Spotify announced on Tuesday that it paid a staggering $10 billion to the music industry in 2024, bringing its total payouts since inception to nearly $60 billion, per techcrunch.com. The streaming platform said it is committed to supporting artistes and other industry stakeholders, including publishers, as it continues to dominate the global music streaming market.
The announcement comes amid growing scrutiny over how streaming platforms compensate artistes. While Spotify highlighted that over 10,000 artistes now earn more than $100,000 annually from streaming revenues—a significant increase from the 10,000 artistes earning $10,000 annually in 2014—critics argue that per-stream payouts remain disproportionately low.
A recent report from music financing platform Duetti revealed that Spotify pays just $3.0 per 1,000 streams, lagging behind competitors like Amazon Music ($8.8), Apple Music ($6.2) and YouTube ($4.8).
David Kaefer, Spotify’s VP of Music Business, defended the company’s model in a blog post, stating, “The system we’ve built together is working, and where we are now is only the beginning.” He pointed to the growing number of paying listeners worldwide, which surpassed 500 million in 2024, and expressed optimism about reaching 1 billion paying listeners in the future.
However, Spotify’s Discover Mode, which allows artists to promote their music through algorithms in exchange for reduced payouts, has sparked controversy. Critics argue that this system forces artists to rely on higher streaming volumes to maintain earnings, exacerbating the challenges of an increasingly crowded market. According to Luminate’s yearly music report, an average of 99,000 tracks were uploaded to streaming platforms daily in 2024, with global streams hitting 4.8 trillion—a 14% year-on-year increase.
Spotify dismissed Duetti’s findings as “ridiculous and unfounded,” with a spokesperson stating, “No streaming service pays per stream because that approach would incentivise low engagement. We want users to engage more so they pay more.” The company also disputed claims that its average payout has declined despite recent price hikes for its premium plans.
