There are some extraordinary numbers coming in from the music industry, and it’s all about the power of streaming. Spotify, the leading music streaming platform, announced it paid a staggering $10 billion to the music industry in 2024.
On Tuesday, Spotify‘s VP of the music business, David Kaefer, announced in a blog post noting that in 2014, global recorded music revenues hit a low of $13 billion, with Spotify contributing around $1 billion and having 15 million paying subscribers.
Fast forward to 2024, Spotify paid out $10 billion to the music industry, a new record high, and $1 billion more than $9 billion paid in 2023. David Kaefer also highlighted that Since its founding in 2006, the company has contributed nearly $60 billion to the music industry.
Part of David Kaefer’s blog post reads, and I quote: “In 2014, the music industry reached a low point when global recorded music revenues hit $13 billion.
“Spotify’s annual contribution at the time was around $1 billion, with around 15 million paying subscribers. In 2024, Spotify alone paid out a record $10 billion to the music industry — totaling nearly $60 billion since our founding.
Last year, Spotify reported that it finished the third quarter of 2024 with 252 million subscribers. “Today, there are more than 500 million paying listeners across all music streaming services,” Kaefer added. “A world with 1 billion paying listeners is a realistic goal.”
Despite this huge payout, the company has faced criticism over its payouts to artists, with many who are not at the top of the music food chain frequently complaining about their compensation.
However, Kaefer debunked those complaints in a blog post: “We estimate that, in 2014, around 10,000 artists generated at least $10,000 per year on Spotify,” he wrote. “Today, well over 10,000 artists generate over $100,000 per year from Spotify alone. That’s a beautiful thing.”
“Our goal is to help artists get their work in front of existing and future fans, continue to innovate on their behalf, and deliver it in a way that inspires people to pay for it,” he continued. “Onboarding people to paid streaming is precisely what has increased our payouts—tenfold—over the past decade.”
Spotify’s $10 billion payout to the music industry marks a significant milestone in the streaming era. However, concerns remain about how much money reaches artists after labels and publishers take their share.
As the music industry continues to grow, it will be fascinating to see how streaming services like Spotify adapt and innovate to meet the changing needs of artists, labels, and listeners alike.
