Today we confirmed that Spotify has now paid out a total of more than $1 Billion USD in royalties to-date, $500 Million USD of which we paid in 2013 alone! Just one year ago, our total royalties paid were $500 Million USD, and this rapid progress speaks to our success at convincing millions of music fans around the world to once again pay for the music they love.
As with digital downloading or the CD before it, the emergence of streaming services like Spotify has elicited a range of responses from fans, artists, and the wider music industry: excitement, curiosity, and, in some cases, skepticism. We understand all of these reactions. We are helping fans access and enjoy the world’s music in a new way, and with it, we are asking them to pay for their music in an entirely new manner too. As a result, the way that we compensate the people who actually own the music on Spotify is somewhat new and can be unfamiliar to many artists and managers.
Our belief has always been that if we can offer fans a listening experience superior to piracy, then they will be happy to pay for it, and in turn we are happy to pay out nearly 70% of all the money we earn in royalties. We believe that this is the fair approach to take, and that as we grow we will become an increasingly significant contributor to artists’ financial lives.
Many artists have expressed a desire to understand this business model and royalty payment approach in greater detail. We have heard your questions (and complaints) and wanted to address them transparently and accessibly in order to express our commitment to working collaboratively with the creative community.
So today, we are pleased to welcome artists, managers, or interested listeners to our new Spotify Artists website, where we explain our business with the specific numbers and analyses that we use internally to measure our own progress. On these pages, artists and managers will also find detailed guides to using Spotify and to making the most of our features for connecting with existing fans and attracting new ones.
We are complementing the launch of the Spotify Artists site with the rollout of three exciting new products, as well.
Spotify & Next Big Sound Analytics
First, we have teamed up exclusively with our friends at Next Big Sound to develop an Artist Analytics dashboard that will allow artists and managers to view enormous amounts of Spotify’s data relating to their music. This will give any artist on Spotify access to data that illustrates how their music is being heard around the world. Spotify and Next Big Sound firmly believe that the more access artists and managers have to data, the more power they will have over their careers.
Artists can use these new analytics tools to understand how their songs spread for months and years after a release. Along with helping artists better understand our own business model, we hope that this data will support artists in other areas of their businesses by informing their touring and promotional strategies. We will continue exploring new and creative ways to empower artists by sharing with them the unparalleled data that we generate as a service.
If you are an artist or a manager, you can register for analytics beginning today and we’ll be rolling out access to the service shortly. For more information please check out this blog post.
Concerts & Merchandise
In addition to helping artists understand their audience, we are also excited to provide artists with two new features that will enhance the business value of their audience on our service: ticketing and merchandise listings right inside of Spotify, for free!
First, we have now rolled out concert listings within our service on both desktop and iPhone. All Spotify users can see when their favorite artists are playing shows in their areas, browse more information about the shows, and click to buy tickets immediately. These listings, powered by Songkick, are appearing throughout the service, on Artist Pages, and in users’ Discover feeds. This great feature will allow artists to sell more tickets to their fans in the most relevant possible context, and already, over 2 million concerts are being browsed on Spotify every month.
In the upcoming months, we will also be the first music service to roll-out merchandise listings within our apps in partnership with Topspin . As with concerts, this approach will allow fans to see and buy new items from their favorite artists while providing artists a valuable new channel to advertise their Topspin merch offers. Any artist will be able to easily upload and display merch on Spotify (linking to their own merch store) using Topspin’s proven tools, and best of all, we’ll be offering this service for free!
Artists interested in trying out this new merchandise feature may pre-register now by clicking here.
The additions of concert listings and merchandise sales are the first steps in what will be an ongoing effort to bring additional revenue opportunities to artists on top of Spotify’s growing royalty payouts.
Altogether, these initiatives capture our deep and ongoing commitment to the global creative community. We want to play a key role in building a better future for artists, one in which their work is respected, fairly compensated, and widely enjoyed. Only such a future will provide artists with the creative and financial rewards that permit them to continue creating great music for their fans.
We hope that artists everywhere will take advantage of these new offerings, and our dedicated global Artist Services team is always available to help any artists or managers with questions about these initiatives or Spotify in general. Just email us at email@example.com and we will get back to you quickly and answer any questions you may have.
Thanks for taking the time to visit us here. We hope to hear from you soon.
-The Spotify Artist Services Team
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