Since its launch in 2008, Spotify has been in the spotlight over its approach to artist royalties – averaging out at $.004 per stream – and its overhaul of the music industry structure, yet despite these concerns, the platform is ubiquitous, accounting for around a third of global streams.
Spotify recently published its ‘Loud & Clear’ report, described as a ‘transparent look at how the streaming economy continues to support artists and fuel the music industry’s explosive growth’.
909originals looks at five claims made in the report:
1. Spotify has paid more to artists than any company in the history of the music industry
In 2024, Spotify paid $10 billion to the music industry, which the company says is ‘more than any company in the history of the music industry has ever contributed in one year’. While strictly true, given that hundreds of thousands of artists on the platform are battling for a share of that revenue (the majority of which make small change), this claim is somewhat loaded.
According to Spotify, streaming contributed more than $28 billion in revenue to the music industry in 2024, double that of ten years ago.
2. Spotify encourages cultural and linguistic diversity in music
As the report notes, artists who earned at least $100,000 last year on Spotify recorded music in over 50 languages. Among those earning $1 million or more, 17 different languages were represented, more than double that of 2017.
Spotify has certainly expanded the musical horizons of its users – it’s now easier than ever to immerse oneself in forró from Brazil or singelli from Tanzania – but fairer compensation for these artists could enable them to thrive.
3. Spotify enables global fandom to fuel artist success
As of last year, more than 50% of artists who generated at least $1,000 in royalties earned the majority of their income from listeners outside their home countries, Spotify noted, while one-third of these artists saw over 75% of their royalties come from abroad, ‘showing the power of global streaming in driving artist income’, it noted.
Read more: Hip hop the top genre on Spotify, while radio continues to go ‘pop’, study finds
4. Spotify has ‘levelled the playing field’
The report claims that Spotify has helped ‘level the playing field for artists at every stage of their careers’, noting that since 2017, the number of artists earning between $1,000 and $10 million annually has tripled. In addition, close to 25% of the 12,500 artists earning over $100,000 in 2024 were not professional musicians five years ago.
The democratisation of music availability has certainly helped raise awareness about artists around the world, but without the support to help them prosper, claims that the playing field has been ‘levelled’ are open to criticism.
5. Fans will shape the future of music
Spotify suggests that the future of music will be shaped by fans, with ‘new opportunities for innovation, collaboration, and creative expression’ emerging across streaming platforms.
Maybe I’m old fashioned – well, I’m certainly old – but I’d rather not rely on Spotify’s algorithms to define my musical taste. It’s certainly a valuable tool, and has the potential to broaden any user’s musical knowledge, but I would question the level to which actual human ‘fans’ play in dictating its musical selections.
You can find Spotify’s full Loud & Clear report here.
Check out the top tracks that the 909originals team has recently discovered through Musosoup here. To feature your music on 909originals, click here. 🙂
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