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The growth was enough for Fortune to proclaim, in 2019, that “Spotify saved the music industry.”īut the economics of Spotify have kept at least one group from feeling salvation: artists. With streaming and Spotify soaring in popularity, the record industry has seen revenues increase every year since 2015, to $12.2B in 2020. Exact details for these agreements vary and are rarely publicly revealed, but Spotify has said major labels get ~50%-52% of total revenues while publishers get ~15%-20%. That royalty structure is further divided between recording rights (held by labels and artists) and publishing rights (held by music publishers and songwriters). In 2020, this share of revenues was ~$5.7B.
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By 2014, that figure had sunk to just $7.3B, per the Recording Industry Association of America. The latter option was becoming more and more popular - and it was putting the recording industry in a bind.Īnnual recorded music revenues had fallen from an inflation-adjusted peak of $22.7B in 1999 to $15.1B in 2006.
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When serial entrepreneur Daniel Ek co-founded Spotify in 2006, people had 3 main options for listening to recorded music:
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How does Spotify function as a business? Why are artists so poorly compensated on the platform? And will Spotify survive if it continues to alienate them? The deal that made Spotify a juggernaut
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Please try again!ĭelivered weekdays plus a bonus Sunday feature. “So they take this money that’s built from streaming and they pay this guy $100m, but they pay us (a fraction) of a penny.” “Spotify is built on the back of music streaming,” said singer India.Arie in an Instagram post showing multiple clips of Rogan saying the n-word on his podcast. Yet artists - from major stars to indie musicians - feel they aren’t getting their fair share of the pie.
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Spotify just announced it pulled in ~$11B in revenue in 2021. The debacle added fire to a long-simmering dispute over the platform’s inequitable economics for creators. When famed rocker Neil Young demanded his music be removed from Spotify over Joe Rogan’s publicizing of covid misinformation, he was joined in his protest by dozens of other musicians.
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Spotify, the world’s leading music streaming platform, has been heralded as the savior of the recording industry.īut it sure doesn’t feel that way right now. Sadie Dupuis advocates for musicians as an organizing committee member for the Union of Musicians and Allied Workers. “I don’t know any artists who feel their career has been made better by Spotify,” said Dupuis, who has accumulated more than 15m Spotify streams as solo act Sad13 and as a singer and guitarist in Speedy Ortiz. She recalls making more money from lesser-known music sites like Bandcamp in a month than she does from Spotify in a year. But while the coveted spots on the playlists may have led to greater exposure, they did not lead to greater riches.
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For more information on downloading Spotify for Artists to your phone, check out our guide: how to install APK files.If you listen to Spotify’s music recommendations, there’s a good chance you’ve come across songs by Sadie Dupuis.Īs Dupuis told The Hustle, she’s been on the cover of 4 Spotify-curated playlists at the same time.