Spotify has announced a record payout of $10 billion in royalties to the music industry in 2024, marking a significant milestone in the platform’s ongoing success. This payout brings Spotify’s total royalties to nearly $60 billion since its launch in 2008.
The streaming giant now boasts more than 500 million paying users worldwide, across all its music streaming services.
A key factor in Spotify’s growth has been its focus on personalized and innovative products like AI DJ, Daylist, and the annual Spotify Wrapped.
These tools, along with a growing reliance on ad-supported streams, have played a major role in attracting new users who eventually transition to paying subscriptions. Spotify reports that 60% of its Premium subscribers once started as free-tier users.
In terms of market expansion, Nigeria stands out as the only African country experiencing significant growth. According to Spotify, markets like India, Brazil, Mexico, and Nigeria have seen substantial growth, largely due to the platform’s localized pricing and market segmentation strategies.
David Kaefer, Spotify’s Vice President of Music Business, emphasized the success of these strategies, noting that offering tailored pricing and investing in local markets has been key to the company’s expansion.
In 2023, Spotify paid over $16.8 million to Nigerian artists, with more than half of the royalties going to independent creators and labels. The number of Nigerian artists earning over $6,700 annually from the platform has quadrupled since 2018.
This growth is attributed to Spotify’s direct distribution model, allowing artists to reach global audiences and generate consistent revenue streams.
Looking ahead, Spotify continues to focus on innovation, aiming to provide the best experience for both artists and listeners, with plans to drive further growth in emerging markets like Nigeria.
