”