Spotify has reported a record payout of $10 billion (A$15.4 billion) in royalties to the music industry for 2024, marking the largest annual payment from a single retailer in history.
The streaming giant’s annual ‘Loud & Clear’ report highlights that these payments have increased tenfold over the past decade.
The report also reveals that the 10,000th most-streamed artist received $131,000 (A$202,000) in 2024, up from $34,000 (A$52,000) a decade ago. Additionally, nearly 1,500 artists earned over $1 million (A$1.54 million) in royalties last year.
Despite these figures, many artists continue to criticise Spotify’s compensation model. A report from music catalog buyer Duetti found that Spotify paid out $3 (A$4.60) per 1,000 streams in 2024, while artists received $4.80 (A$7.40) at YouTube, $6.20 (A$9.60) at Apple Music and $8.80 (A$13.60) at Amazon Music. Spotify disputes these findings, stating that music platforms don’t pay by stream.
The debate over streaming royalties persists, with many musicians expressing dissatisfaction over low payouts and the distribution of earnings among a vast number of artists.
Spotify currently has 675 million users. In 2024, the company reported revenues of €15.7 billion (A$25.2 billion), marking its first full-year profit since inception, with a net income of €1.1 billion (A$1.77 billion).
