Spotify has heard the criticism about transparency loud and clear apparently. The streaming giant has launched a new website titled Loud & Clear that aims to explain how artists get paid and provides examples the payouts to artists at various levels.
According to Spotify, they have paid $23 billion in royalties to rights holders — including over $5 billion in 2020 alone.
On the website, you can click on a select dollar amount and see how many artists generated that much money. 42,100 generated $10,000 however that doesn’t mean the artist directly earned that because it then gets split by labels, distributors, publishers, writers etc. You can also see how many artists have a certain amount of listeners or streams on a song. There are 13,000 artists who have 500,000 monthly listeners.
There is a video to help explain further how the pie gets divided my many different industry hands.
There is still plenty to more for artists to be concerned with regarding streaming companies in general (not just Spotify), but more transparency with record labels would help unravel the mystery of the music business.