Spotify paid $10 billion to artists, producers and music labels in 2024

Spotify announced that in 2024 it paid $10 billion to the music industry. It is worth noting that these funds did not all go directly to artists - some were also received by partners such as producers and music labels.

Here's What We Know

Currently, more than 10,000 artists earn over $100,000 a year on the platform. More detailed information can be found on a special page. Some artists earn huge amounts of money: 1,250 musicians have earned more than $1 million, and 60 have earned more than $10 million in just one year from Spotify.

For comparison, ten years ago, in 2014, only about 10,000 artists earned at least $10,000 a year from the platform. In total, Spotify has paid nearly $60 billion to the music industry since its launch.

According to the Duetti platform, Spotify pays $3 per 1,000 plays, while YouTube, Apple Music, and Amazon Music pay $4.8, $6.2, and $8.8 for the same number of plays, respectively (data for 2024).

One of the reasons for Spotify's success is its ability to retain users. The platform offers playlist selections and an AI DJ feature that encourages listeners to return. Another important factor is the free plan with advertising, which allows attracting new users - 60% of premium subscribers started at this level.

There are more than 500 million paid subscribers on various music streaming platforms worldwide. Spotify has about 252 million of them. The company believes that reaching 1 billion paid subscribers in the future is quite realistic.

Source: Spotify