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Spotify: How Fake Streams Rob Real Artists in Neoliberal Capitalism

TL;DR

  • A class action lawsuit filed November 2, 2025 accuses Spotify of knowingly allowing billions of fraudulent bot-generated streams to pollute its royalty payment system — and profiting from it.
  • Between January 2022 and September 2025, a substantial, non-trivial percentage of Drake’s approximately 37 billion Spotify streams showed clear signs of bot manipulation, including streams originating from areas with zero residential addresses and users who “traveled” 500+ kilometers between consecutive song plays.
  • Spotify’s royalty system is a zero-sum pool: every fake stream given to a bot-boosted artist directly steals money from every legitimate artist whose real fans listened that month.
  • The streaming fraud committed against legitimate rights holders is estimated to total hundreds of millions of dollars in stolen royalties — money that flowed to bot-boosted accounts instead.
  • Spotify publicly claimed it had anti-fraud systems in place, but the lawsuit alleges those claims were window dressing designed to conceal the scope of the problem from the artists being robbed.
The evidence about Drake’s streams — users physically “teleporting” thousands of kilometers between songs — is laid out in full in the Legal Receipts section. It is more absurd than you expect.

Spotify paid $9 billion ($9,000,000,000 — more than the average American worker earns across 180,000 lifetimes) in royalties in 2023 alone — and a lawsuit filed this fall alleges the company deliberately let automated bot accounts steal a cut of that money from the real human beings who made the music.

How Spotify Built a System Designed to Be Robbed

Spotify does not pay artists per stream. It collects subscription fees and advertising dollars into a single monthly pot, then divides that pot among rights holders based on their share of total streams that month. The math is brutally simple: if bots flood the platform with fake plays for one artist, every other artist on the platform gets a smaller slice. The pie does not get bigger. It gets redistributed.

As Drake himself once stated in a separate legal filing, cited directly in this complaint: “streaming and licensing is a zero-sum game.” That framing is critical. When bots steal streams, they do not create new money. They redirect existing money — money owed to a songwriter in Detroit, a producer in Atlanta, a rapper in Long Beach — and funnel it toward whoever paid for the bots.

The lawsuit was filed by Eric Dwayne Collins, known professionally as RBX — a foundational figure in West Coast hip-hop whose voice appears on Dr. Dre’s The Chronic, Snoop Dogg’s Doggystyle (11 million copies sold), and Eminem’s The Marshall Mathers LP (11x Platinum). He is not a marginal player. He is a legend whose royalty rights are being drained by a system Spotify chose to leave broken.

“Every month, more than a hundred thousand artists, songwriters, and producers are forced to compete for their share of a limited pool of royalty payments from Spotify.”

The Platform That Made Fraud Easy on Purpose

Spotify offers a free, ad-supported version of its service. That free tier requires no credit card to sign up. Bots do not have credit cards. This was not an oversight — it was an architecture that made large-scale fraud trivially easy to execute. The lawsuit states directly that Spotify was “one of the easiest platforms to defraud using Bots due to its negligent, lax, and/or non-existent Bot-related security measures.”

The complaint identifies the core financial incentive clearly: every fake stream run by a bot account is still a stream, and Spotify sells advertising based on total stream volume and monthly active user counts. More streams means Spotify charges advertisers more. Cleaning up the fraud would cost Spotify advertising revenue. So Spotify chose not to clean it up.

Spotify publicly boasted to its investors about its 696 million monthly active users as of June 30, 2025, growing 11% year-over-year. The complaint alleges those numbers are inflated by fake bot accounts, meaning the user figures Spotify feeds to advertisers — and the ad rates it charges based on those figures — may be built on a fraud that runs from the bottom of the platform all the way up to the investor relations deck.

The November 2023 “Fix” That Fixed Nothing

Spotify announced anti-fraud policy changes in November 2023 and began implementing them in April 2024. The new policy requires tracks to hit at least 1,000 streams in a 12-month window before they qualify for royalty payments. Spotify also stated it would begin imposing financial penalties on labels and distributors when “flagrant” artificial streaming is detected — but only starting in early 2025.

