Global music-streaming frontrunner, Spotify, has recently revealed a staggering payout of $10 billion to the music industry for the last year. The firm’s generous contributions to the industry, amounting to an approximate $60 billion since its inception, were also highlighted.
This statement comes amidst ongoing criticism alleging inadequate artist remuneration, claims Spotify vehemently disputes. It is important to mention that these payouts extend beyond artists, involving other essential collaborators in the industry such as publishers.
As per the International Federation of the Phonographic Industry (IFPI), the global count of paying music streaming users exceeds 500 million. Spotify proudly boasts a significant share, with 252 million subscribers as of its Q3 2024 disclosure. Spotify further affirmed that 60% of its users benefit from its ad-supported, free tier.
David Kaefer, Spotify’s Music Business VP, emphasised on their success story, aiming for a “world with 1 billion paying listeners”.
There has been documentation of Spotify’s substantial role in stream-based global revenue. Impressively, over 10,000 musicians earn in excess of $100,000 per annum through streaming income.
Regrettably, a recent note from Duetti, the music financing platform, indicated that Spotify’s low payout rate of $3.0 per 1,000 streams was balanced out with their functionalities like Discover Mode, a feature promoting better track visibility.
The sector’s increasing competitiveness was also stressed upon, with approximately 99,000 tracks being added to streaming platforms daily. This was accompanied by a surge in global streams, recording a 14% increment year-on-year, reaching 4.8 trillion.
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