Spotify Pays Record $10 Billion to Music Industry in 2024 Amid Ongoing Royalties Debate
March 2025 – Spotify has paid the music industry a record-breaking $10 billion (£7.7bn) in 2024, marking the highest annual payment by any single retailer in history. However, the debate over artist royalties continues, with many musicians and songwriters arguing they receive only a small share of streaming revenue.
Spotify’s $10 Billion Payout: Where Does the Money Go?
Spotify clarified that it does not pay artists or songwriters directly but instead distributes royalties to rights-holders, including record labels, publishers, and collection societies.
Spotify pays rights-holders, who then pay artists and songwriters based on their agreements, a company spokesperson stated.
The amount an artist earns varies, but a 2021 UK parliamentary inquiry found that performers typically receive only 16% of total royalties. For example, an artist whose music generates £100,000 on Spotify might receive just £16,000 before taxes.
Spotify’s Revenue Growth and Industry Transparency
Spotify’s annual payments have increased, surpassing the $9 billion paid in 2023.
The number of artists earning between $1,000 (£770) and $10 million annually has tripled since 2017.
Spotify’s Loud and Clear report aims to provide transparency on industry payouts.
Artist Boycotts and Streaming Royalties Dispute
Taylor Swift was named Spotify’s top global artist in 2024 with over 26 billion streams, following the release of her album The Tortured Poets Department: The Anthology.
Artists have protested low streaming royalties for years:
- In 2014, Taylor Swift boycotted Spotify, only returning in 2017.
- In 2024, Grammy-nominated songwriters boycotted a Spotify event, demanding fairer streaming payouts.
- Neil Young and Joni Mitchell removed their music from Spotify in 2022 over concerns about Joe Rogan’s podcast, though they returned last year.
70% of Musicians Dissatisfied with Streaming Revenue
A large-scale European survey in 2024 found that 70% of musicians were unhappy with their streaming income. While Spotify and other platforms generate significant revenue for record labels, many artists believe they deserve a larger share.
The Future of Streaming Royalties
As Spotify and other platforms continue growing, the push for fairer artist compensation remains a critical issue in the music industry. Will streaming giants adjust their royalty models, or will artists demand new reforms?
