Spotify Distributed $10 Billion In Music Royalties In 2024: Details

In 2024, streaming platform Spotify Technology SA SPOT disbursed an unprecedented $10 billion to the music industry in royalties, surpassing any previous yearly payment.

This represents a tenfold growth compared to the last ten years. To date, Spotify has distributed approximately $60 billion since its launch.

The company also reached a record in music publishing payouts, exceeding $4.5 billion over the last two years.

According to Spotify, the increase in streaming payouts is fostering more diversity and inclusivity in the music industry.

In its annual music economics report, Spotify said artists are succeeding across borders, with more languages and diverse voices breaking into the mainstream.

In 2024, the artists who generated at least $100,000 in royalties were recording music in over 50 languages, while the artists who garnered at least $1 million on Spotify recorded music in 17 different languages, both more than double the languages at those thresholds in 2017.

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Furthermore, the number of female artists earning over $1 million each year has grown fourfold since 2017. This growth has provided artists from nations such as Canada, South Korea, Sweden, and Argentina with greater international exposure, particularly among women in music.

Over 50% of artists earning at least $1,000 annually from Spotify are seeing the majority of their royalties from international listeners.

Notably, one-third of these artists received more than 75% of their earnings from outside their home countries, highlighting the role that global streaming plays in driving artist success.

More than 80% of artists generating at least $100,000 annually are collaborating with musicians from different nations.

Since 2017, the number of artists earning between $1,000 and $10 million each year has increased threefold. Interestingly, almost 25% of the 12,500 artists generating over $100,000 in 2024 had not yet begun their professional music careers five years prior.

Spotify is set to launch a new premium subscription service called “Music Pro” at $18 per month, targeting music enthusiasts with enhanced features.

It is to be noted that the streaming giant had recently achieved its first full year of profitability following strategic cost-cutting measures.

Price Action: SPOT shares closed higher by 3.92% at $508.44 on Tuesday.

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