Spotify has paid out a total of nearly $60 billion since its inception. Spotify paid out a record $10 billion to the music industry in 2024
In 2024, Spotify made history by paying out a record $10 billion to the music industry, bringing its total payouts since launch to nearly $60 billion.
The platform now boasts over 500 million paying users across all its music streaming services.
Spotify attributes its growth in subscriptions—becoming the most popular and highest-paying service—to its focus on retention through personalized experiences, curated content, and innovative features like the AI DJ, Daylist, and the highly anticipated annual Spotify Wrapped.
The availability of ad-supported streams has also played a key role in attracting users who later convert to paying subscribers. According to Spotify, 60% of Premium users once started as free-tier listeners.
The company points to its strategy of offering localized pricing in various markets as a significant factor in its growth. This market segmentation, combined with a focus on local engagement, has driven impressive expansion in countries like India, Brazil, Mexico, and Nigeria.
A further sign of Spotify’s success is reflected in its payouts, which have surged dramatically since 2014. In 2024, over 10,000 artists earned more than $100,000 per year exclusively from Spotify.
For Nigeria, the growth has been equally remarkable, as Spotify has provided a platform for artists to directly reach global audiences, opening up a virtually endless revenue stream.
In 2023, the company paid out a total of 23 billion naira to Nigerian artists.
Music is experiencing unprecedented growth. In 2024, the global value of music copyright was estimated at an impressive $45.5 billion, surpassing the movie industry for the first time.
David Kaefer, Spotify’s Vice President for Music Business, shared that the company plans to continue innovating in order to deliver the best experiences for both fans and creators.
“Our goal is to help artists reach both current and future fans, continue innovating for them, and present their work in a way that inspires people to pay for it. Onboarding users to paid streaming has been a key factor in the tenfold increase in our payouts over the past decade,” Kaefer explained.
For the Nigerian music industry, the future looks bright. With one of the world’s youngest populations, Nigeria is poised to see growing local streaming numbers and stronger revenue retention within the ecosystem.
