Spotify Technology SA (NYSE:SPOT) shares gained Wednesday after the music streaming service revealed it paid a record $10 billion in royalties to artists in 2024.
Per the Swedish company’s annual Loud & Clear report, payouts to independent artists and labels represented about half of the company’s total royalties for another year at $5 billion.
More than 1,500 artists earned more than $1 million in royalties.
Per the report, the industry has seen a tenfold increase in payouts over the last decade, with streaming contributing $28 billion in revenue in 2024.
The music industry's growth extends beyond financial success, reflecting greater cultural diversity, the report highlighted.
In 2024, artists earning over $100,000 in royalties recorded in more than 50 languages, while those surpassing $1 million used 17 languages, with both more than double the figures from 2017.
Female artists earning over $1 million annually have quadrupled since 2017, with countries like Canada, South Korea, Sweden, and Argentina showing strong female representation among top artists.
Global audiences are increasingly vital for artist success. Over half of the artists earning at least $1,000 in royalties in 2024 gained most of their income from listeners outside their home country.
For those earning over $100,000, more than 80% collaborated with international musicians.
Since 2017, the number of artists earning between $1,000 and $10 million annually has tripled, and nearly a quarter of the 12,500 artists earning over $100,000 in 2024 had not been releasing music professionally five years earlier.
Spotify’s US-listed shares added 5.3% at about $535 in the early afternoon on Wednesday.