Streaming service, Spotify, has said a total of $10 billion was paid as royalties to various artistes on the platform in 2024.
The payout has been described as the largest in a single year in the music industry. The company in its report said 1,500 artists earned over $1 million in royalties, representing a significant increase in its yearly payouts.
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Notwithstanding the data, some artists had pointed fingers at the company over streaming income. Some artistes, including British Singer Raye, who were nominated for Songwriter of the Year at the Grammy Awards, reportedly decided to boycott Spotify‘s party for the ceremony, and refused to perform at the event.
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Despite the criticism, Spotify said it pays royalties to rights holders, and not to individual artistes.
“Spotify does not pay artists or songwriters directly. We pay rights-holders, these are typically record labels, music publishers, collection societies. These rights-holders then pay artists and songwriters based on their individual agreements,” a spokesperson for the company was quoted.
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Last month, Tems officially joined African female artistes to surpass 1 billion streams on the music streaming app. She was listed for her contribution to American rap artist Future’s Wait For U, which also featured Canadian superstar Drake.
The track, which sampled Tems’ 2020 song Higher, was featured on Future’s album I Never Liked You and debuted at No. 1 on the Billboard Hot 100. It later won Best Melodic Rap Performance at the 2023 Grammy Awards, marking Tems’ first Grammy win.
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Spotify has been hailed for its role in the global reach of pop music by African artists. Last year the company said it made said over €1 billion in profit after it undertook some structural adjustments in its operations.
The development was attributed partly to staff layoffs and other “brand cutting efforts.” Subscribers on the platform were reported to have reached 615 million as the company continued to introduce innovative products. Spotify had also demonetized all songs with less than 1,000 streams, in line with a new policy.
