On Tuesday, SPOTIFY published an annual Loud & Clear report to explain the information on the loyalty of the music streaming service. SPOTIFY has paid $ 10 billion in the music industry earlier this year, but the new report provides a deeper number of payments to announce the report that the company does not compensate for the work correctly.
For the first time, an artist who received one of the millions of streams from SPOTIFY produced an average of $ 10,000 in 2024, 10 times that the same streamshare would have been created 10 years ago.
SPOTIFY promotes the amount paid to artists and composers, but many people demand fair rewards for streaming services. A few weeks ago, many composers of the Great Candidates boycotted SPOTIFY’s composer Grammy Party due to a decrease in royalties of music streaming services. Billboard estimates that the artists will lose about $ 150 million over 12 months due to the change introduced by Spotify last year.
In addition, according to Duetti’s new report (dismissed from the previous statement of Techcrunch), Apple Music is still twice as much as the artist. SPOTIFY has paid $ 3.0 for $ 3.0 artists per 1,000 streams, other platforms, such as $ 3.0, Amazon Music, Apple Music and YouTube, paid $ 8.8, $ 6.2 and $ 4.8 per 1,000 stream in 2024.
After the report was released, Spotify told Techcrunch, “These arguments are ridiculous, no basis, and streaming services per stream do not pay streaming services per stream.”
Spotify’s new report attempts to dismiss these reports and concerns. The report explains the company’s payment model in detail to explain how artists and publishers earn money on the platform.
In the report, “The main streaming services are all paid in the same way. Based on the stream share. “The misunderstanding of the ‘fare per stream’ is still widespread. Streaming services are not paid based on the ratio per fixed stream. As if the listener listens to the song. ”
Musicians and Allied Workers (UMAW) are calling for spotify to fairly compensate for the artists, especially independent and small artists who are struggling to earn livelihoods. Parliamentary Women Rashida Tlaib and House of Representatives Jamaal Bowman have partnered with Umaw last year to introduce living wages for musicians to explain the aim of increasing streaming royalties for musicians to 1 cents per stream.
A spokesman for UMAW said in a statement in TechCrunch, “You can easily calculate that SPOTIFY pays directly to the recording artist.
“There is no direct payment for recording artists through Spotify. This is because the company argues that unlike other digital platforms such as satellite radio, internet broadcasting or ‘non -interactive’ streaming, musicians argue that there is no requirement for existing regulations or requirements for direct payment. This must be clearly changed. The UMAW supports living wages to help musicians close this loophole, and pays musicians to make streaming to musicians who create content of Spotify and other platforms. ”
SPOTIFY’s report is that payments are getting better despite the industry’s concerns.
According to this report, the number of artists producing royalties has tripled since 2017.
Over the past decade, Spotify’s 10,000th artist has seen almost four times their royalties. This has increased almost four times from $ 34,000 to $ 131,000, while the artist of the 100,000th is more than 10 times.
The company also said last year that it produced more than $ 1 million royalties at SPOTIFY. Spotify means that 80%of this artist did not reach the Spotify Global Daily Top 50 chart in 2024, which means that many are not home names.
SPOTIFY also shared that artists who produced at least $ 100,000 as royalties recorded music in more than 50 languages in 2024, and artists who produced at least millions of dollars in SPOTIFY produced music recorded in 17 languages.
