The Spotify music app is seen on a telephone in New York Metropolis on June 4, 2024.
Michael M. Santiago | Getty Photographs
Spotify is minting music millionaires.
Almost 1,500 artists generated greater than $1 million in royalties from Spotify in 2024, the corporate mentioned Wednesday in its annual Loud and Clear Report.
Spotify mentioned greater than 80% of the artists in that pool didn’t have a track attain the app’s World Each day High 50 chart. To succeed in that million-dollar threshold, an artist would wish to have round 4 to 5 million month-to-month listeners, or 20 million to 25 million month-to-month streams.
“Spotify has helped stage the enjoying subject for artists at each stage of their careers,” the corporate mentioned within the report. “Success within the streaming period would not require a decade-spanning catalog nor a chart-topping hit.”
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The information comes a couple of month after the corporate reported a fourth-quarter earnings beat that noticed the Swedish music streamer document its first full 12 months of profitability.
Spotify mentioned the higher echelon of royalties, artists who generate greater than $10 million, has soared 600% since 2017, reaching a complete of 70 for 2024.
The corporate mentioned it paid an all-time excessive of $10 billion in royalties to the music trade for 2024, a determine it claimed is “greater than any single retailer has ever paid in a 12 months, and over 10x the contribution of the most important document retailer on the peak of the CD period.”
Spotify doesn’t pay per stream. As an alternative, it calculates a rights holder’s “streamshare,” or the proportion of streams they get out of a selected market.