Spotify reported unprecedented accomplishments and transparency in its fourth annual "Loud and Clear" report, revealing that it paid out $9 billion in streaming royalties last year
Spotify's Vice President and Global Head of Music Product, Charlie Hellman, stressed the report's relevance in revealing the music industry's present status. The data highlighted notable trends, such as the increasing success of artists worldwide, per AP News.
According to the report, 1,250 artists earned over $1 million each in recording and publishing royalties in 2023, demonstrating substantial growth compared to previous years. Additionally, 11,600 artists generated over $100,000, and 66,000 artists earned over $10,000, nearly tripling since 2017.
"Today, streaming has enabled more room for more artists to find success, demonstrating real change across the music business," Spotify noted in the report. "The overwhelming majority of artists on Spotify wouldn't have had music on the shelf in the CD era."
(Photo : Michael M. Santiago/Getty Images)
The Spotify company logo is diaplayed as traders work on the floor of the New York Stock Exchange (NYSE) during morning trading on February 01, 2023 in New York City.
Non-English, Independent Music Artists on The Rise
Spotify's worldwide appeal was highlighted by the fact that over half of the 66,000 music artists who made over $10,000 were from non-English-speaking nations. Indie artists-self-distributed and independent label acts-accounted for $4.5 billion, half of Spotify's royalty payments.
Hellman explained Spotify's focus on artists who demonstrate a commitment to building a fan base by releasing substantial music content. He estimated that approximately 225,000 professional aspiring artists are active on the platform.
Spotify faced cost reduction measures and labor reductions in 2023 despite these successes. Spotify intends to stop paying music with less than 1,000 yearly streams in 2024 to improve its royalty structure. Hellman clarified that this decision aimed to redirect royalties to artists with more significant streaming activity.
In a related update, Spotify recently announced the expansion of its collaborative music streaming feature, 'Jam,' to desktop platforms, enabling users to enjoy synchronized music sessions with friends directly from their computers. Originally introduced exclusively for iOS and Android devices, Jam now extends its reach to PCs, enhancing the shared music experience.
Read Also: What Is an AI Token? Crypto Coins Surge as Investors Ride the AI Boom
Jam function brings people together by letting them listen to music on any device. The new update enables desktop users to seamlessly join Jam sessions with friends who are using Spotify on iOS, Android, or PCs. This eliminates the need for users to rely solely on their mobile apps to engage in collaborative music streaming.
During jam sessions, participants can stream music in real time, ensuring that everyone hears the same tracks simultaneously. Users have the flexibility to add songs to the queue and skip tracks they dislike. Additionally, the individual who initiates the jam has the option to control these functions, providing a customizable experience in the platform
Neil Young Returns to Spotify
After two years away from Spotify, Neil Young returned despite denouncing vaccine disinformation on Joe Rogan podcast. Young people boycotted Spotify due to disinformation and poor sound quality, as earlier reported by TechTimes.
Young announced his return to Spotify in a blog post, citing the platform's acceptance of misinformation podcast features he disliked, though he did not mentioned the Joe Rogan Experience.
Despite his worries, Neil Young recognized that removing his music from all major streaming sites like Spotify would substantially restrict its exposure to music fans, and impact his music royalties.
Related Article: TikTok Uncertainty: Advertisers Eyeing Meta's Reels and YouTube's Shorts If US Senate Approves Ban