The lawsuit describes these measures as “negligently overdue” and “negligently insufficient.” The framing matters: by Spotify’s own policies, fraud had to become visibly catastrophic before the company would act, and even then, the actions taken were too narrow to address the scale of what was actually happening on the platform.

The complaint is unambiguous: “despite these assurances, multiple instances of artificial streaming activity have continued to occur and persist on Spotify’s platform. The ongoing existence of such activity shows that Spotify’s detection mechanisms and enforcement policies are ineffective, inconsistently applied, and/or insufficient.”

696M Monthly Active Users Spotify reports to investors — numbers the lawsuit alleges are inflated by fake bot accounts
$9B Royalties Spotify paid in 2023 alone (enough to give $9,000 to every public school teacher in America)
$100M+ Estimated royalties stolen from legitimate artists via Drake’s fraudulent streams alone — described as “hundreds of millions”

Spotify’s Revenue Pool vs. Estimated Fraud Exposure (2023, USD Billions)

$0B $10B $20B $30B $40B USD (Billions) Music Streaming Global Revenue 2024 $46B Spotify Royalties Paid to Artists 2023 $9B Est. Fraud Stolen From Legit Artists $100M–$300M+

Sources: Class action complaint filed November 2, 2025. Global music streaming figure from complaint paragraph 28. Spotify royalties from complaint paragraph 35. Fraud estimate from complaint paragraph 69.

The Drake Numbers That Should Have Triggered Alarms

Drake became the first artist to nominally reach 120 billion total streams on Spotify in September 2025. The word “nominally” is doing serious work in that sentence. The lawsuit alleges that between January 2022 and September 2025, a substantial, non-trivial percentage of his approximately 37 billion streams during that period came from a sprawling network of bot accounts.

The data patterns described in the complaint are the kind of thing that should have triggered automatic fraud flags. These are statistical impossibilities that any competent data team would catch. The fact that Spotify did not catch them — or chose not to act on them — is central to the lawsuit’s argument that the company’s negligence was willful.

Users Who “Teleported” 500 Kilometers Between Songs

Geohash data cited in the complaint shows that nearly 10% of Drake’s streams came from user accounts whose location data logged travel of at least 15,000 kilometers in a single month. These same accounts showed consecutive song plays separated by mere seconds but with location data jumping thousands of kilometers between tracks — including jumps of more than 500 kilometers between songs. For reference, 500 kilometers is roughly the distance from New York City to Pittsburgh. Real human beings do not teleport between cities between tracks on a playlist.

Over a four-day period in 2024, at least 250,000 streams of Drake’s song “No Face” originated in Turkey but were routed through VPNs to appear as though they came from the United Kingdom. This is a specific, documented instance of bot operators actively attempting to conceal their operation from Spotify’s detection systems — and Spotify’s systems still let those streams count.

The complaint also identifies geographic concentration as a red flag that Spotify ignored. A large percentage of accounts streaming Drake’s music were clustered around areas whose entire populations could not mathematically generate the volume of streams being attributed to them. In some cases, more than a hundred million streams were traced to areas with zero residential addresses. Not low population. Zero.

“Less than 2% of his users accounts for roughly 15% of his overall streams. And roughly 9% of his streams are attributable to less than 1% of his users.”

Listening Patterns No Human Being Could Sustain

The average Spotify listener hears about 10 songs per day. The complaint alleges that a massive number of accounts streaming Drake’s music listened exclusively to his catalog for 23 hours a day. Every day. No human being does this. A person who genuinely loves an artist does not listen to them for 23 consecutive hours daily with almost no breaks.

The statistical footprint of the fraud is equally glaring: Drake’s music accumulated far higher total streams compared to other comparably popular artists, even when those other artists had significantly more unique users listening to them. More actual human fans, fewer total streams — because Drake’s stream count was artificially padded by accounts that do not belong to people.

