Core Points - Spotify addressed misinformation regarding its terms of use, specifically claims that it modified terms to transfer rights of artists' music to third parties [1][2] - The company clarified that the updated terms do not affect the distribution rights of artists, podcasters, creators, and authors [2] - The new terms primarily apply to listeners, allowing Spotify to utilize user-generated content for features like custom playlist covers and user comments [3] Industry Context - Spotify faces ongoing criticism about artist compensation, with allegations of insufficient payments for their work on the platform [4] - Legislative efforts, such as the Living Wage for Musicians Act proposed by Congress members, aim to increase streaming royalties to one cent per stream [4] - Despite criticism, Spotify reported that it paid out $10 billion to the music industry in 2024, indicating an improvement in payments [4]