Streaming giant Spotify has announced a milestone achievement, paying a record $10 billion in royalties to artists in 2024. This marks the largest single-year payout in the music industry's history. Of this amount, nearly 1,500 artists earned over $1 million each in royalties.
The Swedish company highlighted that its royalty payments have increased tenfold since 2014, when they amounted to $1 billion. This growth underscores Spotify's expanding influence and commitment to supporting artists globally.
In the past year, Spotify faced legal challenges in the United States over allegations of underpayment of royalties for millions of songs. However, a federal judge in New York recently dismissed the lawsuit, allowing Spotify to continue its operations without legal hindrance.
Spotify has also strengthened its partnerships by signing multi-year agreements with major record labels like Warner Music and Universal Music. These agreements are expected to enhance the platform's music offerings and ensure a steady stream of content for its users.
Looking ahead, Spotify CEO Daniel Ek announced plans to introduce personalized services, including a premium feature called "Music Superfan." This initiative aims to enhance user engagement and provide a more tailored listening experience. The company projects its monthly active users to reach 678 million in the first quarter.
