Independent artists and labels have experienced a record year on Spotify as streaming puts the “power back into the hands of fans and listeners”, according to a report.
DIY artists and artists signed to independent record labels generated nearly 4.5 billion dollars (£3.53 billion) on the music streaming platform in 2023, figures in Spotify’s annual report, Loud And Clear, have shown.
The streamer said this marks the first year independents accounted for around half of what the entire industry generated on Spotify, which totalled nine billion dollars (£7.07 billion) last year.
Recently we shared that Spotify paid the music industry more money than ever in 2023: More than $9 billion.
And today we're sharing a new record: For the first time ever Indies accounted for about half of what the entire industry generated on Spotify in 2023: $4.5 billion.… pic.twitter.com/BryIdyAds5
— Spotify News (@SpotifyNews) February 27, 2024
International artists have also benefited from music from further afield being more easily available to listeners across the world.
Spotify has said that of the 66,000 artists who generated at least 10,000 dollars (£7,855) on the platform in 2023, more than half were from countries where English is not the first language.
It comes as there has been a surge in popularity for K-pop bands such as Blackpink and BTS as well as Latin music continuing to establish itself as a major player with Puerto Rican rapper Bad Bunny’s album Un Verano Sin Ti being the most streamed album globally on Spotify in 2023, knocking pop superstar Taylor Swift’s Midnights down to second place.
The streamer has said that Spanish, German, Portuguese, French and Korean lead the pack for languages other than English which are doing well, while Hindi, Indonesian, Punjabi, Tamil and Greek have also all seen upticks in 2023.
Breaking down revenue for artists, the streamer has said that 50,000 artists generated at least 16,500 dollars (£12,960) from its platform in 2023.
Spotify’s international head of artist and industry partnerships, Bryan Johnson, said during a briefing on the report: “Pre streaming there wasn’t the physical shelf space for every artist at record stores and it’s fair to say that you likely needed a record deal to even get your foot in the door.
“The door was often closed unless you had that particular deal in place and had those tastemakers on side.
“In 2024, there are more options on how to release music, there are more routes to market for artists, and there’s more audience development tools, more marketing tools available to help artists grow their fan bases all around the world.
“The streaming opportunity has democratised the industry. And importantly, it’s also put the power back into the hands of fans and listeners to set the direction of what is popular.
“This is contributing to things like the rise of more independent artists being able to find success on Spotify … and the growth of non-English language music across the globe.”
He added that the streaming giant pays out “roughly two thirds of every dollar” that it makes from the music, including money from listeners who pay for the premium subscription and advertising revenue from the free tier.
The Sweden-based business does not pay artists or songwriters directly, but pays the rights holders of the music who include record labels, publishers, independent distributors, performance rights organisations and collecting societies.
The streamer has said the nine billion dollars it paid the music industry last year is its highest annual payment, and the amount has nearly tripled over the past six years.
Spotify acknowledged that the ease of streaming has created a busy marketplace, with more than 10 million uploaders having at least one track and around eight million having fewer than 10 tracks.
However, it said it is focusing on the artists “most dependent on streaming as part of their livelihood” when building financial opportunities, which it says is around 225,000 emerging and professional artists.
The annual report comes after it was reported in December that Spotify was to axe 17% of its jobs in a bid to be more efficient in the face of a growth slowdown, a move affecting about 1,500 posts.
It followed after the company announced it would cut around 600 roles in January 2023 and last summer it said around 200 jobs in its podcasting unit would be affected.
The company also increased its subscription fees in the UK, US and Australia last July, as it said it would pass cost increases on to customers.