Billboard reports that Spotify paid over $9 billion to the music industry in 2023, bringing its total payments to rights holders since its founding to an impressive $48 billion. This signifies a significant contribution to the global music market, with some estimates suggesting Spotify accounted for roughly 20% of label and publishing income worldwide if the industry value rose 10% last year.
The $9 billion in royalties, encompassing both recorded music and publishing rights, likely makes Spotify the single largest source of music revenue globally. While YouTube and other major players like Apple and Amazon also contribute, Spotify’s transparency and focus on music make it a unique force.
Despite holding 31.7% of the global music subscription market according to MIDiA Research’s Q3 2023 report, Spotify faces stiff competition. However, they outgrew the market in 2023, solidifying their lead over Tencent Music Entertainment, Apple Music, Amazon Music, and YouTube Music.
Spotify’s impact extends beyond direct payments, influencing concert and merchandise sales through in-app listings. As the leader in music subscriptions, Spotify continues to play a crucial role in supporting the music industry and shaping its future.
This post originally appeared on All Punked Up’s Substack.
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