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Spotify paid out $9 billion in music royalties in 2023, with $4.5 billion going to independent artists. That huge pool of money is divvied up amongst hundreds of thousands of artists — some wealthy enough to live without royalty checks while many others need streaming to help keep their lights on.
The number of artists who made at least $10,000 in royalties from Spotify rose 16% to 66,000, according to the company’s latest Loud & Clear report released Tuesday (Mar. 19). That was twice the growth rate in artists earning at least $10,000 as the 8% uptick seen in 2022 when that number rose to 57,000.
The number of artists who reached other thresholds also increased at a higher clip in 2023 than in 2022. Last year, the number of artists who made $100,000 from Spotify in 2023 rose 15% to 11,600, compared to 10,100 the prior year, when the number was up 6%. And there were 1,250 artists who generated over $1 million from Spotify in 2023, an 18% increase from 1,060 in 2022 when the $1 million club grew by just 2%.
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The company’s fourth annual Loud & Clear report provides an update on the company’s goal of allowing 1 million creators the opportunity to make a living from their art, a statement that goes back to CEO Daniel Ek at the company’s 2017 investor day presentation. How much an artist requires to pay the bills will vary by country, but it’s safe to say Spotify isn’t allowing 1 million artists to quit their day jobs and be working musicians.
Nevertheless, the number of artists who made what could be called a substantial amount of royalties on the platform continues to grow. The number of artists who made $10,000 from Spotify (66,000) last year was 2.8 times the 23,400 who reached that level in 2017. Compared to 2017, the number of artists who reached the $100,000 threshold in 2023 (11,600) was 2.7 times higher; and the number of artists who earned $1 million (4,300) last year was also 2.7 times higher. Over that period, Spotify’s annual revenue grew 3.2 times, rising from 4.1 billion euros ($4.6 billion) to 13.2 billion euros ($14.3 billion), according to the company’s financial statements.
By Spotify’s own estimate, the universe of working musicians is much larger than the 66,000 artists who earned $10,000 last year. The company says there are 225,000 emerging or professional recording artists globally. Separately, 235,000 artists have released at least 10 songs in their careers, a group that averages at least 10,000 monthly listeners.
Loud & Clear makes a point of highlighting how independent artists can make a living from streaming royalties. Last year, a quarter of the 66,000 artists in the $10,000 club were self-distributed through do-it-yourself platforms such as DistroKid and TuneCore. Unlike artists signed to record labels, self-distributed artists can pocket the entirety of their streaming royalties minus any distribution fees. Artists signed to labels may make more overall than independent artists, but they earn a fraction of the total receipts and must repay advances and marketing and promotion expenses.
Another Loud & Clear point of emphasis is that streaming is benefitting artists around the world. Indeed, the global nature of streaming platforms means music can easily travel from any corner of the globe to a mature streaming market where a high proportion of paid subscribers provides attractive royalties compared to ad-supported platforms. Of the 66,000 artists who generated at least $10,000 in Spotify royalties in 2023, more than half are from countries where English is not the first language. That’s not surprising given that Spotify is available in 184 countries and territories and has a major presence in large markets — such as India, Mexico, Brazil, Spain and France — with strong local, non-English music scenes.
To get a sense of which artists might be in Spotify’s $1 million club, Billboard examined a list of Luminate’s top 1,000 U.S. artists ranked by audio on-demand streaming. The list includes some young artists who have found success in the streaming era — such as Jelly Roll (No. 66), The Neighbourhood (No. 102) and PinkPantheress (No. 144) — and rely on streaming royalties more than more established artists with greater touring success.
Many of the top streaming artists are older musicians who earn far more from touring than streaming royalties: Fleetwood Mac (No. 54), George Strait (No. 97), AC/DC (No. 110), Elton John (No. 125), P!nk (No. 128), Billy Joel (No. 169), Journey (No. 172), Motley Crue (No. 395) and Garth Brooks (No. 489), among many others.
The top 1,000 list also includes bands that broke up long ago or haven’t released new music in decades: the Beatles (No. 49), Queen (No. 87), Nirvana (No. 112), Creedence Clearwater Revival (No. 134), Led Zeppelin (No. 151), Abba (No. 318), Bee Gees (No. 328), The Smiths (No. 341) and the Grateful Dead (No. 444). Those music royalties are undoubtedly welcomed, but these artists are certainly secure financially without them.
