A new report by Liz Pelly for Harper’s Magazine alleges that Spotify has been using “ghost artists” to populate playlists in order to minimize royalty payments and boost profits. This practice, known as Perfect Fit Content (PFC), reportedly affects genres like jazz, classical, ambient and lo-fi hip-hop. Introduced in 2017, the PFC program involves partnering with production companies—many of which are based outside the U.S.—to create music that is distributed under hundreds of artist profiles.

These profiles often lack any substantial background or presence, making it difficult for listeners to trace the true creators behind the tracks.

This controversy follows earlier claims from Drake that Spotify gave Kendrick Lamar’s “Not Like Us” a popularity bump, protests from Kate Nash outside their London headquarters and a narrowly avoided copyright infringement lawsuit brought forward by Eminem.

According to the Consequence, this strategy allows Spotify to increase the amount of content streamed at a lower cost, as the royalties for these “ghost artists” are less than those paid to established musicians.

These cost-cutting measures follow Spotify making a shocking $4.1 billion in revenue following large-scale layoffs and a confirmed hike in the price of its premium subscription.

Former Spotify staff members reveal that playlist editors were often unaware of the origins of the music, with the internal motto becoming, “If the metrics went up, then let’s just keep replacing more and more.”

While Spotify has denied creating music in-house, describing these claims as “categorically untrue,” the controversy has only intensified, particularly after CEO Daniel Ek’s remark that “creating content” costs “close to zero.”

Critics of the PFC program argue that it undermines the platform’s commitment to fair compensation for artists.