Spotify Defends Artist Payouts Amid Ongoing Criticism

Spotify has achieved a groundbreaking milestone by announcing a record payout of $10 billion (A$15.4 billion) in royalties to the music industry for 2024. This spectacular amount is noted to be the largest annual payment ever made by a single retailer in history.

The company's annual report titled Loud & Clear highlights that these payouts have remarkably increased tenfold over the past ten years. This indicates a significant trend in how the streaming service compensates its artists and the music industry as a whole.

According to the report, the 10,000th most-streamed artist received $131,000 (A$202,000) in 2024, a substantial rise from the $34,000 (A$52,000) they earned a decade earlier. Furthermore, nearly 1,500 artists have reported earning over $1 million (A$1.54 million) in royalties last year, emphasizing the financial growth opportunities within the platform.

Despite these impressive figures, many artists continue to voice their concerns regarding Spotify's compensation model. A report from music catalog buyer Duetti highlights that Spotify paid out around $3 (A$4.60) for every 1,000 streams in 2024. In comparison, artists on platforms like YouTube received $4.80 (A$7.40), while those on Apple Music garnered $6.20 (A$9.60), and Amazon Music provided $8.80 (A$13.60) per 1,000 streams. Spotify, however, disputes these findings, stating that different music platforms do not pay artists by the stream.

The debate surrounding streaming royalties continues to be a hot topic, with many musicians expressing dissatisfaction over low payouts and the challenges of distributing earnings among a growing number of artists.

As of 2024, Spotify boasts a staggering 675 million users, showcasing its vast reach in the streaming market. The company reported revenues of €15.7 billion (A$25.2 billion), marking its first full-year profit since its inception, with a net income of €1.1 billion (A$1.77 billion).

Spotify, royalties, artists