Spotify Once Had A Reputation For Underpaying Music Artists. It Hopes To Change That Perception

Back successful nan early 2010s, nan euphony manufacture was astatine a debased point.

Piracy was rampant. Compact disc income were connected a dependable decline. And nan then-new audio streaming services, for illustration Spotify, were taking hits from creators for paying debased royalty rates.

Today, Spotify has grown into nan world’s astir celebrated audio streaming subscription work and nan highest-paying retailer globally — paying the euphony manufacture complete $11 cardinal past year. The Swedish institution said in a caller post that nan payouts aren’t strictly going to ultra-popular artists, but that “roughly half of royalties were generated by independent artists and labels.”

“A decade ago, a batch of nan questions were really fair. Spotify had to beryllium capable to beryllium retired if it could standard arsenic an economical engine. People didn’t cognize if streaming would standard arsenic a model,” said Sam Duboff, Spotify’s world caput of trading and argumentation of euphony business.

Duboff said Spotify’s payouts aren’t “plateauing — we’re still increasing that royalty excavation connected Spotify much than 10% per year.” He credits nan streaming platform’s maturation to “incentivizing group to beryllium consenting to salary for euphony again” by providing personalized experiences and world accessibility.

The company, founded successful 2006, serves much than 751 cardinal users, including 290 cardinal subscribers, successful 184 markets.

“The mean Spotify premium subscriber listens to 200 artists each month, and astir half of those artists are discovered for nan first time,” Duboff said. “When you build an acquisition wherever group tin research and autumn successful emotion pinch music, it inspires them to upgrade to premium and support paying.”

The level offers a wide assortment of playlists, curated by editors for illustration nan up-and-comer-driven Fresh Finds aliases rap’s latest, RapCaviar. There are besides individual playlists generated for users, specified arsenic nan play round-up Discover Weekly and nan regular operation of tunes called nan “daylist.”

The streamer considers itself nan first measurement toward “an enduring career” for today’s indie artists. Last year, much than a 3rd of artists making $10,000 connected nan level successful royalties started by self-releasing their euphony done independent distributors.

“Streaming, fundamentally, is astir opportunity and access. It’s artists from each complete nan world releasing euphony nan measurement they want to and reaching a world assemblage from Day One,” Duboff said. He adds that erstwhile fans person a choice, they will observe caller genres and euphony cultures that whitethorn person different languished successful obscurity.

In 2025, astir 14,000 artists earned $100,000 from Spotify alone. The streamer’s information besides show that past twelvemonth nan 100,000th highest-earning creator made $7,300 successful Spotify royalties, whereas successful 2015, an creator successful that aforesaid spot earned astir $350.

The company, pinch a ample beingness successful L.A.’s Arts District, emphasizes that nan roster of artists connected its level who gain importantly much money — good into nan millions — is nary longer constricted to nan few. A decade ago, Spotify’s apical creator made astir $10 cardinal successful royalties. Today, nan platform’s apical 80 artists make complete $10 cardinal annually. Some of 2025’s apical artists globally were Bad Bunny, Taylor Swift and nan Weeknd.

Spotify claims those who aren’t family names tin gain six figures, pinch much than 1,500 artists earning $1 cardinal past year.

For immoderate musicians, nan outlook is not arsenic clear

Damon Krukowski, a musician and nan legislative head for United Musicians & Allied Workers, argues that Spotify’s money isn’t needfully going to artists — it’s going to their labels.

Those without labels usually upload euphony done distributors specified arsenic DistroKid and CD Baby. These platforms complaint a mini interest aliases commission. For example, DistroKid’s lowest-level subscription is $24.99 a year, and nan tract states users “keep 100% of each your earnings.”

”There are zero payments going straight to signaling artists from Spotify,” Krukowski asserts. “Recording artists merit nonstop costs from nan streaming platforms for usage of our work.”

The defense group, which has mobilized much than 70,000 musicians and euphony workers, precocious helped draught nan Living Wage for Musicians Act to reside nan streaming industry. The bill, introduced to nan U.S. House of Representatives past fall, calls for a caller streaming royalty that would straight salary artists a minimum of 1 penny per stream.

In the Q&A conception of Spotify’s Loud and Clear website, nan streamer confirms that it “doesn’t salary artists aliases songwriters directly. We salary authorities holders selected by nan creator aliases songwriter, whether that’s a grounds label, publisher, independent distributor, capacity authorities organization, aliases collecting society.”

Instead of pursuing a penny-per-stream model, Spotify pays based connected nan artist’s stock of full streams, called a “streamshare.”

“Streaming doesn’t activity for illustration buying songs. Fans salary for unlimited access, not per way they perceive to,” wrote nan institution online. “So a ‘per stream’ complaint isn’t really really anyone gets paid — not connected Spotify, aliases connected immoderate awesome streaming service.”