Neil Young May Have Cost Spotify $2 Billion
The market value of Spotify has dropped by over $2 billion since Neil Young called out the streaming platform for "spreading fake information about vaccines," various outlets reported.
Last week, Young demanded the removal of his catalog from the streaming platform in protest of the company's multi-million dollar deal with broadcaster Joe Rogan, who’s been identified as a source of inaccurate information surrounding the COVID-19 vaccine through his Joe Rogan Experience show.
Joni Mitchell later called for her own catalog to be deleted in an act of support for Young’s position, linking to a letter from a group of health experts who criticized Spotify and called on the platform to implement a misinformation policy. "By allowing the propagation of false and societally harmful assertions," the letter reads, "Spotify is enabling its hosted media to damage public trust in scientific research and sow doubt in the credibility of data-driven guidance offered by medical professionals."
In a new development, Nils Lofgren of the E Street Band and Young’s Crazy Horse backing group also moved to have his catalog removed. In a post on Young’s website, he voiced his support for the health experts.
“When these heroic women and men, who’ve spent their lives healing and saving ours, cry out for help you don’t turn your back on them for money and power. You listen and stand with them," he wrote. "[W]e’ve now gotten the last 27 years of my music taken off Spotify. We are reaching out to the labels that own my earlier music to have it removed as well. We sincerely hope they honor our wishes, as Neil’s labels have done.” He added: “We encourage all musicians, artists and music lovers everywhere to stand with us all, and cut ties with Spotify.”
The platform’s share price reportedly dropped by 6 percent between Jan. 26 and Jan. 28, even though relevant stock indexes showed a modest rise over the same period. On Jan. 27 Spotify stock hit a 19-month low.
“For Spotify investors, the concern is that the artist exodus could snowball in the coming days and drive a material number of customer cancellations,” Variety wrote. “Hashtags #CancelSpotify, #DeleteSpotify and #ByeSpotify were trending on social media in the wake of Young’s ultimatum and Spotify’s decision to remove his music.” Forbes advised investors to consider buying stock in Spotify rivals, noting the corporation’s “volatile” trading characteristics in recent months.