Spotify Wants Everyone To Know How Much It Gives the Music Industry
On Tuesday, Spotify put out a press statement saying that its collective payments to the music industry for 2024 totaled $10 billion.

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On Tuesday, Spotify put out a press statement saying that its collective payments to the music industry for 2024 totaled $10 billion. According to Spotify, that’s one sixth of the amount it’s paid to the industry since it was founded in 2006. It’s part of an effort on Spotify’s part to look like the music industry’s best friend, but just what does $10 billion get you these days?
If I Had $10 Billion (I’d Buy Your Love)
In many musicians’ and consumers’ minds, Spotify and its fellow streamers have taken on the mantle of “The Man” in the industry. Music streaming services, like TV streaming, have gone up in price, but they’re still a pretty startling value proposition when you think of the amount of music you get for a subscription.
Tatiana Cirisano, senior music industry analyst at MIDiA Research, told The Daily Upside that Spotify’s $10 billion figure doesn’t just tell you how much Spotify is paying, but also just how dependent the music industry is on the streaming giant:
- “Labels counted just under $22 billion in global music streaming revenue in 2023, which represented more than 60% of their total revenue that year,” said Cirisano, citing MIDiA’s industry data. She added that Spotify is, unsurprisingly, the top contributor to that number.
- However, that doesn’t mean Spotify is necessarily in a one-horse race. In 2022, YouTube Music said it had paid the music industry $6 billion, and Global Head of Music Lyor Cohen said publicly he wants YouTube Music to become the top revenue source for the sector by 2025.
Fanning the Flames: Spotify’s announcement on Tuesday that it’s shelling out more dough to the music industry than ever before comes on the heels of a new licensing agreement with Universal Music Group, the world’s biggest music label. Both parties touted the deal as ushering in the “next era of streaming innovation.” So far, the details are scarce. One thing the new deal may lead to is more stratified subscription tiers, including a “superfan” tier which could give subscribers early access to perks like new music, Q&As with artists, and better audio.