Here’s how much Spotify paid the music industry in 2021
Spotify has revealed it paid $7bn (£5.3bn) to artists last year.
The news was posted via its Loud And Clear website, which aims to “increase transparency” around payments.
The streaming giant said 56,200 musicians received more than $10,000 (£7,500) from Spotify last year and 130 of them received more than $5m (£3.8m). sterling).
However, the figures shared do not include the final figure the artist receives once labels and publishers have taken their cut, meaning the money they receive is often much less. Songwriters and session musicians receive even less.
The service has already been criticized for its low payouts to artists, with the likes of David Byrne, producer Tony Visconti and David Crosby all criticizing the platform recently.
Visconti described the streaming service as “disgusting” for its low payouts to artists. “Spotify is disgusting, the money they make with it [artists],” he said. “If you had 12 million streams, you could barely afford lunch for two. That’s ridiculous, I don’t know why it’s allowed. Spotify doesn’t do anything to support the culture music.
In 2013, Byrne criticized that artists are being paid “poorly”, while David Crosby recently said, “I don’t like any of the streamers because they don’t pay us properly. Their proportion is wrong. They make billions with a ‘b’ and they pay pennies with a ‘p’.
The Music Venue Trust also recently launched a huge new sponsorship deal between Spotify and FC Barcelona, claiming the money could have helped hundreds of struggling venues.
After earlier rumours, it has been confirmed that he has agreed a groundbreaking sponsorship deal with the world-famous Spanish club, which will see Spotify’s logo appear on match and training kits. The club’s stadium was renamed Spotify Nou Camp.
In a series of tweets responding to the news, MVT said: “For the amount of money Spotify agreed to spend to TEMPORARILY brand FC Barcelona, they could have instead secured a PERMANENT future for around 700 basic British music venues.
“Such an investment could have freed up £40m a year in talent development for local artists, from which Spotify, [Universal, Sony, Warner] and others are the ultimate financial beneficiaries.
MVT added, “Not only that, but investing money in this way would yield a reasonable financial return, being invested in bricks and mortar and therefore remaining an asset. That’s how smart investing works.
“Spotify could have taken that money, invested it in music infrastructure, retained the value of the asset, improved the economics of each new/emerging artist, and made a small return on a reasonable and protected investment that completely aligns with the best interests of their business.”