Other top-streaming artists are deceased: Juice WRLD (No. 15), 2Pac (No. 89), Frank Sinatra (No. 109), Elvis Presley (No. 146), Notorious B.I.G. (No. 150), Bob Marley (No. 167), Johnny Cash (No. 245), Dean Martin (No. 336), Prince (No. 362), Jimmy Buffet (No. 425), Tom Petty (No. 428), David Bowie (No. 441) and John Denver (No. 470).
Some artists don’t even pocket their Spotify royalties because they’ve sold their rights to investors. Katy Perry (No. 82) sold her recorded music catalog to Litmus Capital. Kenny Chesney (No. 157) sold a majority stake in his recorded music catalog to Hipgnosis Song Management. Jason Aldean (No. 50) sold a portion of his recorded music catalog to Spirit Music Group. Primary Wave acquired a 50% stake in Whitney Houston’s master recording revenue. The list of contemporary artists who sold their publishing rights is long; the list also includes Future (No. 12), Bruno Mars (No. 57), Imagine Dragons (No. 58) and Metro Boomin (No. 132).
Artists in the $1 million club are outliers, however. Anyone fortunate enough to be earning $1 million a year from Spotify already makes a good living from touring, merchandise, sponsorships and other areas. The point of Loud & Clear is to highlight the financial opportunities Spotify provides to those artists the report calls the “most dependent on streaming as part of their livelihood.” For that middle class of artists, streaming pays much better than it used to. While only a small fraction of 1 million artists can say they make a living from Spotify, the number rises every year.
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Source: Spotify / Spotify Music Videos Feature
Spotify is finally getting a feature it should have had: the ability to instantly watch music videos.
Today, Spotify announced that its music video feature is rolling out in “beta” and will feature a “limited catalog” in 11 markets.
As for the supported artists, Spotify users can see videos from Ed Sheeran, Doja Cat, Ice Spice, Aluna, and Asake. Per Techcrunch, the company’s global head of consumer experience, Sten Garmark, says that users can expect Spotify’s entire music video catalog to include “thousands” of songs.
Per Spotify:
“So many times in my own experience and for countless others, music videos play a key role in hooking you: taking you from being a listener to leaning in and becoming a fan,” says Charlie Hellman, Vice President and Head of Music Product at Spotify. “They’re an important part of so many artists’ tool kits, and it’s a natural fit for them to live in the same place that more than half a billion people choose to listen to music.”
Users can access the music videos by hitting the “Switch to Video” icon above the song title for the songs supported by the feature.
When you hit the icon, the track will restart, and the video will appear in the center of the screen. You can flip your Android or iOS device to switch the aspect ratio to full screen.
The feature will also be available on desktop and the Spotify smart TV app, and it is currently live in the UK, Germany, Italy, the Netherlands, Poland, Sweden, Brazil, Colombia, the Philippines, Indonesia, and Kenya.
Genmark says those markets specifically chosen were “based on a number of criteria, including market size and the availability of local content support.”
Neil Young is bringing his music back to Spotify more than two years after requesting its removal from the platform, the singer-songwriter announced Tuesday (March 12).
In January 2022, Young published an open letter asking Spotify to pull down his catalog, citing what he called the spread of vaccine misinformation on the wildly popular Joe Rogan Experience podcast, which was then hosted exclusively on the streaming platform. Several other artists, including Joni Mitchell, Indie.Arie and Young’s Crosby, Stills, Nash & Young bandmates David Crosby, Stephen Stills and Graham Nash, subsequently followed suit, though CSN/CSN&Y and Arie’s music have since been restored to the service; Mitchell’s catalog remains absent.
In a new post on his Neil Young Archives website, the legendary artist said the end of Spotify’s exclusive deal with Rogan led to his decision to restore his music to the service. “My decision comes as music services Apple and Amazon have started serving the same disinformation podcast features I had opposed at Spotify,” the post reads – a clear reference to the Joe Rogan Experience, though Young never mentions it by name.
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“I cannot just leave Apple and Amazon, like I did Spotify, because my music would have very little streaming outlet to music lovers at all, so I have returned to Spotify, in sincere hopes that Spotify sound quality will improve and people will be able to hear and feel all the music as we made it,” Young continued, before shouting out Qobuz and Tidal, where his catalog also lives, as “High res” streaming options.
