Spotify paid $9 bn to music industry in 2023

Spotify pays out nearly 70 percent of every dollar it generates from music back to the industry.

By  Storyboard18Feb 12, 2024 10:34 AM
Spotify paid $9 bn to music industry in 2023
Spotify remains by far the world’s largest paid music-streaming service, with the U.S. its biggest territory. (Representative Image: Alexander Shatov via Unsplash)

Spotify paid the music industry some $9 billion in 2023, according to a statement from the streaming giant, which added that the “figure has nearly tripled over the past six years, and represents a big part of the $48 billion-plus Spotify has paid since its founding, as per Variety.

Earlier, the company said it pays out nearly 70 percent of every dollar it generates from music back to the industry, generating its music revenue from two sources: subscription fees from its Premium platform paying subscribers, and fees from advertisings on music on its Free tier. Those rights holders include record labels, publishers, independent distributors, performance rights organizations and collecting societies.

Payments go to rights holders first — which is rarely the artist or songwriter —which then take their fee or percentage and pay the creators their share.

Earlier this week, Spotify announced that in the fourth quarter of 2023 it added 28 million total monthly active users overall, to reach 602 million, and gained 10 million Premium subscribers to stand at 236 million.

Spotify remains by far the world’s largest paid music-streaming service, with the U.S. its biggest territory.

In a comment last March that is likely to be reiterated when the full 2023 details are announced, the company said of its royalty distributions: “These figures represent revenue generation from Spotify alone. When taking into account earnings from other services and recorded revenue streams, these artists likely generated 4x this revenue from recorded music sources overall.”

First Published on Feb 12, 2024 10:34 AM

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