What is Payola in music? Drake threatens to sue UMG and Spotify accusing them of using illegal “scheme” to boost Not Like Us' popularity

Music industry superstar Drake has issued a statement, threatening to sue Universal Music Group (UMG) and Spotify over allegations of engaging in "payola" to inflate the success of the song Not Like Us artificially.

On November 25, 2024, in a court filing submitted to the Manhattan Court, Frozen Moments LLC, the business entity owned by renowned artist Drake, accused Universal Music Group (UMG) of engaging in illegal promotional schemes, as per Billboard.

These alleged practices were purportedly designed to amplify the success of Kendrick Lamar’s hit song, which emerged as a pivotal track in the infamous Drizzy-Lamar lyrical rivalry that began in March 2024.

According to the Collins Dictionary, Payola in music refers to the illegal practice of paying radio stations, streaming platforms, or other music outlets to play or promote specific songs without disclosing these payments to the public.

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Understanding Payola in music highlighted by Drake’s team

Drake's legal team alleges use of payola in music (Image via Ross Gilmore/Getty Images)

As mentioned Payola in music is the act of offering bribes to secure unofficial promotional support. Throughout the history of music promotion, payola has remained a hidden but persistent presence.

Earlier, payola would be restricted only to radio stations, where the artists or their teams would give a certain compensation to play their records and make it famous among the audience and listeners.

However, as the world has evolved, as per Daily Playlists, the payola has had a big impact on music streaming platforms, especially ones with user-made playlists. Some popular playlist creators ask artists to pay, collaborate, or interact with them to include their songs in playlists. In this way their music or album gets a sudden rise in fame.

According to Digital Music News, payola is illegal under the Communications Act of 1934 and the regulations established by the Federal Communications Commission (FCC).

Over the years, the federal government has conducted numerous investigations and inquiries to eradicate this practice, including efforts led by Congress. Despite these measures, payola continues to persist in the music industry today.

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Drake takes legal aim at UMG and Spotify over alleged scheme for boosting song

On Monday, according to The Verge, a court filing was submitted in Manhattan in which Drake's legal team alleged that UMG charged Spotify 30% less than its standard licensing rates for the song Not Like Us —

"UMG charged Spotify licensing rates 30 percent lower than its usual licensing rates for “Not Like Us” in exchange for Spotify affirmatively recommending the Song to users who are searching for other unrelated songs and artists," Drizzy's lawyer wrote.

Moreover, the lawyer stated that neither UMG nor Spotify have disclosed the compensation received in exchange for promoting the song to listeners —

"Neither UMG nor Spotify disclosed that Spotify had received compensation of any kind in exchange for recommending the song," the lawyer further added.

According to Billboard, the lawyer further alleged that Universal Music Group did not leave the success of the song to luck or regular business strategies. Instead, they intentionally orchestrated a campaign to influence the reach of the song.

Not only this but as per Billboard, Drake's legal team further alleged that UMG paid influencers to promote the song on social media and employed large numbers of bots to artificially inflate the song's statistics.

In response to the allegations made by Drake's team, a spokesperson for UMG, James Murtagh-Hopkins, told Billboard that the company adheres to the highest ethical standards in its promotional and marketing campaigns, firmly denying the rapper's claims —

"The suggestion that UMG would do anything to undermine any of its artists is offensive and untrue. We employ the highest ethical practices in our marketing and promotional campaigns. No amount of contrived and absurd legal arguments in this pre-action submission can mask the fact that fans choose the music they want to hear," the UMG spokesperson said.

As the legal proceedings continue, neither Kendrick Lamar nor Drake has made any public statements regarding the allegations as of now.

According to Forbes, Kendrick Lamar's Not Like Us became the best-selling song, with 15,000 copies sold nationwide. Additionally, it debuted at number one on the Billboard Hot 100 chart.