Spotify’s Loud & Clear 2024: Everything You Should Know

If we had to summarize Spotify’s latest Music Economics Report, we could confidently say that things are going exceptionally well in the music streaming industry. At least from the perspective of the world’s largest music streaming service, Spotify. More than that, the report highlights that Spotify benefits artists, including independent ones—an important statement for the platform to make. This is particularly relevant after the recent backlash Spotify experienced from prominent artists and other industry insiders, who claim that the service engages in unfair practices and offers low royalty rates.

Most recently, the prominent rapper Snoop Dogg criticized Spotify’s payment structure. In a podcast interview for Business Untitled, he stated that for accumulating 1 billion streams on Spotify, he received less than $45,000 in royalties. He further pointed out that Spotify’s low royalty payments were the main reason he released his new track exclusively via Tune.fm. Notably, Spotify responded to Snoop Dogg’s claims in a statement to TMZ, saying: “It’s well documented that a billion streams on Spotify generates millions of dollars to rights holders. It’s unfortunate to hear that Spotify’s payments didn’t make it through to Snoop.” Spotify’s response seemed to suggest that Snoop Dogg’s limited royalty payments were not due to the platform’s low royalty rates but rather the terms of his contract with his record label.

Meanwhile, the outstanding Icelandic musician Björk described Spotify as "probably the worst thing that has happened to musicians.” She expressed sympathy for young artists who must depend on streaming platforms like Spotify to build their fanbases, considering herself fortunate to be established and capable of touring, which she believes is where the actual earnings are.

Now, let’s look at the data. In its report, Spotify first highlights that it achieved a record $10 billion payout—the largest in music industry history—making it the highest-paying retailer in the world for another year. The reported payout amount in 2024 resulted from the company’s long-term mission to help the world appreciate music again after the industry reached a low point in 2014, with only $13 billion in music revenue. That year, Spotify’s contribution through payouts was merely $1 billion.

The streaming platform also provides insight into the recipients of its payouts. 2024 was reportedly another record year for songwriters, as Spotify paid $4.5 billion to publishing rights holders—who represent songwriters—over the past two years. The report further highlights the sustained rise of indies. Independent artists and labels supposedly collectively generated $5 billion in royalties from Spotify, which accounts for about half of the total Spotify royalties that year. According to the company, this indicates that its model “uniquely creates more opportunities for more artists to build sustainable careers in music.”

Speaking of artists, the report shows that about 12 million musicians uploaded at least one track to Spotify last year, an increase from 10 million in 2023. This is where things become very interesting. According to Spotify, the steadily growing number of artists using the platform highlights its significance and value to the industry—especially considering that, as the report points out, during the height of the CD era, only a few thousand artists had their records sold in retail stores.

The number of artists earning royalties at every defined threshold, from $1K to $1 million, has at least tripled since 2017. Out of the 12 million artists, 1,450 generated $1 million or more in royalties. Notably, Spotify reports that 80% of artists with $1 million or more did not have a single track that reached Spotify’s Global Daily Top 50 chart in 2024. Moreover, they are not necessarily legacy artists with a massive following, as the majority of these artists didn’t launch their music careers until 2010 or later.

According to Spotify, the message here is clear: “Success in the streaming era doesn’t require a chart-topping hit or a decade-spanning catalog—it’s about building a loyal fanbase that keeps coming back.”

Moving forward, there were 71,200 artists who generated $10,000 or more in royalties and 12,500 artists who earned $100,000 or more. On the other end of the spectrum, there were 210 artists with over $5 million in revenue and 70 artists who earned over $10 million. What’s even more interesting are the percentages that reflect these figures. Considering there were 12 million artists uploading music to Spotify in 2024, this means that less than 0.6% of artists made over $10K, 0.1% generated over $100K, 0.012% made over $1 million, 0.0017% earned over $5 million, and finally, only 0.0000583% earned over $10 million.

Spotify refers to the phenomenon of a steadily decreasing number of artists reaching higher royalty thresholds as the “Paradox of the Modern Music Industry.” This paradox arises from the fact that, although streaming has enabled millions of musicians to share their work globally, the “sheer volume of uploaders means the fraction who find success appears smaller over time.”

Nevertheless, thanks to streaming, more artists than ever before are earning royalties—aka making money from their music on streaming platforms—across every stage of their careers. As Spotify points out, even the artist ranked 100,000th—generating the 100,000th highest royalties—has seen their revenue multiply by over 10 times in the past 10 years, rising from $600 in 2014 to nearly $6,000 in 2024. Simultaneously, the artist ranked 10,000th has experienced their royalties increase four times—from $34K in 2014 to $131K.

Music Business Worldwide (MBW) has also conducted intriguing research to provide more context on Spotify’s recent stats, which reflect the success rate of pursuing a music career. For the study, MBW compared the success rates of Spotify’s upload base to those of another highly competitive industry: professional football (or soccer in the U.S.).

The media outlet estimated that there are about 240 million registered professional football players worldwide. According to FIFA’s 2023 Professional Football Report, there were “128,694 professional male footballers at 3,986 clubs in 135 countries around the world.”

This means that one of those professional football players had a 0.059% chance of becoming an earning professional football player. This is just a fraction of the chance (0.59%) that a musician has of generating $10K on Spotify today.

An essential element to consider is where artists’ royalties originate from, geographically speaking. Are they coming from their home countries or from abroad? Notably, Spotify discovered that in 2024, many artists—both established and emerging—received more money from foreign markets than from their local ones. “This demonstrates the pivotal role that exports play in the success and sustainability of an artist’s career,” stated the company.

Among those who generated over $1K in royalties, nearly one-third received more than 75% of their earnings from listeners outside their home country. Additionally, over half of them have partnered with at least one artist from another country. At the $100K level, more than 80% have collaborated with a musician from abroad.

Last but not least, Spotify’s report highlights the growing success of non-English music. “Music from around the world is thriving like never before—artists everywhere are breaking barriers and reaching new heights.” According to Spotify’s statistics, in 2024, music in eight different languages each earned over $100M in royalties—in 2017, only English and Spanish individually surpassed this threshold.

Moreover, artists who have earned at least $1M in royalties on Spotify have produced music in 17 languages, which is more than double the number from 2017. Additionally, those earning at least $100K on the platform have released music in 50 languages, also reflecting more than a doubling since 2017.