Spotify Is Closer To $40 Billion In Total Payments To The Music Industry

On March 8, Spotify held its second Stream On gathering in Los Angeles to introduce new product updates and artist-focused tools.

The business also updated its Loud & Clear yearly music royalties report, in which it disseminated a wealth of data regarding the earnings of musicians and music rights holders from the platform.

Spotify claims that “nearly 70%” of every dollar it generates from music “is paid back as royalties to rightsholders, who then pay the artists and songwriters, based on the agreed terms”.

These rightsholders include publishing companies, independent distributors, record labels, groups that manage performance rights, and collecting societies.

The most important statistic released by Spotify on Wednesday is that as of 2022, all-time payouts from Spotify to the music business will be close to $40 billion. (including both recording and publishing royalties).

Spotify declared in March of last year that, since its inception, it had paid out $30 billion to rightsholders, including $7 billion or more in 2021—up from $5 billion or more in 2020.

(In its annual report, the business stated that, as of December 31, 2022, it had paid out more than €34 billion ($35.75 billion) in royalties to specific record labels, music publishers, and other rights holders.)

Spotify also disclosed that 10,100 musicians will make at least $100,000 from Spotify alone in 2022. The business claims that’s an increase from the 4,300 performers in 2005.

According to Spotify, these artists are from more than 100 different nations around the globe. According to Spotify, streaming has reduced entry requirements. “Artists who might have had difficulty finding opportunities in the past are now finding their audiences.”

Other significant data released by Spotify on Wednesday included the fact that 57,000 artists would earn more than $10,000 on the platform in 2022. (up from 23,400 in 2017). Additionally, 1,060 musicians made more than $1 million. (up from 460 in 2017).

According to Spotify, over the past five years, the number of artists making more than $1 million as well as those making $10,000 or more has more than quadrupled.

Spotify notes that these “figures represent revenue generated from Spotify alone” and claims that “when taking into account earnings from other services and recorded revenue streams, these artists likely generated 4x this revenue from recorded music sources overall, plus additional revenue from concert tickets and merch.”

Nearly 20,000 of the 57,000 musicians who earned more than $10,000 on the platform in 2022, according to Spotify, reside outside the Top 10 music markets as defined by the IFPI. (Australia, Canada, China, Italy, France, Germany, Japan, South Korea, the U.K., and the U.S.).

Additionally, according to Spotify, the 50,000th highest-earning artist on its website in 2022 made $12,584, which was four times more than what the 50,000th highest-earning artist made in 2017.

Spotify Is Closer To $40 Billion In Total Payments To The Music Industry

On March 8, Spotify held its second Stream On gathering in Los Angeles to introduce new product updates and artist-focused tools.

Download The Radiant App To Start Watching!