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Spotify Faces Criticism Despite Record $10 Billion Royalty Payout in 2024

The streaming giant highlights increased artist earnings, but concerns over low per-stream rates and songwriter royalties persist.

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A screen displays the logo of Spotify on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., December 4, 2023. REUTERS/Brendan McDermid/File Photo
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Overview

  • Spotify's 2024 Loud & Clear report reveals a record $10 billion in royalty payouts, marking a tenfold increase since 2014.
  • Nearly 1,500 artists earned over $1 million in royalties last year, with many achieving this milestone without chart-topping hits.
  • Critics highlight Spotify's low per-stream payouts compared to competitors like Apple Music, Amazon Music, and YouTube, which pay significantly higher rates.
  • Songwriters and industry groups claim Spotify's bundled subscription tiers reduced royalties, costing U.S. writers an estimated $150 million in 2024 alone.
  • Advocacy groups and lawmakers are pushing for reforms, including the proposed Living Wage for Musicians Act, to ensure fair compensation for artists.