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Spotify Has Spent Less Than 10% of Its $100 Million Diversity Fund

 1 year ago
source link: https://finance.yahoo.com/news/spotify-spent-less-10-100-120000271.html
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Spotify Has Spent Less Than 10% of Its $100 Million Diversity Fund

Ashley Carman
Thu, March 23, 2023, 5:54 AM GMT+9·4 min read
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(Bloomberg) -- Spotify Technology SA’s $100 million Creator Equity Fund, designed to promote diversity in music and podcasts following controversial comments by the company’s star podcaster Joe Rogan, spent less than 10% of the money on that work as it rounded out its first year.

Most Read from Bloomberg

The initiative got off to a slow start hiring staff and has suffered from shifting priorities, according to people familiar with the effort who asked not be identified discussing an internal matter. At the start of the year, the fund was still finalizing its 2023 budget and had yet to determine its priority projects, according to a memo obtained by Bloomberg News.

Another Spotify fund aimed at promoting diversity in podcasts suffered after that business was hit by layoffs last year, a union representing workers said.

Spotify said Wednesday spending has exceeded $10 million, including funds for music, administration and other areas. It has backed a number of initiatives in its first year, including Glow, which highlights music from LGBTQ artists, and Nailing It, a podcast hosted by three Black women. The company this week announced an expanded partnership with Spelman College, a historically Black women’s school in Atlanta, that will include scholarships and curriculum for students interested in podcasting.

“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,” the spokesperson wrote in an emailed comment. “We are able to empower and uplift underrepresented voices around the world.”

The world’s largest music streaming service is hardly alone in facing challenges in following through on such commitments. A recent study by McKinsey & Co. called for greater transparency in how companies allocate money to promote racial justice.

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