It’s well known that making a living in the arts is challenging, and only a few manage to achieve significant wealth. However, in recent times, it’s become easier to gain global fame quickly and reach a large audience, which can lead to substantial profits. But the real question is, are the artists themselves the ones who benefit the most from this?
According to Gearnews, Spotify’s CEO, Daniel Ek, has been making millions of dollars from the success of popular music artists like Taylor Swift, Drake and Ed Sheeran. Since July 2023, Ek has earned an astonishing $345 million through the sale of shares. This amount hypothetically translates to 115 billion streams, which would make him the most streamed artist in the world, earning more money than Taylor Swift and Drake combined. Following him is Martin Lorentzon, Spotify’s co-founder, whose share is valued at $166.8 million, equivalent to 55.6 billion streams.
For an artist to earn money through Spotify, they need to have at least 1,000 streams in the previous 12 months. As data is showing, on average, Spotify pays artists between $0.003 and $0.005 per stream. The revenue is typically split 70/30, with 70% going to the artist and rights holders, and 30% to Spotify. However, this split isn’t as favorable as it sounds, since the artist’s share is further divided among all the rights holders involved, including the publisher, songwriter, and master recording owners (such as a label if the artist is signed to one). Artists are expressing their dissatisfaction with the current situation by organizing protests and trying to gain more rights and recognition for their work.
