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Spotify Reports $10 Billion in 2024 Royalties, but Songwriter Earnings Remain Low

While Spotify highlights record payouts and growth, financial disparities persist for songwriters and smaller artists in the streaming economy.

  • Spotify announced it paid over $10 billion in royalties to the music industry in 2024, bringing its total payouts since 2006 to nearly $60 billion.
  • The company's 'Loud & Clear' report reveals that 1,500 artists earned over $1 million in royalties from Spotify in 2024, but only a small fraction of artists achieve significant earnings.
  • Songwriters receive a small portion of streaming revenue, with just 14% of Spotify's per-stream income allocated to publishing, and this is further divided among publishers, rights organizations, and multiple co-writers.
  • Spotify's recent bundling of music and audiobooks has drawn criticism, with estimates suggesting it could reduce music royalties by $150 million in 2025.
  • While streaming has revitalized the music industry, critics argue that outdated royalty systems and unequal distribution of earnings leave many creators struggling financially.
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