Spotify has reported that in 2024 it paid $10 billion to the music trade – a brand new file. It ought to be famous that this cash didn’t all go to artists, varied companions reminiscent of publishers are additionally within the combine.
The streaming service says that proper now over 10,000 artists make over $100,000 every per yr on Spotify. You’ll be able to see a extra detailed breakdown right here. Some are making large bucks – 1,250 artists remodeled $1 million and 60 remodeled $10 million in a yr from simply Spotify.
For context on how issues have modified, a decade in the past in 2014 the statistic was round 10,000 artists making a minimum of $10,000 a yr from Spotify alone. To this point, Spotify has paid out practically $60 billion to the music trade.
Spotify pays $3.0 per 1,000 streams, primarily based on knowledge from Duetti (a music financing platform), whereas YouTube, Apple Music and Amazon Music pay $4.8, $6.2 and $8.8 per 1,000 streams (numbers for 2024).
Spotify cites retention as one of many key causes for its success – issues like curated playlists and the AI DJ characteristic have listeners coming again. The ad-supported free tier can be essential because it helps onboard customers – 60% of Premium subscribers began on the advert tier. Launching in a number of markets and setting costs match for these markets is touted as one more reason for fulfillment.
Proper now, there are over 500 million paid subscribers in complete for the varied music streaming companies. Spotify itself has 252 million subscribers or so. Nonetheless, the corporate thinks that reaching 1 billion paid subscribers throughout all companies is doable within the close to future.
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