Spotify released its annual Loud & Clear report on Tuesday, detailing its royalty payments in an effort to counter claims that it underpays artists. The company previously announced it paid $10 billion to the music industry in 2024. According to the new report, artists receiving one in every million streams on Spotify earned over $10,000 on average last year—10 times more than a decade ago.
Despite these figures, many artists argue that Spotify’s payments remain unfair. Grammy-nominated songwriters recently boycotted Spotify’s Songwriter of the Year Grammy party to protest declining royalties. Billboard estimates that a change introduced by Spotify last year could cost songwriters $150 million annually.
A separate report from Duetti found that Spotify pays artists significantly less than competitors. In 2024, it reportedly paid $3.00 per 1,000 streams, compared to Apple Music’s $6.20, Amazon Music’s $8.80, and YouTube’s $4.80. Spotify dismissed these claims, stating that no streaming service pays per stream and that royalties are based on streamshare—meaning an artist earns a percentage of total royalties based on their percentage of total streams.
The Union of Musicians and Allied Workers (UMAW) continues to push for fairer compensation, particularly for independent artists. Last year, lawmakers introduced the Living Wage for Musicians Act, which proposes raising streaming royalties to one cent per stream. UMAW argues that unlike other digital platforms, Spotify does not directly pay recording artists.
Spotify maintains that its payouts are improving. Since 2017, the number of artists generating royalties has tripled. In 2024, nearly 1,500 artists earned over $1 million from Spotify alone, with many recording music in multiple languages. Still, artist concerns about fair compensation remain unresolved.
