Spotify paid the music industry almost $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.”
While more information was not immediately accessible, the business said it would be included in its annual Loud & Clear report, which would be updated in the coming weeks.
Last March, the company stated that it returns roughly 70% of its music revenue to the industry. Its music revenue comes from two sources: subscription fees from paying members on its Premium platform and fees from music advertising on its free tier. Record labels, publishers, independent distributors, performance rights groups, and collecting societies are among those who own the rights.
It is vital to highlight that payments are made first to rights holders, who are rarely the artist or songwriter, who then deduct their fee or percentage and distribute it to the creators.
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Earlier this week, Spotify revealed that in the fourth quarter of 2023, it attracted 28 million total monthly active users, bringing the total to 602 million, and 10 million Premium subscribers to 236 million.
Spotify remains by far the world’s largest paid music-streaming service, with the United States being its largest market.
In a March statement, which is likely to be repeated when the full 2023 data are published, the business said of its royalty distributions: “These figures represent revenue generation from Spotify alone.” When revenues from other services and recorded revenue streams are factored in, these artists’ total revenue from recorded music sources is projected to be four times higher.”
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