Monday, May 16, 2022

Spotify’s royalty report for 2021 paints a rosy picture of the music streaming industry

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Spotify continues its efforts to provide some transparency to musicians unhappy with streaming speeds† The company updated his “Loud & Clear” website today, with a breakdown of some 2021 stats for how artists, publishers, and rights holders actually monetize Spotify streams.

As you might expect, Spotify chooses to mention positive improvements over 2020 here. Spotify paid out more than $7 billion to artists, labels and the other moving parts of the music industry last year, up from $5 billion last year. More than 16,500 artist catalogs earned at least $50,000 in royalties in 2021, compared to 13,400 in 2020, and more than 1,000 artists made $1 million through Spotify streaming for the first time (versus 870 artists who reached that high watermark last year). Meanwhile, more than 52,600 artists earned at least $10,000 from Spotify streams last year, compared to 42,500 in 2020.

And just like last year, there’s still a calculator where artists (and fans) can enter their monthly number of listeners or song streams to see how their stats compare to the rest of Spotify.

Of course, Spotify seems to specifically pick songs that showcase its contributions to the music industry in the best light – nothing on the Loud & Clear website portrays Spotify’s royalty rates as anything but a net positive for the industry, something musicians clearly don’t. not to see eye to eye (if a recent protest in LA shows). And while Spotify’s songs are great at highlighting the number of artists that to be success on the platform, the company has been remarkably quiet when it comes to putting those big wins in the context of the (presumably) much larger number of artists that are not pulling thousands of dollars out of the streamer every year.

Overall growth is encouraging, but as Spotify gains popularity, the relative numbers for “success” are shifting. And since Spotify splits revenue based on how well a song or artist does compared to the rest of the platform, it doesn’t just matter how popular the artist catalog is — it’s also how popular it is compared to everything else. on Spotify. The company cites as an example that more than 230,000 songs broke 1 million streams by 2021, something that would have been an exceptional feat in the early days of the service when it had far fewer listeners.

Spotify’s greater transparency is a good thing, especially as the music industry continues to hold streaming platforms in increasing control over how they pay artists. But clearly there is still a lot of work to be done to translate the success of streaming music into monetary success for most of the artists on the platform.

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