Spotify Shares Transparency Report on Music Income


Launched in 2008, Spotify is a digital streaming service that gives entry to over 82 million tracks together with hundreds of thousands of podcasts. At the moment, it has over 400 million customers globally.

As BBC Information studies, Spotify has round eight million artists who’ve uploaded tracks to its service, with 60,000 new songs added on daily basis. 

Whereas it maintains its reputation amongst customers, the streaming big has confronted criticism from the music business over its division of funds to artists. In February 2021, Insider found that Spotify pays artists as little as $0.0033 to $0.0054 per stream, that means that on common, round 250 streams could be wanted for an artist to earn one greenback. 

In response to criticisms, Spotify created its Loud and Clear web site final 12 months to extend transparency round its funds, stating that “artists deserve readability concerning the economics of music streaming.”

A few of the key takeaways of this report are as follows:

  • Spotify paid music rights holders extra money than ever in 2021: $7+ billion, up from $5+ billion in 2020
  • Over 1,000 artists generated $1 million on Spotify alone, 450 artists generated greater than $2 million, and 130 artists generated over $5 million
  • Greater than 50,000 artists generated $10,000 from Spotify
  • Spotify funds characterize round a 3rd of the $12.5 billion streaming income of the three main music final 12 months
  • In 2021, 28% of artists who reached $10,000 in earnings on Spotify launched music and not using a label


(Picture courtesy: Spotify/Loud and Clear)


As not too long ago reported in Forbes journal, nevertheless, as a substitute of paying artists instantly, Spotify pays rights holders — file labels or distributors — who put their artists’ music on streaming platforms.

Although royalties have elevated considerably since 2017, the precise quantity obtained by artists is way much less as soon as it’s divided between the file label, publishers, and distributors. One report claimed that artists might obtain solely $2,000 of $10,000 constructed from their very own music.

In accordance with the Los Angeles Instances, activists and unbiased artists have protested in opposition to Spotify for the restricted cash artists get for his or her music, which could possibly be modified via legislation or firm coverage.

The protest additionally targeted on Spotify’s resistance and rejection of a 2018 ruling from the Copyright Royalty Board (CRB) that might increase songwriters’ royalties by 44%. Such royalty charges are set by the CRB each 5 years and earlier than 2018, streaming platforms paid simply 10.5% of their music streaming revenues to artists.

Regardless of this, Spotify acknowledged that its royalty funds elevated by $2 billion final 12 months — which was up from $5 billion in 2020.

“I’ve been at Spotify for six years and on this time, questions on royalties have been in constant and excessive demand, and in some ways, we really feel we’ve been too quiet on the subject,” Spotify’s native head of music, Alicia Sbugnera informed The Music Community

“By transparently offering this knowledge, we hope to extend belief with the creator group,” Sbugnera continued. “There are vital questions that should be answered and the positioning will improve transparency by sharing new knowledge and data on the worldwide streaming financial system, but additionally fairly considerably, present a beneficial basis for a constructive dialog at each a neighborhood and world degree,” she stated.

“We all know we now have way more work to do, however we’re assured in what we’ve constructed and the improvements we proceed to ship for artists and their followers,” added Spotify’s CEO, Daniel Ek. “We’ll proceed to empower probably the most gifted artists on the earth to show their ardour right into a occupation, develop the cash paid to rights holders, diversify and broaden the variety of skilled artists succeeding, and propel the music business ahead.”


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