In a groundbreaking revelation, Spotify has disclosed that it paid a staggering $10 billion in royalties to artists in just the year 2024. This significant figure, unveiled alongside further insights into the company's financial data, highlights a remarkable shift in the music industry's revenue landscape over the past decade.
The report indicates that annual payouts to the music industry have surged tenfold since 2014. Last year alone, more than 12,500 artists generated over $100,000 in royalties, emphasizing the growing opportunities for artists on the platform.
According to Spotify, the music industry's overall revenues from streaming have more than doubled from $13 billion in 2014—of which Spotify contributed $1 billion—to $28 billion in 2023, fueled by an impressive base of over 500 million paying subscribers across various music platforms.
Among this growing pool, over 200 artists have crossed the $5 million threshold in royalties, a considerable increase from just one artist in 2017. Additionally, 1,500 artists have surpassed the $1 million milestone.
Spotify has also disbursed $4.5 billion to publishing rights holders in the past two years. This payout includes payments to songwriters, publishers, performing rights organizations (PROs), and various collecting societies.
Moreover, Spotify's data showcases a burgeoning interest in multilingual music. In 2017, only songs in English and Spanish surpassed $100 million in royalties. By 2024, eight languages—English, Spanish, Italian, Japanese, Korean, French, Portuguese, and German—achieved this milestone, demonstrating the platform's expansive global reach.
The report notes that music in 17 languages has surpassed the $1 million mark in royalties, while 50 languages have produced artists who earned over $100,000.
Spotify also clarified its payout structure, revealing that one million streams equal approximately $10,000—or $0.01 per stream. However, this figure isn't static; payouts depend on stream share, as artists are compensated not on a per-song basis but rather through their overall share of plays.
Today, nearly 25% of global recorded music revenue is attributable to Spotify, a marked rise from 15% in 2017. This figure encompasses physical sales, touring, merchandise, and synchronization rights, further underscoring Spotify's vital role in the music industry’s ecosystem.