The complaint states that Drake’s decay rate — the natural pattern by which streams taper off after an album release — was “slower and less dramatic when compared to those of his contemporaries.” And in some instances, Drake’s songs showed significant streaming upticks months or even years after release with no promotional explanation. Real fans do not spontaneously rediscover an old track in waves that mirror the pattern of coordinated bot activity.

The Money That Went to the Wrong Place

The complaint names Drake and his company, Frozen Moments, LLC, as the entities whose revenue pool shares were “substantially and artificially increased” by the bot operation. The money flowing to those inflated shares came directly out of the pool owed to everyone else. The estimated value of royalties redirected away from legitimate rights holders and toward the bot-boosted accounts is described as “hundreds of millions of dollars.” That is not a rounding error. That is a systematic wealth transfer from working artists to fraudsters, conducted on a platform that looked the other way.

Drake Stream Anomalies: Key Fraud Indicators (Complaint Data)

0% 5% 10% 15% 20%+ % of Total Streams / Users Showing Anomaly Users “Traveling” 15,000km/month ~10% 15% of Streams from Top 2% of Users ~15% 9% of Streams from <1% of Users ~9% Accounts Listening 23hrs/Day Significant “No Face”: 250K Streams / 4 Days Fake UK geo

Data sourced directly from class action complaint paragraphs 61–67. All figures represent specific allegations contained in the complaint.

The Non-Financial Ledger: What Money Cannot Measure

RBX is 54 years old. His voice is part of the DNA of an entire genre. It anchors records that defined a generation — The Chronic, Doggystyle, The Marshall Mathers LP. The royalties trickling into his account each month from Spotify are supposed to represent decades of creative labor and cultural contribution. Instead, a portion of what he earned is being quietly siphoned into the accounts of whoever paid for the bots.

There is a particular kind of betrayal in this system. The artist does the work. They record the song, they license it to the platform, they trust the platform to count honestly. The platform then tells them: “we protect you, we have systems, we take fraud seriously.” That promise — repeated in press releases, in policy pages, in SEC filings — is what the lawsuit alleges was always a lie. The artists trusted Spotify’s word. Spotify used that trust as cover to avoid fixing a problem that made the company money to ignore.

The class covers over 100,000 rights holders. These are not all superstars. Many are independent artists, session musicians, producers working at the margins of the industry, songwriters who made a fraction of a penny every time a real person chose to listen to their work. For those people, a stolen percentage point of royalty share is not a rounding error. It is a rent payment. It is a studio session they cannot book. It is a reason to consider quitting music entirely.

The complaint acknowledges this explicitly, noting that Plaintiff “gives a voice to more than one hundred thousand rightsholders who, among other things, may be unable or too afraid to challenge Spotify, a powerful force in the music business.” That fear is real and rational. Spotify controls access to 696 million potential listeners. An independent artist who publicly picks a fight with Spotify risks losing algorithmic placement, losing playlist consideration, losing the discoverability that the platform itself controls. The power imbalance is total. The artists cannot fight back without someone like RBX willing to take the hit first.

Legal Receipts: The Quotes That Indict Spotify

What Spotify’s Silence Was Worth

$9,000,000,000

Royalties Spotify paid out in 2023 — a pool that the lawsuit alleges was corrupted by bot-driven fraud stealing hundreds of millions from legitimate artists. That $9 billion (enough to give every one of America’s 3.5 million truck drivers a $2,571 bonus) was divided based on stream counts Spotify chose not to verify.

Estimated fraudulent redirection from legitimate rights holders: hundreds of millions of dollars — enough to cover a year of rent for tens of thousands of working musicians.

37,000,000,000

Drake’s alleged total streams on Spotify between January 2022 and September 2025 — a substantial, non-trivial percentage of which the complaint alleges were generated by bots. 37 billion streams (a number larger than the entire human population of Earth times four) shaped Spotify’s “most streamed artist of all time” title and drained the royalty pool for every other artist on the platform.

For context: if a single person streamed one song per minute, 24 hours a day, it would take over 70,000 years to generate 37 billion streams.

