The gargantuan report: Spotify paid out a blended $7+ billion to tune rights holders in 2021. Or no longer it is the supreme sum paid by one retailer to the tune industry in a single yr ever – even at some stage in the tip of the digital download and compact disc generation – and extra than double what the firm paid in 2017 ($3.3 billion).
The file figure pushes Spotify’s total payout since founding to $30 billion.
Last yr was as soon as also the first real via which Spotify had extra than 1,000 artists generate at the least $1 million in earnings via the provider. Of these, 450 generated extra than $2 million and 130 artists exceeded the $5 million label, representing will enhance of 110 percent and 160 percent, respectively, over the closing five years.
What’s extra, Spotify had over 52,000 artists that generated at the least $10,000 closing yr. Bigger than a third reside in worldwide locations out of doorways of the tip 10 tune markets and 28 percent self-distribute on Spotify.
Want extra proof that the industry is much less concentrated than it as soon as was as soon as? All the plot via the CD generation, a quarter of all gross sales went to the tip 50 artists. Last yr on Spotify, supreme 12 percent of earnings got here from the tip 50 artists.
Contain in tips that these figures are real Spotify’s, and don’t myth for earnings generated from rival streaming services and different kinds of distribution. Or no longer it is miles very possible that many artists are making multiples of what’s portrayed in Spotify’s outcomes.
Spotify founder and CEO Daniel Ek acknowledged that it be refined to make it in tune. “I earn that. But the figures we’re sharing expose that Spotify is bettering on the tune industry of the past, and an increasing selection of artists are ready to stand out in the streaming generation,” he added.
Zooming out, we sight that the three vital labels introduced in over $25 billion in earnings in 2021, with $12.5 billion of it coming from streaming by myself.
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