The streaming behemoth Spotify claimed on Tuesday in its most recent "Loud and Clear" report that it paid out $9 billion in streaming royalties last year. In response to complaints over its lack of openness, Spotify first released its fourth annual report in 2021. It highlighted historic accomplishments, including the largest yearly contribution made by any merchant to the music business.
"This is all the information we have about the amount of money being given out and the number of artists who are succeeding at different levels," says Charlie Hellman, vice president and head of Spotify's worldwide music product. "Therefore, all individuals can obtain the data and stay somewhat informed about the current status of the sector."
Based on the statistics, 1,250 artists made over $1 million in royalties from recordings and publications in 2023; 11,600 made over $100,000, and 66,000 made over $10,000. These figures have nearly quadrupled since 2017.
According to the survey, almost 50% of the 66,000 musicians originated from nations where English is not the official language, indicating a growingly international music scene.
And according to Hellman, "indie" artists—those who release their music independently and on independent labels as well as those who self-distribute—accounted for $4.5 billion, or half of all royalties that Spotify paid out.
"Millions of people have uploaded music at least once, but that doesn't really indicate if they are musicians or if this is more of a pastime for them," claims Hellman.
Artists who "at least put up an album's worth of music once they seem to be trying to build a fan base" are highlighted by Spotify. According to his estimation, the network has "roughly 225,000 professionally aspiring artists."
They enjoy a little amount of popularity. They may, for example, have performances posted on Spotify or other websites," he explains.
In an effort to reduce expenses while concentrating on turning a profit, Spotify said in December that it was laying off 17% of its worldwide personnel. This is the music streaming service's third round of layoffs since 2023.
Spotify declared last month that it will stop paying for songs that receive fewer than 1,000 plays annually, beginning in 2024.
