In a brand new report revealed by Spotify’s VP and Head of Music, David Kaefer, he says the streaming big paid out $10 billion to the music business in 2024, and has paid out almost $60 billion since its inception.
Within the weblog submit – titled On Our $10 Billion Milestone and a Decade of Getting the World to Worth Music – Kaefer says “the system we constructed collectively is working, and the place we are actually is simply the start”.
“There’s a vibrant market of streaming providers for various kinds of shoppers, every doing its half to normalize the conduct of paying for music streaming,” he writes.
“It’s been a collective effort. However there are some things particular to Spotify that make it not solely the most well-liked subscription streaming service but additionally the best paying.”
Kaefer notes that the corporate’s blueprint – which he says is “working” – revolves round three key ideas: retention by way of “personalisation, curation and product innovation”; the existence of an ad-supported free tier to lure in potential paying prospects; and the provision of Spotify in lots of markets at native worth factors.
“At the moment, we’re seeing large development throughout markets like India, Brazil, Mexico and Nigeria. These are locations the place our investments are paying off,” he says.
The submit additionally notes that ten years in the past in 2014, round 10,000 artists generated a minimum of $10,000 on Spotify, whereas as of 2024, “effectively over” 10,000 artists generate over $100,000 per yr on the platform.
“I not too long ago learn an information level from economist Will Web page that mentioned extra music is launched in a single day than there was within the entirety of 1989,” Kaefer writes. “Within the pre-streaming period, you had been both within the membership or not. If you happen to didn’t have a label deal or the means to distribute your music worldwide, you weren’t one of many few thousand artists on cabinets at a report retailer or one of many 40 in rotation on a radio station.”
Whereas the $10 billion determine might sound spectacular – and the rise in high artists incomes extra on the platform appears to be like promising – many proceed to notice how Spotify and different streaming providers have broken artists’ means to monetise and earn truthful compensation for his or her music, which basically drives these platforms’ revenues.
Icelandic artist Björk, for instance, not too long ago known as Spotify “the worst factor that has occurred to musicians”, saying that dwindling payouts are rising the demand for artists to embark on gruelling excursions to make ends meet. “Streaming tradition has modified a complete society and a complete era of artists,” she mentioned.
Elsewhere, Anthrax drummer Charlie Benante mentioned final yr that “Spotify is the place music goes to die”, including: “You’d most likely make more cash promoting lemonade on the nook.”
Spotify CEO Daniel Ek additionally drew the ire of the music creator group final yr when he in contrast low royalty payouts to skilled sports activities, saying: “Soccer is performed by tens of millions of individuals – however there’s a really small quantity that may stay off taking part in full time”.
Learn David Kaefer’s full weblog submit by way of the Spotify Newsroom.
