Spotify Responds to Artist Criticism by Highlighting £7.7 Billion Paid in Royalties

Spotify’s Record Payments to Artists

Spotify asserts that it disbursed $10 billion (£7.7 billion) in 2024, marking the largest single-year payment in the music industry.

The streaming platform reveals that 1,500 artists received more than $1 million in royalties, reflecting a tenfold increase in their annual compensation since 2024, which totaled $1 billion overall.

In a report examining royalty disbursements, Spotify labeled its 2024 payments as “the largest in the history of the music industry,” drawing a comparison to Tower Records during the peak of the CD era in the early 2000s.

Artist Backlash and Criticism

However, this announcement comes amid ongoing criticism from artists and industry leaders concerning Spotify’s streaming earnings. Earlier this year, nominees for the “Songwriter of the Year” at the Grammy Awards opted to boycott the Spotify event.

Artists such as Jesse Alexander, Amy Allen, Jesse Joe Dillon, and Ray, all nominated for “Songwriter of the Year,” announced they would skip the streaming platform’s celebratory event and refrain from performing there.

Spotify’s Royalty Payments Explained

Spotify has addressed these concerns, stating to BBC News that it does not pay artists or songwriters directly. Instead, it compensates rights holders, which typically include recording labels, music publishers, and performance rights organizations. These entities then distribute payments to the artists based on their individual agreements.

Additionally, in the “Loud and Clear Report,” Spotify indicated that it surpassed $9 billion (£7 billion) in payments, an increase from the previous year. The report also highlighted that the number of artists receiving annual payments ranging from $1,000 (£770) to $10 million has tripled since 2017.

Earlier in the year, Björk expressed her viewpoint, declaring that Spotify “is probably the worst thing to happen to musicians.” This isn’t the first instance of her criticism; she previously opted not to release her album “Vulnicura” on the platform due to principles of “respect.”

“It seems crazy,” she remarked at that time. “To work on something for two or three years, and then simply say: ‘Oh, here it is for free.’ This is not just about money; it’s about respect for the craft and the effort invested.”

In other Spotify-related news, the streaming giant successfully won a lawsuit concerning the unification strategy that led to reduced royalty payments for songwriters after it introduced a new audiobook package within its premium subscription last year.

In recent months, Spotify faced considerable backlash following reports of a late breakfast held a day before Donald Trump’s inauguration, along with donations of $150,000 (£122,000) to the official ceremony.