Global audio streaming giant Spotify announced on Tuesday that it paid $10 billion to the music industry in 2024, bringing its total payouts since inception to nearly $60 billion.
The company emphasized this milestone as part of its effort to counter claims that it inadequately compensates artists for their work.
Spotify clarified that the payouts include revenue shared with other industry partners, such as publishers, not just artists.
The statement comes against the backdrop of a growing music streaming market. According to the International Federation of the Phonographic Industry (IFPI), over 500 million people worldwide are now paying subscribers to streaming services. Spotify itself reported 252 million subscribers in its Q3 2024 filing, with more than 60% of its 574 million users relying on its ad-supported free tier.
In a blog post, David Kaefer, Spotify’s Vice President of Music Business, addressed the importance of the figures. “For a lot of people, those numbers might go in one ear and out the other. And they’d perhaps ask why Spotify keeps shouting about it,” Kaefer wrote. “It’s because the system we’ve built together is working, and where we are now is only the beginning. A world with 1 billion paying listeners is a realistic goal we should collectively set.”
The company also highlighted its contribution to global streaming revenue, stating that over 10,000 artists now earn more than $100,000 annually through Spotify alone. This marks a significant increase compared to 2014, when over 10,000 artists were earning just $10,000 annually from streaming revenues.
Despite Spotify’s optimistic outlook, criticism persists about its payment structure, particularly from independent artists. A recent report by music financing platform Duetti highlighted disparities in per-stream payouts among major platforms. According to the report, Spotify paid $3.0 per 1,000 streams in 2024, lagging behind competitors such as Amazon Music ($8.8), Apple Music ($6.2), and YouTube ($4.8).
Duetti’s report also noted that while Spotify has raised subscription prices, the average payout per stream has declined. Additionally, Spotify’s Discover Mode, a feature allowing artists to prioritize their music in algorithms in exchange for reduced revenue per stream, has been criticized for forcing artists to generate more streams to maintain their earnings.
Spotify dismissed these claims, labeling the report’s figures as “ridiculous and unfounded.” A company spokesperson explained, “No streaming service pays per stream because that approach would incentivize services to minimize streams. Instead, we encourage engagement, which drives higher payouts overall.”
