Spotify announced it paid more than $10bn in royalties to the music industry in 2024, accounting for over 60% of its total revenue of €15.7bn. The company framed the payout as “the largest in music industry history,” likening its impact to Tower Records at the height of the CD era. Despite this, criticism persists from musicians who argue the streaming model does not adequately compensate them.
Spotify reported a net income of €1.1bn for the year and noted that nearly 1,500 artists earned at least $1mn in royalties from the platform, with 80% of them never reaching Spotify’s “Top 50” chart. Sam Duboff, head of marketing and policy for Spotify’s music business, stated, “What we’re seeing empirically is way more artists making it than at any other time in music history.”
Since its launch over a decade ago, Spotify has reshaped the music industry but has also faced criticism from artists who argue that streaming generates only minimal earnings per listen. While backlash has softened over time, skepticism remains. In January, artist Björk called Spotify “probably the worst thing that has happened to musicians.”
Industry analyst Mark Mulligan highlighted the challenges artists face, saying, “For the majority of artists, it doesn’t matter what the economics are—there is just so much music being listened to, it all gets divided into really small bits.”
Spotify distributes most of its subscription revenue to music rights holders, including record labels and publishers, who own the copyrights to its catalog. While streaming revenues have grown significantly, many artists continue to feel they are not receiving a fair share of the profits.
