“Close to Zero”

Daniel Ek’s “close to zero” claim ignores reality: even basic music production costs hundreds, and professional releases cost thousands plus time. Treating it as cheap “content” misrepresents the true investment behind it, especially on Spotify.

Ivan Tomić

31. März 2026March 31, 2026 · 7 Min. Lesezeit7 min read

Daniel Ek’s Delusion and the Real Cost of Making Music#

On May 29, 2024, Spotify CEO Daniel Ek tweeted something that sent shockwaves through the music community: “Today, with the cost of creating content being close to zero, people can share an incredible amount of content”. He later attempted to walk back the statement, calling his definition of “content” (yes, he called music “content”) “clumsy” and “very reductive”. But the damage was done, revealing just how disconnected the billionaire architect of modern music streaming is from the actual economics of music creation.​

Let me be clear: Daniel Ek has no idea what he’s talking about. The cost of creating music is not “close to zero” — not even remotely. And I’m going to prove it by breaking down the actual costs of producing music across three different scenarios, at three different investment levels, across three different genres.

The Three Scenarios#

To illustrate how absurd Ek’s statement is, let’s examine three realistic production scenarios:

  1. The EDM Producer — Solo bedroom producer making electronic music (supposedly the “cheapest” route since you “only need a laptop”)

  2. The Rock Band — Four-piece group with guitars, bass, drums, and vocals

  3. The Van Dweller — Solo singer-songwriter living in a van with just a guitar

For each scenario, I’ll break down costs at three levels: Basic (free/minimal cost tools), Medium (premium consumer tools), and Professional (industry-standard production).

Scenario 1: The EDM Producer#

Basic Level (Free/Minimal Tools)#

Even at the absolute bare minimum, an EDM producer needs:

Total Basic Cost: $325–625 (first year), then $25/year recurring

But wait — this doesn’t include YouTube Content ID ($4.95 per single annually), which means you can’t monetize your music on YouTube without paying Spotify’s competitor. It also doesn’t include any sample packs, plugins, or the fact that free DAWs are severely limited.​

Medium Level (Premium Consumer Tools)#

Now let’s step it up to what most serious independent producers actually use:

Total Medium Cost: $1,492–2,456 (first year), then $294–408/year recurring

Professional Level (Industry Standard)#

This is what you need to compete at a professional level:

Total Professional Cost (single track): $2,549–4,899, with $100–300/year recurring costs

For a full EP (5 tracks), you’re looking at $4,049–9,199 in the first year.

Scenario 2: The Rock Band#

This is where Ek’s “close to zero” claim becomes truly laughable.

Basic Level (Used Gear, DIY Everything)#

Total Basic Cost: $1,425–1,925, plus $2,400–4,800/year for practice space

Medium Level (New Mid-Range Gear)#

Total Medium Cost: $7,914–12,714 (first year), then $3,914–6,314/year recurring

Professional Level (Studio Production)#

Total Professional Cost (5-song EP): $5,800–12,050, plus $300/year recurring

This doesn’t even factor in instrument maintenance, string replacements, drumhead replacements ($75–300 for a full set), travel to the studio, or any of the other countless expenses.​

Scenario 3: The Van Dweller#

This is perhaps the most telling scenario — someone who has deliberately minimized their living expenses to pursue music. Surely this is “close to zero,” right? Wrong.

Basic Level (Absolute Minimum)#

Total Basic Cost: $345–765, plus $45–65/year recurring

But this assumes recording on a phone provides acceptable audio quality (it often doesn’t) and that the van dweller has reliable internet access for uploading music.

Medium Level (Semi-Professional Mobile Setup)#

Total Medium Cost: $1,764–2,914 (first year), then $314–414/year recurring

Professional Level (Remote Professional Production)#

Total Professional Cost (5-song EP): $4,700–8,150, plus $300/year recurring

The Reality Ek Refuses to See#

When artist Cheryl B. Engelhardt responded to Ek’s tweet, she revealed she’d invested “thousands of dollars” into her Grammy-nominated album — an album she produced and mixed herself. Indie artist Shimmer Johnson called Ek “out of touch,” noting how his wealth was “built on the hard work and time of others”. Primal Scream’s bassist Simone Marie Butler called him an “out of touch billionaire”.​

They’re all correct. Daniel Ek’s statement wasn’t just tone-deaf — it was a fundamental misunderstanding (or deliberate misrepresentation) of what music creation requires. Yes, the barrier to entry has lowered compared to the pre-digital era when you needed access to expensive recording studios. But “lower barriers” doesn’t mean “close to zero cost.”

Even the cheapest possible music production — a solo producer with a used laptop and free software — requires hundreds of dollars in initial investment and recurring annual costs. Scale up to anything approaching professional quality, and you’re looking at thousands of dollars per release. And this doesn’t even account for the most expensive resource of all: time. The hundreds or thousands of hours spent learning production techniques, practicing an instrument, writing songs, and refining mixes.

The Audacity of It All#

What makes Ek’s statement particularly galling is the timing. He made these comments just before Spotify announced its second price increase in a year, raising individual subscriptions to $11.99/month. So music costs “close to zero” to make, but Spotify needs to charge listeners more while continuing to pay artists fractions of pennies per stream?​

The math doesn’t work. The logic doesn’t work. The statement reveals a CEO who sees music not as art requiring investment, skill, and resources, but as “content” — an infinite, valueless commodity to be monetized by his platform while the actual creators struggle to break even on their production costs.

Daniel Ek doesn’t make music. He’s never had to save up for a guitar, a laptop, or studio time. He’s never had to choose between paying for distribution or paying for groceries. He’s never experienced the reality that every independent musician knows: making music is expensive, time-consuming, and often financially unsustainable.

Note: prices here are vague estimates based on current market ranges, not exact science — gear fluctuates, deals pop up, your location tweaks it all.

#Daniel Ek#Music#Spotify

Written by

Ivan Tomić

Chasing light, high and low.

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Contents

16 sections

  1. Daniel Ek’s Delusion and the Real Cost of Making Music
  2. The Three Scenarios
  3. Scenario 1: The EDM Producer
  4. Basic Level (Free/Minimal Tools)
  5. Medium Level (Premium Consumer Tools)
  6. Professional Level (Industry Standard)
  7. Scenario 2: The Rock Band
  8. Basic Level (Used Gear, DIY Everything)
  9. Medium Level (New Mid-Range Gear)
  10. Professional Level (Studio Production)
  11. Scenario 3: The Van Dweller
  12. Basic Level (Absolute Minimum)
  13. Medium Level (Semi-Professional Mobile Setup)
  14. Professional Level (Remote Professional Production)
  15. The Reality Ek Refuses to See
  16. The Audacity of It All