A lot of you have written to me, asking me to write a bit about Findaway's rights grab. I think those of you who wrote knew what I was going to say. 😇
For those of you who aren't aware of what's going on with Findaway, I'm going to give you the quick & dirty and then a bit of context. Forgive some of the shorthand here: I have about 3,000 words of fiction to finish today, and I'm trying to get this done while Dean is doing a webinar about 6 feet away from me.
Anyway...on Thursday, February 15, they posted a new Terms of Service that would go live on March 15. It said:
Accordingly, you hereby grant Spotify a non-exclusive, transferable, sublicensable, royalty-free, fully paid, irrevocable, worldwide license to reproduce, make available, perform and display, translate, modify, create derivative works from (such as transcripts of User Content), distribute, and otherwise use any such User Content through any medium, whether alone or in combination with other Content or materials, in any manner and by any means, method or technology, whether now known or hereafter created, in connection with the Service, the promotion, advertising or marketing of the Service, and the operation of Spotify’s (and its successors’ and affiliates’) business, including for systems and products management, improvement and development, testing, training, modeling and implementation in connection with the Spotify Service. Where applicable and to the extent permitted under applicable law, you also agree to waive, and not to enforce, any “moral rights” or equivalent rights, such as your right to object to derogatory treatment of such User Content. Nothing in these Terms prohibits any use of User Content by Spotify that may be taken without a license.
I was going to underline the egregious parts, but it's all egregious.
It sparked an immediate and forceful backlash.
Today when I went to look at the TOS, it had changed. It now says:
Accordingly, and without limiting any payment obligations under Section 5 herein, you hereby grant Spotify a non-exclusive, worldwide license to reproduce, make available, perform, display, distribute, and otherwise use your User Content on and in connection with the Spotify Service and the Distribution Services (as defined in Section 5). This license permits the use of the User Content by Spotify for systems and product management and development, testing, training, modeling, and implementation in connection with anti-piracy and anti-fraud measures and the discoverability, promotion, marketing, curation, distribution, and sale (or developing the user experience in connection therewith) of the User Content and the Spotify Service. Spotify’s distribution partners also have the right to distribute your User Content via the Distribution Services, subject to your right to discontinue distribution as described below in this Section 4 and/or to opt out from particular Distribution Partners as described in Section 5. For the sake of clarity, these Terms do not authorize Spotify to use User Content to create a new book, ebook or audiobook, or to use User Content to create a new, machine-generated voice without your permission.
Note that some of the terrible language is gone, such as waiving moral rights and the creating of derivative works. It still will let them use your product to train AI though and other stuff, but to my surprise and their credit, they did change their TOS.
Does that mean that after next week, you will find my work on Findaway? Um, no. You will not. As a friend of mine said, they've shown their true colors. Musicians have had trouble with Spotify for years and these are Spotify-inspired changes.
Spotify bought Findaway in 2022, paying about $123 million dollars. At the time, Spotify CEO, Daniel Ek, told investors that he was "confident that audiobooks will deliver the kind of earnings that investors are looking for, with profit margins north of 40 percent."
Over the past 18 months or so, Spotify has tinkered with Findaway in a variety of ways, mostly to do with the way that they're paying content providers. Then this new TOS rights grab, which is not unexpected. In fact, it's right on time.
Remember, what Spotify wants to do with Findaway and Anchor and all of the other services it is buying is increase profit margins for investors. The company does not care about providing a good service for its content partners. Because this is a giant corporation which is publicly traded, it has corporate goals that have to do with investors, making big money, and profit margins.
If Findaway does not earn the kind of money that Spotify hopes, then Findaway will be discontinued, broken off and sold, or dissolved.
In other words, don't expect that lovely tiny company that started in indie audiobook distribution to ever return.
We will be moving our audiobooks to our own online store, where we will make more than pennies on the dollar. We'd been planning to do that, but now we have incentive.
Btw, the reason that I do not put fiction on Patreon is similar. Long ago and faraway, Patreon tried a rights grab. (It might have been an accidental rights grab, since the language they used was not entirely legal.) Nonetheless, I decided then and there not to put anything with major resale value on Patreon. I will eventually have a Patreon-like service for fiction on my website. Plans are in the works now.
The more we control as artists, the better off we are. And when a corporation shows you its true colors, pay attention. Or as Maya Angelou said, "When someone shows you who they are, believe them the first time."