Spotify achieved a new milestone in 2024 by paying $10 billion to the music industry, benefiting not only platform artists but also company partners like publishers.
Spotify spent $10 billion on the music sector.
Spotify disclosed that over 10,000 artists on the platform are now making at least $100,000 a year, with 1,250 artists earning over $1 million and 60 artists earning over $10 million annually.
About ten years ago, in 2014, there were around 10,000 artists making a minimum of $10,000 annually. Currently, the streaming platform has paid close to $60 billion to the music sector.
Spotify pays $3 for 1,000 streams, while YouTube, Apple Music, and Amazon Music pay $4.8, $6.2, and $8 per 1,000 streams respectively, as reported by Duetti, a music financing platform.
Retention is highlighted as a key factor in the service’s success, along with curated playlists. The free ad-supported option is another crucial element, with 60% of Premium users initially opting for this plan.
Over 500 million users are currently subscribed to different music streaming services, with Spotify having 252 million subscribers and aiming to hit 1 billion soon.
Paraphrased: Origin