Spotify has shut down its controversial “Unwrapped” artist royalty calculator after receiving legal threats from the company’s legal team.
The calculator, which had gained attention for highlighting the stark contrast between Spotify’s low artist payouts and high executive compensation, was removed with a message stating that it had been taken down at Spotify’s request.
The calculator allowed users to input their Spotify Wrapped data to see how much artists were paid for their streams, revealing the low royalty rates Spotify offers.
The formula behind the calculator, which multiplies total streams by $0.003 to estimate royalties, remains available for those curious about how little artists earn.
Spotify’s financial success in 2024 has been marked by a surge in stock value, reaching nearly $500 per share. CEO Daniel Ek and other Spotify insiders have sold off substantial amounts of stock, amounting to $1.25 billion in 2024 alone.
This follows significant cost-cutting measures, including a 25% workforce reduction in 2023, and price hikes for Spotify Premium in several markets.
Despite the removal of the calculator, the fight for fairer artist compensation continues, with fans and musicians encouraged to join the United Musicians and Allied Workers (UMAW) movement.
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