Young concludes his post by stating his hope that Spotify “will turn to Hi Res as the answer and serve all the music to everyone. Spotify, you can do it! Really be #1 in all ways. You have the music and listeners!!!! Start with a limited Hi res tier and build from there!”
Spotify announced plans to roll out a HiFi tier in February 2021, though those plans have yet to come to fruition. In June 2023, Bloomberg reported the streaming giant would finally launch the product later in the year, but the company declined comment when reached by Billboard – and the calendar rolled over without the tier materializing.
Young has long been an advocate of high-resolution audio, even launching his own (now-defunct) high-res audio download platform, Pono, in 2015 before shuttering it two years later.
In September, Billboard estimated that the absence of Young’s catalog on Spotify had cost him roughly $300,000 in lost recorded music and publishing royalties to that point.
At press time, Young’s music catalog had yet to be restored to Spotify, which did not immediately respond to Billboard‘s request for comment.
A dozen years after Spotify launched in the United States and 18 years into the existence of YouTube, streaming music is so ingrained in Americans’ behavior that 91% of the U.S. internet population used a music streaming service in the last year, according to the 22nd edition of MusicWatch’s U.S. Annual Music Study.
According to the report, released Monday (Mar. 11), the number of U.S. subscribers to music services such as Spotify, Apple Music and Amazon Music Unlimited reached 109 million in 2023 — meaning over half of U.S. internet users aged 13 and over now pay for a music streaming service. That number increases to 136 million if SiriusXM and Amazon Prime Music are included. SiriusXM is predominantly a satellite radio service that also has an internet product. Amazon Prime provides music streaming to customers who sign up for Prime for free shipping and other perks.
In 2012, just 56% of Americans used any type of music streaming service. That number jumped to 69% in 2014 and surpassed the 80% mark in 2018. But 2023 was the first time music streamers surpassed 90% of the internet population. MusicWatch counts music streaming on ad-supported audio platforms such as Spotify and Pandora, paid services such as Apple Music, and video services such as YouTube. For the sake of this survey, short-form video platforms such as TikTok and Instagram Reels are not considered to be music streaming platforms.
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The number of people who stream music has grown even faster than the proportion of the population that does so. In 2012, the U.S. internet population stood at roughly 125 million. By 2023, it had grown by nearly 60 million to 193 million. The way people access the internet has changed over that period. In the early days of the internet, people mostly had a dial-up home internet connection, but over time, home internet access improved while mobile internet usage exploded.
The prevalence of mobile internet has played an important role in music streaming adoption. Not long ago, MusicWatch principal Russ Crupnick noticed a change in the reasons why people paid for subscription services. Early subscription adopters were heavy users who found value in features such as playlists, connecting to their social networks and recommendations. Then, about five years ago, Crupnick found new subscribers’ reasons for paying a monthly fee started to change.
More recent adopters of paid music streaming services care more about access, not features, says Crupnick. As more people had smart speakers, bluetooth headphones and in-dash entertainment systems in their cars, it was important for services to offer a seamless listening experience as they moved from place to place. “It just works,” he says of subscribers’ rationale for paying. “It works everywhere that I want and works on all of my devices.”
Per-capita spending on recorded music increased 7% from 2022 as music subscriptions, CDs and vinyl all saw double-digit gains. That improvement came from both organic growth and price inflation, says Crupnick. Music subscription services pushed through a string of price increases after keeping their prices mostly untouched for many years — Apple Music in Oct. 2022, Spotify in July, YouTube Music also in July and Amazon Music in August.
Ariana Grande‘s just-released album, Eternal Sunshine, is already setting records. On Saturday (March 9), Spotify announced through social media that the project is the company’s most-streamed album in a single day in 2024 so far.
The 30-year-old Wicked star unveiled Eternal Sunshine, her seventh album, on Friday (March 8), marking her first full-length since 2020’s Grammy-nominated Positions, which spent two weeks at No. 1 on the Billboard 200 albums chart.
Grande entered the Eternal Sunshine era back in January with the release of lead single “Yes, And?” That Max Martin-producer dancefloor-ready banger used house music to kiss off her haters and shimmy to the top of the Billboard Hot 100. Five weeks later, Grande’s latest Hot 100 chart-topper — her eighth overall and sixth to debut in the pole position — received a remix from none other than Mariah Carey.
