Spotify announced it paid out $10 billion to the music industry in 2024, surpassing last year’s record by $1 billion.
Since its founding in 2006, the streaming giant has now distributed nearly $60 billion to rights-holders, including record labels, publishers, and independent distributors.
Spotify’s Role in Music Industry Growth
Spotify’s VP of music business, David Kaefer, highlighted how streaming rescued the music industry from a 15-year decline caused by illegal downloads.
In 2014, global recorded music revenues hit a low of $13 billion, with Spotify contributing just $1 billion at the time.
Today, streaming services have over 500 million paying listeners, with Spotify aiming for 1 billion subscribers in the future.
Why Spotify Claims to Be the Highest-Paying Streaming Service
- Personalization & Retention – Features like AI DJ, editorial curation, and Wrapped keep users engaged.
- Free Tier Converts to Paid – 60% of Premium subscribers started on the ad-supported free version.
- Global Expansion – Growth in markets like India, Brazil, Mexico, and Nigeria is fueling revenue.
How Much Do Artists Make?
- In 2014, 10,000 artists earned at least $10,000 per year from Spotify.
- By 2024, well over 10,000 artists now generate over $100,000 annually from Spotify alone.
- Spotify estimates that total earnings from all streaming services could be four times these figures.
Recent Universal Music Deal & Future Reports
Spotify recently renegotiated its deal with Universal Music, improving royalty payments for artists under its audiobooks-music bundle. More financial details will be shared in Spotify’s annual Loud & Clear report in the coming weeks.
The Bottom Line
Spotify’s $10 billion payout in 2024 reinforces its dominance in the streaming industry. However, concerns remain about how much money actually reaches artists after labels and publishers take their share.