Spotify Is Quietly Dealing With a Major Fund Problem

The streaming giant is being dinged for seemingly hedging on a public promise.

Last year Joe Rogan and Spotify  (SPOT) - Get Free Report were widely criticized for…well…where to start, really?

The host of the wildly popular podcast "The Joe Rogan Experience," which has been reported to be worth $200 million to Spotify, has been criticized for spreading conspiracies and for Rogan’s tendency to say some inflammatory remarks.

Don’t Miss: Watch Out For These Tax Season Scams

But Rogan and Spotify found themselves in especially hot water last year when he interviewed Robert Malone, a vaccine skeptic who has been banned from Twitter for spreading misinformation, and who claimed on the show that vaccines don’t work, which goes against the universally accepted medical consensus. 

In an act of protest, classic rock legends Neil Young and Joni Mitchell, both survivors of childhood polio, pulled their music from the service, and Grammy-winning singer-songwriter Inida.Arie posted a video on Instagram that compiled several instances of Rogan using racial slurs. 

As a result, Spotify formed an 18-member Safety Advisory Council to give expert input on issues ranging from hate speech to disinformation to online extremism, and Spotify founder and CEO Daniel Ek also formed a COVID-19 Hub that provides “easy access to data-driven facts, up-to-date information as shared by scientists, physicians, academics and public health authorities around the world, as well as links to trusted sources.” 

Receive full access to real-time market analysis along with stock, commodities, and options trading recommendations. Sign up for Real Money Pro now.

Additionally, Spotify formed the “Creator Equity Fund,” which was set to pledge $100 million “for the licensing, development, and marketing of music (artists and songwriters) and audio content from historically marginalized groups.”

Does Spotify Need To Pick Up The Slack?

Now news has broken that Spotify has spent less than 10% of its funding on that work, according to Bloomberg. The culprit seems to be corporate bureaucracy.

The initiative is reportedly behind schedule in hiring an eight-person staff to oversee the project and “has suffered from shifting priorities.” It had not completed its 2023 budget and had not determined its priority projects, according to a memo.

Another fund intended to promote diversity in podcasts was impacted by layoffs. Bloomberg reported that the fund, which was set to distribute money over three years, “lacked a well-structured, clear system for vetting and approving projects or allocating money.”

When reached for comment, Spotify pointed to“Glow,” which highlights music from LGBTQ artists, and “Nailing It,” a podcast hosted by three Black women, and sent a statement reading:

 “The Spotify Creator Equity Fund is dedicated to a variety of initiatives that help elevate and support an inclusive and diverse portfolio of artists and creators on the platform. We are able to empower and uplift underrepresented voices around the world.”