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She has earned eight No. 1 singles on the Hot 100, including “Thank U, Next” (seven weeks), “Save Your Tears” (with The Weeknd, two weeks) and the eight-week leader “7 Rings.” On the Billboard 200, the multi-hyphenate has sent five titles to the chart’s summit, including 2013’s Yours Truly, 2014’s My Everything, 2018’s Sweetener and 2020’s Positions.
In celebration of Eternal Sunshine‘s release, Grande will perform on Saturday Night Live this weekend as the Josh Brolin-hosted episode’s musical guest. Along with the album, she dropped the music video for her next single “We Can’t Be Friends (Wait For Your Love)” on Friday.
Grande is no stranger to receiving accolades from Spotify. Earlier this year, she reflected on the stories behind all 14 of her hits that earned a billion streams on Spotify — the most of any female artist in history.
“thank you so much @spotify for this incredible honor and celebration !” the Victorious album captioned a video on Instagram, in which she shared stories about such hits as “Bang Bang,” “Rain On Me” and “Save Your Tears.” “filming this little episode was such a sweet little commemoration and gratitude meltdown, if you will !!!!! i wasn’t expecting to get emotional but it really, truly hit me!”
See Spotify’s Eternal Sunshine announcement on Instagram below.
Spotify will pass-on the music streaming tax imposed by the French government by hiking its subscription prices in that market.
As previously reported, France’s National Assembly last December approved a so-called “CNM Tax” on streaming brands, the funds from which would finance the national public body, The Centre National de la Musique (CNM), which was created in 2020 and is already partly financed by the live music industry.The tax was predictably decried by the streaming services. For platforms that earn more than 20 million euros ($22 million) in annual turnover — including Spotify, Apple Music and Deezer — a new tax charge of 1.2% would be applied on all streaming revenue generated in France in addition to their existing tax duties. Social media platforms including Facebook and TikTok, which license and feature music, would also be subject to the taxes.
Spotify, the global market leader, said it couldn’t absorb the Macron government’s new costs and would offset them one way or another.After announcing back in December that the streaming giant would pull its financial support to a number of local music festivals, Spotify today (March 7) confirms a price increase for its premium packages – applied only to subscribers in France. Reps from Spotify claim the tax doesn’t add up. This new fee “will generate approximately 15 million euros, when the CNM’s administrative budget (office fees, personnel, capital expenditure, media monitoring or professional training etc.) sits at 20.2 million euros,” reads an open statement issued today.
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“Our concern is that possibly less than half of its overall 146.9 million euros budget will find its way toward effectively aiding music.”Spotify, the message continues, “has proudly championed French artists for the past 15 years; we certainly didn’t wait for the CNM to be created in 2020 to help artists find success in France, and outside of France; to help promote French repertoire and grow the royalty pool for French rights holders. Spotify’s payments have totaled close to 225 million euros in 2022 alone (or about 1/4th of all the French recorded music industry revenues for that year). That is up more than 200% percent since 2017.”The price increase isn’t laid out, though Spotify promises to update its French subscribers over the coming weeks with full details.
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“To put it bluntly, all French users will see their subscription plan fee go up,” the message confirms. “French users will now pay the highest subscriptions across the European Union.”
Read Spotify’s open-letter below.
Spotify Premium subscribers in France will soon experience a price increase due to additional costs on music streaming services imposed by the government, as part of the “CNM Tax.” While we worked very hard to encourage the government to avoid adding this tax, unfortunately they decided to move forward.
Perhaps you’ve never heard of the CNM – it’s a public body that commissions studies on the French music industry, and provides financial aid to record labels and the live industry. At the end of 2023, as part of its 2024 budget, the French government decided that digital music streaming services will now have to pay a new tax in order to finance it. Our worry, on top of what would be equivalent to a double payment on our part, has been that this tax will not go directly to artists, nor will it have a tangible output visible to fans; instead, it will simply come at the expense of listeners, and create an additional middleman – the CNM. In fact, this tax will generate approximately 15 million euros, when the CNM’s administrative budget (office fees, personnel, capital expenditure, media monitoring or professional training etc.) sits at 20.2 million euros. Our concern is that possibly less than half of its overall 146.9 million euros budget will find its way toward effectively aiding music.
