Spotify has reported that in 2024 it paid $10 billion to the music trade – a brand new document. It ought to be famous that this cash didn’t all go to artists, varied companions resembling publishers are additionally within the combine.
The streaming service says that proper now over 10,000 artists make over $100,000 every per 12 months on Spotify. You possibly can see a extra detailed breakdown right here. Some are making huge bucks – 1,250 artists remodeled $1 million and 60 remodeled $10 million in a 12 months from simply Spotify.
For context on how issues have modified, a decade in the past in 2014 the statistic was round 10,000 artists making no less than $10,000 a 12 months from Spotify alone. Thus far, Spotify has paid out almost $60 billion to the music trade.
Spotify pays $3.0 per 1,000 streams, based mostly on knowledge from Duetti (a music financing platform), whereas YouTube, Apple Music and Amazon Music pay $4.8, $6.2 and $8.8 per 1,000 streams (numbers for 2024).
Spotify cites retention as one of many key causes for its success – issues like curated playlists and the AI DJ characteristic have listeners coming again. The ad-supported free tier can also be vital because it helps onboard customers – 60% of Premium subscribers began on the advert tier. Launching in a number of markets and setting costs match for these markets is touted as one more reason for fulfillment.
Proper now, there are over 500 million paid subscribers in whole for the varied music streaming providers. Spotify itself has 252 million subscribers or so. Nevertheless, the corporate thinks that reaching 1 billion paid subscribers throughout all providers is doable within the close to future.