Spotify pays artists $10bn amid gaps

In 2024, Spotify distributed $10 billion in royalties to artists worldwide, an increase from the $1 billion paid out a decade ago in 2014, according to the platform’s newly released Loud & Clear report. However, the report also reveals that the platform’s payout structure sees that many creators such as songwriters, producers, and mid-level talent receive only a fraction of this revenue due to deductions by intermediaries such as labels, distributors, and management.

The streaming giant revealed that nearly 1,500 artists earned over $1 million each last year alone. The $10 billion was fueled by a global listener base and streaming as the primary mode of music consumption. Superstars at the top of the earnings ladder—like the nearly 1,500 million-dollar earners—reap significant rewards, but the report highlights ongoing debates about equity.

For every stream, revenue is split among multiple stakeholders, leaving songwriters and lesser-known artists with smaller shares after intermediaries take their cut. This disparity has reignited calls for a more transparent and creator-friendly payout model, even as Spotify touts its economic contributions.

Read also: Nigerian music consumption soars 146% in 2024 – Spotify

Nigeria’s piece of the pie

Spotify paid out over N58 billion (approximately $36 million) to Nigerian artists in 2024, more than doubling the figure from 2023 and quintupling the 2022 total.

This surge aligns with a 49 percent growth in Nigerian music exports over the past three years, driven by the global rise of Afrobeats. Jocelyne Muhutu-Remy, Managing Director for Spotify Africa, revealed during the Loud & Clear Breakfast event in Lagos that the number of Nigerian artists earning at least 10 million naira doubled in 2024, signaling a growing middle class of talent benefiting from streaming.

Yet, Nigeria’s N58 billion is a small slice of the $10 billion global pie, reflecting both the country’s rising prominence and the vast scale of Spotify’s operations. The platform reported that new Nigerian artists were discovered 1 billion times worldwide, with 250 million playlists featuring Nigerian talent—metrics that highlight Afrobeats’ role in driving streams from markets like France, the Netherlands, and the looming giants of the UK and US.

Bridging the gaps

While Nigeria’s artists are riding the Afrobeats wave, challenges mirror those seen globally. Muhutu-Remy noted that metadata issues, weak rights management, and limited financial literacy among artists and their teams hinder the ecosystem from fully capitalising on streaming revenue. “Even though the ecosystem is growing, artists might not get their full share,” she said.