Spotify has proudly championed French artists for the past 15 years; we certainly didn’t wait for the CNM to be created in 2020 to help artists find success in France, and outside of France; to help promote French repertoire and grow the royalty pool for French rights holders. Spotify’s payments have totaled close to 225 million euros in 2022 alone (or about 1/4th of all the French recorded music industry revenues for that year). That is up more than 200% percent since 2017.
Yet, with the creation of this new tax, Spotify would be required to give approximately two-thirds of every euro it generates to music to rights holders and the French government. Of course, this is a massive amount and does not allow for a sustainable business. As we have long said, we simply can’t absorb any additional taxes. Even after making the difficult decision to reduce our artist marketing budget and support of French music festivals – which is an essential vehicle for Spotify to continue to drive hundreds of millions of euros to the music industry – it still continues to impede our ability to operate in France. Accordingly, over the coming weeks and months, we’ll need to make changes to our price plan in France.
To put it bluntly, all French users will see their subscription plan fee go up. French users will now pay the highest subscriptions across the European Union.
Spotify is increasing prices in France in order to offset these new costs. We’ll come back to our French subscribers over the coming weeks with the full details on the upcoming price increase.
For more information on the global streaming economy, the players, and the process, visit our website Loud & Clear.
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Spotify paid out nearly $4.5 billion to independent rights holders in 2023, or roughly half of the more than $9 billion the streaming service paid to all labels and publishers last year, the company announced Tuesday (Feb. 27). The $4.5 billion total marks a new record for the indie sector (which includes DIY artists) and […]
Cumulus Media led all music stocks this week by gaining 20.2% to $4.70 after the radio broadcaster announced it had employed a “poison pill” to ward off a Singapore-based investor.
In January, Renew Group Private Ltd increased its stake in Cumulus Media from 5.2% to 10.01%. To protect the best interests of all Cumulus shareholders, the board of directors explained, the company chose to enact a “limited-duration shareholder rights plan” that would dilute Renew Group’s equity if it exceeds a 15% stake. In justifying the move, Cumulus said Renew Group has investments in other media companies, including a direct competitor to Cumulus.
Music stocks were broadly up this week as the Billboard Global Music Index improved 1.5% to a new high of 1,684.49. The index is up 9.8% in the young year and has gained 38.4% over the past 52 weeks. Of the index’s 20 stocks, 13 finished the week in positive territory, six lost value and one was unchanged.
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Stock markets around the world reached new highs this week, too. In the United States, the Dow reached a new closing high of 5,088.80 on Friday (Feb. 23) after surpassing 5,100 for the first time earlier in the day. The Nasdaq composite also reached a new high on Friday and finished the week up 1.4% to 15,996.82. The S&P 500 improved 1.7% to a new closing high of 5,088.80. Japan’s Nikkei 225 index reached an all-time high on Thursday (Feb. 22), finally surpassing the previous record reached in 1989 when the Japanese economy was the world’s envy.
Music streamer LiveOne was the second-best performing music stock of the week after its shares jumped 17.9% to $1.71, bringing its year-to-date improvement to 22.1%. With no other music stocks posting double-digit gains, the next best performance came from Chinese music streamer Cloud Music. Its shares rose 4.1% to 90.95 HKD ($11.63) as Chinese stocks finished the week strong after hitting a five-year low in February. In an attempt to bolster the market, Chinese regulators this week established trading restrictions such as limits on short-selling and institutional investors.
Spotify shares gained another 4.0% this week to close at $256.10, bringing its year-to-date gain to an impressive 36.3% (which has added approximately $13.4 billion to its market capitalization). On Wednesday (Feb. 21), the company announced the creation of a new music advisory agency, AUX, that will connect brands with artists. The inaugural campaign matches Coca-Cola with DJ-producer Peggy Gou in what the company called “a long-term partnership that will span live concerts and events, social media content, a branded playlist, and on-platform promotional support.”
Live Nation shares finished the week up 2.2% to $95.32 and rose 2% on Friday following the company’s encouraging fourth-quarter earnings release. Morgan Stanley raised its price target from $110 to $120 in part because Live Nation said it expects double-digit growth in adjusted operating income in 2024 thanks to a busy touring schedule in its high-margin amphitheaters. “This is going to be a great year,” president/CEO Michael Rapino said during Thursday’s earnings call.
Radio broadcaster iHeartMedia was the index’s biggest loser of the week after dropping 12.5% to $2.32. The company will announce its results for the fourth quarter of 2023 on Feb. 29.