If you’re a music fan, you’ve probably noticed a rift forming in the digital music world. On one side, you have Bandcamp, a platform celebrated for putting artists first. On the other, Spotify, the streaming giant, is facing a growing boycott from musicians who’ve had enough. The breaking point? Revelations that Spotify’s CEO is investing heavily in AI military technology.
This isn’t just another industry squabble. It’s a clash of philosophies about what music is worth and where the money should go. While fans on Bandcamp were sending over $3.5 million directly to artists in a single day this August 1, a wave of musicians were pulling their catalogs from Spotify. As the band Xiu Xiu put it, using what they call “stolen money to murder people for profit is beyond the pale”.
So, what’s really going on? Let’s break down why artists are leaving Spotify and why platforms like Bandcamp are becoming a haven for creators.
The Bandcamp Model: Putting Artists First
For years, Bandcamp has been the indie world’s best-kept secret, but its artist-first approach is getting harder to ignore. The platform functions less like a streaming service and more like a digital record store and merch table, giving artists control and a real paycheck.
The biggest testament to this is Bandcamp Friday. Started during the pandemic to help musicians who lost tour revenue, it’s a day where Bandcamp waives its own fees, meaning nearly 100% of the money goes directly to the artist. The event on August 1, 2025, was a massive success, with fans spending $3.5 million in just 24 hours. Since 2020, these Fridays have generated over $140 million for artists.
Even on a regular day, the numbers are compelling. Artists on Bandcamp receive an average of 82% of every sale, with the money typically hitting their account in 24-48 hours. Compare that to the fractions of a penny per stream on other platforms. The platform’s commission is a straightforward 10-15% on sales, and its interests are simple: it only makes money when artists do.
More importantly, Bandcamp lets artists own their fan relationships. They can collect email addresses, message supporters directly, and sell physical merchandise like vinyl and t-shirts right alongside digital downloads. It’s a model built for sustainability, not just scale. 2
The Spotify Boycott: AI Weapons and a Decade of Frustration
While Bandcamp celebrated a banner day, Spotify was dealing with a PR nightmare. A growing list of artists, including Xiu Xiu, Deerhoof, and King Gizzard & the Lizard Wizard, announced they were pulling their music from the platform.
Pennies for Artists, Millions for Missiles: The Real Reason Musicians Are Leaving Spotify
The catalyst was Spotify CEO Daniel Ek’s massive personal investment in Helsing, a German defense company specializing in AI for military use, including autonomous drones and airstrike software. Through his firm Prima Materia, Ek has poured hundreds of millions into the company and serves as its chairman.
For many artists, this was a moral line crossed. Deerhoof stated bluntly, “We don’t want our music killing people”. Xiu Xiu’s Jamie Stewart connected the dots between the platform’s notoriously low payouts and the investment, calling Spotify a “complete kleptocracy” long before the AI weapons controversy.
This wasn’t just a sudden outrage; it was the final straw. For over a decade, musicians have criticized Spotify for a model that pays as little as $0.003 per stream. The feeling is that the wealth artists create is being used to fund ventures they find ethically abhorrent. For many indie artists who earn very little from Spotify anyway, the decision to leave became an easy one.
What Does This Mean for You?
As a listener, you’re now at the center of this debate. The choice is becoming clearer than ever.
- Spotify offers convenience and discovery. Its algorithms can introduce you to your next favorite band, and its library is nearly infinite. But it’s a model built on passive consumption, where your subscription fee is pooled and distributed in ways that overwhelmingly favor superstars, leaving little for smaller artists. 3
- Bandcamp offers direct and meaningful support. Buying an album or a t-shirt on Bandcamp is a direct investment in an artist’s career. You get high-quality downloads, and the artist gets the funds they need to keep creating. 4
The great divergence of 2025 shows that artists and fans are increasingly aware of their power. They are choosing to build and support ecosystems that align with their values. While Spotify remains the biggest player, the growing movement towards platforms like Bandcamp proves that for many, the future of music isn’t just about access—it’s about ownership, community, and ethical support.
- https://www.recordoftheday.com/news-and-press/third-bandcamp-friday-of-the-year-generates-over-35-million-for-independent-artists-in-just-24-hours ↩︎
- https://www.musicradar.com/music-industry/bandcamp-is-not-built-to-break-you-as-an-artist-thats-not-our-strength-bandcamp-explains-why-it-still-serves-as-an-integral-platform-for-self-releasing-musicians-and-how-to-get-the-best-from-it ↩︎
- https://musconv.com/why-is-bandcamp-better-than-spotify/ ↩︎
- https://www.musicyouremissing.org/post/the-ethics-of-the-music-economy-why-bandcamp-s-artist-first-model-matters-more-than-ever-in-2025 ↩︎
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