Comment by cm2012
4 days ago
Spotify paid out ten billion dollars to artists in 2024. This is not small potatoes - total 2024 music industry merchandise sales was around $14b.
Youtube also paid out literally 50x more to creators in 2024 than Patreon had total subscriptions on the platform.
These big platform payouts matter a lot.
> This is not small potatoes
Unless you're a small potato. Approximately 0% of what I pay for spotify goes to the artists I actually listen to. Fucking Taylor Swift and the Beatles estate don't need my money.
As a reasonably known but not super popular bluegrass artist, I agree: please steal my music instead of paying Spotify for it.
Hell, Weird Al himself only made $12 from Spotify views in 2023.
And Joe Rogan...
To rights owners, not to artists. It's not a trivial difference. Ask Taylor Swift.
Some quick Googling shows 1 million streams pays approx $2000.
You'd need 40,000,000 streams to earn $80,000.
be aware that payout rates change based on tiers and a bunch of other factors. So, it would likely take more than 40 million streams to earn $80k.
I believe Weird Al posted his streaming revenue a few years ago. He had something like 80 million streams and said he earned about $12. https://www.billboard.com/music/pop/weird-al-yankovic-wrappe...
There is a reason people like T Swift and whatnot tour constantly, it's how they make money. Weird Al is known for his amazing live shows, there's a reason for it: they make more money.
Ad supported streams in Spotify are counted in a separate pool, and only get paid out of the ad revenue pool.
Artists can of course complain that "they're selling our music for cheap!", especially in the ad pool. But what's worth remembering is that when it comes to setting optimal price points, Spotify's interest is almost perfectly aligned with the artists. And Spotify has a hell of a lot more data than artists (not to mention financial sense, which you probably didn't become an artist if you had a lot of).
5 replies →
> people like T Swift and whatnot tour constantly
Maybe not the best comparison to anything. Swift is known for being an even better busiensswoman than artist and obsessed with having control.
She screwed her record company for profits, not the other way around. Not many people have done that. She's likely making money on both ends of the stick.
The Pudding had a nice article explaining how streaming revenue is distributed: https://pudding.cool/2022/06/streaming/
When he says "so if I'm doing the math right that means I earned $12" I interpret that as him exaggerating for effect. It's definitely not him citing the pay slip.
"$2 or more per thousand streams, split across rightsholders" seems like an accurate estimate.
That seems reasonable?
Assume an artist (either directly or through a rights holder) makes 1/3 income from streaming, 1/3 from merch and physical albums, and 1/3 from live events.
40m streams per year would be 800k per week. 200k fans worldwide playing 4 times per week on average could get you there. Thats like a decent sized but not enormous youtube channel.
200k fans worldwide would also support the ticket sales and merchandise sales aspects.
You only need 5000 fans to buy your CD/album/w.e at $15 to make 80k
2 replies →
But you only need to record your song once and get money forever. Nobody pays me per function invocation in production, that would be very nice
99% of that 10 billion went to a handful of artists. Actually, I'd wager nearly half of it went to labels and other middlemen, but that's beside the point. The vast majority of money in the music industry never trickles down, ever.
edit: I looked it up, 70% of spotify's payouts go directly to labels, not artists. So...that $10 bil is nothing.
This is by design and it's the same broken system that metallica defended in the 90s/00s because it benefits large artists while fucking over the other 99%.
We keep repeating the same script using the same busted short term logic.
Labels suck but when we're considering the merits of Spotify it's not their fault and artists can put music on the service without an abusive label.