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Spotify announced Wednesday that the company now accounts for about a third of the music industry’s recorded music revenues, further cementing its position as the world’s largest music streaming service.
The company highlighted that it has made the largest annual payout to the music industry ever by any retailer, with sales doubling since 2017.
“Today, Spotify accounts for about 30% of recorded music revenues,” says Charlie Hellman, head of music. “Last year, our payouts grew by more than 10%, while other industry revenue sources grew by almost 4%, making Spotify the leading driver of industry revenue growth through 2025.”
He noted that Spotify has paid out more than $11 billion to the music industry, the largest annual payment ever from any retailer, bringing the company’s total payouts to nearly $70 billion.
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The Spotify website controlled on a smartphone in the Brooklyn borough of New York, USA, on Friday, July 22, 2022. (Gabby Jones/Bloomberg via Getty Images/Getty Images)
The platform’s historic milestone has allowed more artists to earn six figures annually from Spotify alone. Independent artists and labels specifically accounted for half of all royalties.
In the announcement, Hellman also listed new focus areas and products to expect, including efforts to increase discoverability in a saturated market, combat the exploitation of artificial intelligence against artists, and drive ticket sales for live performances.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PLACE | SPOTIFY TECHNOLOGY SA | 511.11 | -0.49 |
-0.10% |
“Our first priority is to help more new music and new artists cut through the noise and form real connections with fans,” said Hellman.
“With more than 100,000 new songs released every day rivaling the entire history of recorded music, emerging artists face an unprecedented challenge in building the early fan base that any successful career needs,” he added.
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Spotify’s Charlie Hellman speaks on stage during Spotify Investor Day at Spring Studios on March 15, 2018 in New York City. (Ilya S. Savenok/Getty Images for Spotify/Getty Images)
To protect artists’ identities amid a wave of AI-generated content, Spotify said it plans to update its verification and song credit systems.
“AI is being exploited by bad actors to flood streaming services with poor quality to game the system and try to divert royalties from authentic artists,” Hellman said. “So we will be making changes to the systems for artist verification, song credits and protecting artist identities.”
A musician and sound engineer mixing a new album in a boutique recording studio. (iStock / iStock)
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In addition, the music platform is launching SongDNA to show fans who worked on a song; rolling out new tools to convert listeners into ticket buyers; and introduce human music editors to balance algorithmic playlist recommendations.
