Spotify paid out $10 billion to music industry in 2024
In a new open letter, Spotify’s VP and Head of Music, David Kaefer, revealed the Swedish streaming platform paid $10 billion to the music industry in 2024.
The new figure takes Spotify’s all-time tally to almost $60 billion, and as an annual figure, the payout in 2024 is $1 billion more than in 2023, which was a previous record.
Reflecting on the past decade, Kaefer said of Spotify’s growth during that period: “In 2014, the music industry reached a low point when global recorded music revenues hit $13 billion. Spotify’s annual contribution at the time was around $1 billion, with around 15 million paying subscribers. In 2024, Spotify alone paid out a record $10 billion to the music industry — totaling nearly $60 billion since our founding.”
Kaefer also claimed that Spotify has democratised the music industry and has made it a more equal playing field for artists, stating, “Payments to the music industry have shifted from a concentrated few at the top to an increasingly diverse and growing ecosystem of artists finding success. Case in point, we estimate that, in 2014, around 10,000 artists generated at least $10,000 per year on Spotify. Today, well over 10,000 artists generate over $100,000 per year from Spotify alone. That’s a beautiful thing.”
Elsewhere in the open letter, Kaefer highlighted a recent study from MIDiA Research of independent labels and distributors which “showed that Spotify represents more than half of indies’ streaming revenue.” He added: “What this indicates is that Spotify’s model is uniquely enabling more room for more artists to find success and ultimately sustain a career in music, demonstrating real change across the music business.
Kaefer added: “Without a doubt, this has been a decade of unparalleled transformation. The global value of music copyright today sits at $45.5 billion. A decade on from its low point, how many other industries have experienced this kind of revival? Our goal is to help artists get their work in front of existing and future fans, continue to innovate on their behalf, and deliver it in a way that inspires people to pay for it. Onboarding people to paid streaming is precisely what has increased our payouts—tenfold—over the past decade.”
Spotify’s open letter comes days after avant-garde icon Björk recently lamented Spotify as the “worst thing” to happen to the music industry.
During an interview with the Swedish publication Dagens Nyheter, Björk admitted she is in a luxurious position regarding recording that’s not afforded to young artists due to the lack of money in streaming, which forces them to tour in order to earn money. She also made the case for Spotify worsening the musical landscape because artists are no longer focussing on honing their craft.
Björk stated: “The live part is, and always will be, a big part of what I do. But I’m lucky because I no longer have to raise money on touring, which younger musicians are often forced to do. In that respect, Spotify is probably the worst thing that has happened to musicians. The streaming culture has changed an entire society and an entire generation of artists.”
Additionally, Spotify recently attracted criticism ahead of the Grammys with the ‘Songwriter of the Year‘ nominees announcing a boycott of the streaming service’s party. Two of the artists boycotting the event cited Spotify’s decision to bundle audiobooks with premium packages for subscribers as a key reason for their refusal to attend. This move is alleged to have cost songwriters $150 million in royalties within 12 months of being implemented.
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