Spotify has passed the milestone of $10 billion paid out to the music industry in a year.
The streaming giant surpassed the $10bn total in 2024 – the highest single payment by a music retailer. It covers payments across the industry including artists, labels, songwriters and music publishers.
The figure was revealed in a blog post by David Kaefer, VP, music business, Spotify. The total payout to the industry since Spotify launched more than 15 years ago is $60bn.
Kaefer contrasts the payouts in 2024 with the industry low point in 2014, when global recorded music revenues were at $13 billion. Spotify’s annual contribution at the time to the whole industry was around $1 billion, with around 15 million paying subscribers.
In the post, he explains why “Spotify keeps shouting about” its payments to the music industry.
“It's because the system we've built together is working, and where we are now is only the beginning,” he wrote. “Today, there are more than 500 million paying listeners across all music streaming services. A world with one billion paying listeners is a realistic goal we should collectively set.”
He added: “Reaching one billion paid subscribers across all streaming services will be a collaborative effort, requiring innovation, strategic partnerships, and a continued focus on delivering exceptional value to music fans worldwide. It’s a goal we’re confident we can achieve together.”
A world with one billion paying listeners is a realistic goal we should collectively set
David Kaefer
Spotify has just agreed an expanded licensing deal with Universal Music Group.
Kaefer highlighted subscriber retention, the ad-supported tier funneling users to paid plans, and the global reach as key to its success.
“A decade ago, there was a widely held view that you couldn’t monetise certain markets,” he wrote. “But the journey of getting the world to pay for music means making long-term investments. Today, we’re seeing tremendous growth across markets like India, Brazil, Mexico, and Nigeria. These are places where our investments are paying off.”
More than 10,000 artists generate over $100,000 per year from Spotify alone. Reports also suggest that Spotify over-indexes when it comes to revenue for independent labels compared to its average industry share.
“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 explained. “Onboarding people to paid streaming is precisely what has increased our payouts – tenfold – over the past decade.”
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