Are Drake’s streaming battles rewriting the rules of the music industry?

The discovery process will reveal whether Drake’s claims hold enough water to tip the scales.

By GILAD FINKELSTEIN DECEMBER 10, 2024 02:18

Rappers Kendrick Lamar (L) and Drake are pictured in Inglewood, California, U.S., on August 27, 2017 and in Toronto, Ontario, Canada, September 9, 2017 respectively in this combination photo. (photo credit: REUTERS/DANNY MOLOSHOK, REUTERS/MARK BLINCH)

A storm is brewing in the music industry, and at its center stands Canadian rapper and songwriter Drake, one of the world’s most successful artists – nowadays bashed by US rapper and songwriter Kendrick Lamar. The legal motion Drake recently filed against Spotify and Universal Music Group raises profound questions about the integrity of digital streaming platforms and the promotional machinery behind today’s chart-topping hits. This case may transcend the personal rivalry between Drake and Lamar, striking at the heart of the industry’s modern practices.

Drake’s claims, filed through Frozen Moments Inc., paint a damning portrait of the current music landscape. Allegations of bot-driven streaming, under-the-table licensing discounts, and pay-for-play schemes with radio stations suggest that what we hear isn’t left to chance or taste. Instead, it appears meticulously engineered. If these accusations hold up, they could set a groundbreaking legal precedent, forcing record labels and streaming services to rethink their strategies and methods.

One of the most intriguing aspects of the case involves Apple’s Siri. Drake alleges that Apple’s virtual assistant was deliberately redirecting users from his album, Certified Lover Boy, to Kendrick Lamar’s song “Not Like Us.” If proven, this kind of technological interference could open a Pandora’s box, sparking an entirely new class of lawsuits where music and tech intersect.

Drake Summer Sixteen Tour 2016 in Toronto (credit: THE COME UP SHOW/CC BY 2.0 (https://creativecommons.org/licenses/by/2.0)/VIA WIKIMEDIA COMMONS)

Spotify and Universal, however, are expected to counter the Siri assertion with a defense rooted in the complexities of artificial intelligence (AI). Siri’s recommendations, they will likely argue, are the result of sophisticated, AI-driven algorithms that adapt to user behavior and preferences, rather than any intentional favoritism. These algorithms function as a “black box,” delivering statistically derived predictions rather than deliberate choices. Proving otherwise may be a steep climb for Drake’s legal team.

The legal process

It’s worth noting that the case is still in its early stages. What’s on the table is a legal motion – not yet a fully fledged lawsuit. The discovery process will reveal whether Drake’s claims hold enough water to tip the scales. But even if his motion falters, it shines a glaring spotlight on an industry increasingly shaped by streaming and artificial intelligence.

Drake’s legal team sums up the stakes succinctly: “Streaming and licensing is a zero-sum game. Every time a song ‘breaks through,’ it means another artist does not.” They argue that Universal’s aggressive promotion of “Not Like Us” may have suppressed competing tracks, including Drake’s own work.

While some might dismiss Drake’s move as mere industry infighting, it represents a significant challenge to written and unwritten rules governing how music is (or should be) promoted and consumed. The outcome could shape not just the careers of today’s stars but the future of the music industry itself.

The writer is a CPA and the founder of Finkelstein Law Firm, specializing in international transactions and commercial litigation.