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(Credit: Freguesia de Estrela)

Music

Spotify outgoing payments for 2021 revealed

@TomTaylorFO

Spotify outgoings to the music industry for 2021 have been revealed with the streaming giant dishing out a whopping $7billion (£5.3billion) to artists last year.

This news was posted on Spotify’s own Loud and Clear website which was launched last year to increase pay transparency after an open letter was signed by a plethora of musicians demanding more equity in the streaming world.

At the top end of the scale, apparently, 130 artists received pay-outs of more than $5million, while around 56,200 breached the $10,000 mark as subscribers continued to increase.

However, naturally, the payments received from Spotify to artists are subject to further splits as labels, publishers and everyone else in the industry takes a cut from the final pooling. Thus, while Spotify might pay an artist $10,000, their actual net take-home is likely to be significantly lower than this. 

These figures also follow a tempestuous time in the streaming service’s history after Neil Young sent the stock price tumbling by a mind-bending $2billion amid the Joe Rogan controversy. However, since then, the latest financial reports imply the company has rebounded. 

Once more, these revealing figures have ignited the multifaceted debate around streaming and whether it is beneficial for artists or a great plague. Spotify will argue that the figures are proof of their support for artists, whereas others will claim that with over 406 monthly active users the payments should be higher.