Here is how a lot Spotify paid out to the music business in 2021
Spotify has revealed that it paid $7billion (£5.3billion) to artists final 12 months.
The information was revealed by way of its Loud And Clear web site, which goals to “enhance transparency” round funds.
The streaming large stated that 56,200 musicians acquired greater than $10,000 (£7,500) from Spotify final 12 months and 130 of those had been paid greater than $5m (£3.8m).
Nevertheless, the figures shared don’t embody the ultimate determine the artist receives as soon as labels and publishers have taken their share, which implies the cash they obtain is usually a lot decrease. Songwriters and session musicians obtain even much less.
The service has come beneath hearth beforehand for its low artist funds, with the likes of David Byrne, producer Tony Visconti and David Crosby all criticising the platform not too long ago.
Visconti described the streaming service as “disgusting” over its low funds to artists. “Spotify is disgusting, the cash they make out of [artists],” he stated. “If you happen to had 12 million streams, you may barely afford lunch for 2 individuals. It’s ridiculous, I don’t know why it’s allowed. Spotify does nothing to help the tradition of music.”
In 2013 Byrne criticised the “pittance” artists are paid whereas David Crosby stated not too long ago: “I don’t like all of the streamers, as a result of they don’t pay us correctly. Their proportion is incorrect. They’re making billions with a ‘b’ they usually’re paying out pennies with a ‘p.’”
The Music Venue Belief additionally hit out not too long ago at Spotify‘s large new sponsorship take care of FC Barcelona, saying the money might have helped tons of of struggling music venues as a substitute.
After earlier rumours, it was confirmed that it had secured a groundbreaking sponsorship deal with the world well-known Spanish membership, which can see Spotify’s brand seem on match and coaching kits. The membership’s stadium has been renamed the Spotify Nou Camp.
In a sequence of tweets responding to the information, the MVT stated: “For the amount of cash Spotify have agreed to spend on TEMPORARILY branding FC Barcelona they might, as a substitute, have secured a PERMANENT future for circa 700 UK Grassroots Music Venues.
“Such an funding might have unleashed £40million every year into grassroots artist expertise improvement, from which Spotify, [Universal, Sony, Warner] and others are the final word monetary beneficiaries.”
MVT added: “Not solely that, however an funding of cash on this manner would generate an inexpensive monetary return, being invested into bricks and mortar and due to this fact remaining an asset. That’s how smart funding works.
“Spotify might have taken this cash, invested it in music infrastructure, saved the asset worth, improved economics for each new/rising artist, and be making a small return on a smart and guarded funding which fully aligns with the most effective pursuits of their firm.”