Diversity Where? Report Shows Spotify Has Only Spent 10% of $100M Diversity Fund

Remember all that money Spotify “pledged” to the Creator Equity Fund?

Well, Variety reports the streaming platform has only spent 10%, roughly $10 million of the initiative worth $100 million.

In February 2022, in an attempt to save face over podcast host Joe Rogan’s COVID misinformation and racist remarks, Spotify CEO Daniel Ek apologized to the staff and listeners and pledged a massive amount of money toward “licensing, development, and marketing of music and audio content from historically marginalized groups.”

A spokesperson for Spotify emailed a statement, addressing the initiative. “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 email read. “We are able to empower and uplift underrepresented voices around the world.”

The money was designed to be spent over three years and Spotify is already behind. Sources claim Spotify lacks a well-structured and clear system for vetting and approving projects. Bloomberg and Variety report the company was set to hire an eight-person team to oversee the initiative, but that hasn’t happened due to “shifting priorities.” Spotify had yet to complete its 2023 budget at the beginning of the year and had not identified priority projects.

Several ideas were pitched but not accepted, yet some partnerships did get the green light. Working with Atlanta-based HBCU, Spelman College, Spotify is curating scholarships and curriculum for students interested in podcasting. Another initiative titled Glow highlighted music from LGBTQ artists, like newcomer Ice Spice, and podcasts like “Nailing It” and “We Said What We Said,” hosted by three Black women.

Both are set to continue through this year.

While Spotify pulled 70 ofJoe Rogan’s racially-charged episodes, the show continues to draw backlash. After an apology for the show’s host, Ek decided the streaming service wouldn’t cancel the popular show hosted by the comedian and UFC analyst.