Spotify sound streaming company said on Tuesday that it paid $ 10 billion in the music industry last year. The company added that it has given nearly $ 60 billion to industry payments since its establishment.
This is another effort from Spotify to dismantle reports that the company does not reward artists correctly for their work. The key point to note is that payments also include money given to other partners, such as publishers.
According to Report of the International Federation of Phonographic Industry (IFPI)A musical body representing artists, there are over 500 million that pay music streaming customers worldwide. Spotify has over 252 million subscribers According to the deposit of Q3 of 2024. Spotify said more than 60% of its current users were in the free -backed ads.
“For many people, these numbers can go to one ear and outside the other. And they might ask why Spotify continues to shout about it,” said David Kaefer, vice president of Spotify music business, in one position.
“It’s because the system we have created together works and where we are now is just the beginning. Today, there are more than 500 million listeners who pay for all music flow services. A world with 1 billion listeners pay is a realistic target that should to put collectively. “
The company is reported various Reports that note that Spotify contributes a significant portion of world flow revenue. He also said that more than 10,000 artists earn more than $ 100,000 a year from flow revenue. In 2014, more than 10,000 artists earned more than $ 10,000 a year, he said.
Earlier this month, A report from Duetti music funding platform He noted that percentages per flow for independent artists are stabilized after a few years of fall. However, Spotify was the lowest in these payments, with $ 3.0 per 1,000 currents. Other platforms such as Amazon Music, Apple Music and YouTube paid $ 8.8, $ 6.2 and $ 4.8, respectively, per 1,000 currents in 2024.
The report also pointed out that while Spotify has raised prices for its plans over the years, average payment has declined.
Spotify rejected Duetti’s allegations and challenged the report number and “non -spread speculation” across the boat.
“These allegations are ridiculous and unfounded. No continuous flow service pays per current because this approach will encourage continuous flow services to minimize flows. We follow the opposite approach.
In addition, the report emphasized that Spotify’s Discover feature, which allows artists to get their songs to be better highlighted through algorithms while receiving a pay cut, contributes to a growing number of flows. This means that artists have to get much more to earn the same amount of money.
There is also an increase in competition to get streaming dollars. According to Luminate’s Annual Music Report, an average 99,000 pieces were uploaded to flower platforms a day. The report also noted that world streams hit 4.8 trillion-a 14% jump on a yearly basis.
The story has been informed with Spotify’s response to the Duetti report.