Societal Impact: Who Gets Hurt When Platforms Cheat

Economic Inequality: The Rich Get the Bots, The Rest Get Robbed

Spotify’s royalty pool is finite. The system described in the complaint is a machine for concentrating wealth. Bot operators — likely well-funded, technically sophisticated, and operating with impunity — pump streams toward their chosen artists and pull royalty share away from everyone else. The artists most likely to be bot-boosted are already commercially dominant; the artists most likely to lose money are the independent, emerging, and mid-tier creators who depend on streaming revenue for survival.

The complaint notes that the class of harmed rights holders includes “more than a hundred thousand” individuals. These are people whose income is determined by their streamshare percentage. A one-percentage-point swing in royalty distribution across a $9 billion pool is $90 million (enough to buy 1.8 million weeks of groceries for a family of four). Bot fraud does not move single percentage points. It moves fractions of fractions — but across 100,000 artists, those fractions add up to systematic income suppression for the people making real art.

The complaint is explicit that Spotify’s financial incentive ran directly against the interests of rights holders: removing fraudulent streams would cost Spotify advertising revenue. The company’s shareholders benefit from the inflated user counts and stream metrics that fraud produces. The people losing money are the creators at the bottom of the power hierarchy — the people who signed their rights over to Spotify’s ecosystem and had no way to audit whether they were being paid fairly.

Drake himself explained the underlying logic in a separate legal filing quoted in this complaint: “streaming and licensing is a zero-sum game.” That framing means the question is not whether artists were harmed. The question is only which artists were harmed and by how much. The answer, according to this lawsuit, is: every legitimate rights holder on the platform, for years, to the tune of hundreds of millions of dollars.

“Absent a class action, Defendants likely would retain the benefits of their wrongdoing, and there would be a failure of justice.”

Public Trust: When the Scoreboard Is Rigged, Nobody Wins

Spotify does not just control money. It controls visibility. Its playlists, its algorithmic recommendations, its “most streamed artist” charts — these function as cultural authority. When an artist gets placed on a Spotify-curated top ten playlist, their career accelerates. When a song appears in a “trending” section, radio stations notice, labels take meetings, sync licensing opportunities open. The entire ecosystem of the music industry now treats Spotify’s numbers as objective reality.

The complaint states directly that higher streamshare means “placement on top ten playlists, playlists that further increase streamshare, and other promotional attention.” Bot fraud does not just steal money. It steals cultural momentum. A bot-boosted artist climbs playlists. Real human fans of legitimate artists never see those artists surface in recommendations. The culture itself gets warped by fraudulent data, and no one outside of Spotify’s internal servers can tell the difference.

Spotify touted its platform to advertisers and investors using user and stream figures the lawsuit alleges were inflated by fake accounts. That means brands spending advertising dollars on Spotify were buying access to an audience that included bots. Investors valuing Spotify based on its 696 million MAUs were pricing a company whose headcount included fake accounts that exist only to defraud musicians. The fraud does not stay in the royalty pool. It radiates outward into every number Spotify uses to describe itself.

What Now: The People Responsible and the Levers That Exist

The lawsuit names three Spotify entities as defendants: Spotify USA, Inc. (a Delaware corporation headquartered in New York City), Spotify Technology S.A. (the Luxembourg-based parent company, headquartered in Stockholm), and Spotify AB (a wholly-owned Swedish subsidiary). All three are named collectively as “Spotify” throughout the complaint.

The lead plaintiff is Eric Dwayne Collins, known as RBX, represented by Baron & Budd, P.C. and Irpino Law Firm, LLC. The class covers all U.S. residents who held royalty rights to content hosted by Spotify from January 1, 2018 to present and whose revenue shares were diminished by the alleged fraud. That window runs seven years. The scope is enormous.

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Aleeia
Aleeia

I'm Aleeia, the creator of this website.

I have 6+ years of experience as an independent researcher covering corporate misconduct, sourced from legal documents, regulatory filings, and professional legal databases.

My background includes a Supply Chain Management degree from Michigan State University's Eli Broad College of Business, and years working inside the industries I now cover.

Every post on this site was either written or personally reviewed and edited by me before publication.

Learn more about my research standards and editorial process by visiting my About page

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