Music Business

Spotify Paid Subscribers Double To 20M, Payouts Top $3B

Spotify logoTwo days after Apple Music's launch, Spotify is going on the offensive with a campaign to remind us that it got there first and will not be easily defeated. Late yesterday news "leaked" that is has completed a $526 million funding round.  Today they released impressive new paid subscriber numbers.  

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Spotify has doubled its paid subscriber count in just over a yeart o 20 million, the music streamer announced today. Spotify now has more than 75 million active users. Labels and artists are partiularly concerned with paid subscriber stats since they net far greater revenue.

Spotify also announced that it has paid creators and rightsholders $3 billion since launching 7 years ago.  Payouts accelerated sharply to $300 million in the first three months of 2015.  

Spotify says that its added an average of one new subscriber every three seconds over the last year.

Payments To Artists Grow

To illustrate how streaming growth effects different types of artists, Spotify has released 2 charts.  The blue columns show average actual payouts to rightsholders on behalf of a single artist or band of each category over the last 12 months, which started with 10 million subscribers; the green columns show our projected average payouts over the next 12 months, starting from the new baseline of 20 million paying subscribers.

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1 Comment

  1. Yea this is all well and good except that the payouts are skewed heavily in favour of the major artists and the major labels. The way the pie is divided is still not fair. One artists stream should be worth the same as another artists stream and this is exactly what videscape does

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