Spotify accounts for 30% of the global music industry’s revenue growth by 2025
See what’s clicking on FoxBusiness.com.
Spotify announced on Wednesday that the company now makes almost a third of the revenue recorded in the music industry, further cementing its position as the world’s largest music streaming service.
The company claimed it made the music industry’s biggest single-year payout of any retailer ever, and that revenue has doubled since 2017.
“Today, Spotify makes about 30% of revenue from recorded music,” said Head of Music Charlie Hellman. “Last year, our fees grew by more than 10%, while other industry revenue sources grew by close to 4%, making Spotify the main driver of industry revenue growth in 2025.”
He noted that Spotify has paid more than $11 billion to the music industry, which is the largest annual payment for any retailer, bringing the company’s payments to nearly $70 billion.
JOE JONAS’ FORMER HOME HITS THE MARKET FOR ALMOST $4M
The Spotify website on a smartphone in Brooklyn, New York, US, on Friday, July 22, 2022. (Gabby Jones/Bloomberg via Getty Images/Getty Images)
The milestone of the platform has allowed many artists to earn six figures a year on Spotify alone. Independent artists and labels are specifically accounted for a portion of all profits.
In the announcement, Hellman also listed new areas of focus and products to look forward to, including efforts to increase availability within the full market, combat the exploitation of artificial intelligence against artists and generate live concert ticket sales.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| SPOT | SPOTIFY TECHNOLOGY SA | 511.60 | -1.29 |
-0.25% |
“Our priority is to help new music and new artists break through the noise and create a real connection with fans,” Hellman said.
“With more than 100,000 new songs being released every day, rivaling the entire history of recorded music, budding artists face an unprecedented challenge in building the first fans that a successful career requires,” he added.
THE WEEKND’S NYC PENTHOUSE, WHERE BELLA HADID HAD LIVED, HAS HIT THE MARKET FOR $35M
Spotify’s Charlie Hellman speaks on stage during Spotify’s Investor Day at Spring Studios on March 15, 2018, in New York City. (Ilya S. Savenok/Getty Images for Spotify/Getty Images)
In order to protect artist ownership amid the proliferation of AI-generated content, Spotify said it plans to review its verification and song credit systems.
“AI is being exploited by bad actors to flood streaming services with low quality to play the show and try to divert payments from real artists,” Hellman said. “That’s why we’re going to introduce changes in the process of verifying artists, song credits, and protecting the identity of artists.”
A singer and sound engineer mixing a new album inside the store’s recording studio. (iStock / Stock)
GET FOX BUSINESS ON THE GO BY CLICKING HERE
In addition, the music platform will launch SongDNA to allow fans to see who worked on a song; release new tools to help convert listeners into ticket buyers; and introduce human music editors to rate algorithmic playlist recommendations.
