Spotify has paid out nearly $60 billion to the music industry since its launch. In 2024 alone, the platform set a record by paying $10 billion. Today, Spotify serves more than 500 million paying users across all music streaming platforms.
The company’s growth strategy centers on retaining users through personalized features like AI DJ, Daylist, and the popular Spotify Wrapped. These innovations, alongside curated content and the option of ad-supported streaming, have attracted many free-tier users, 60% of whom eventually upgraded to Premium subscriptions.
Spotify credits its success to being available in multiple markets and offering localized pricing. This approach has fueled significant growth in countries like India, Brazil, Mexico, and Nigeria. For instance, Spotify’s presence in Nigeria has given artists a platform to share their music globally, opening up new revenue opportunities. In 2023, Spotify paid Nigerian artists 23 billion naira.
Globally, the music industry is thriving. In 2024, music copyright was valued at $45.5 billion, surpassing the movie industry for the first time. Spotify also reported that 10,000 artists earned over $100,000 annually from its platform in 2024 alone.
David Kaefer, Spotify’s Vice President for Music Business, emphasized the company’s commitment to supporting artists and fans. “Our goal is to help artists reach their fans, innovate for them, and inspire people to pay for music. This focus on onboarding people to paid streaming has increased our payouts tenfold in the past decade,” he said.
For Nigeria, the future is promising. With one of the youngest populations in the world, the country is poised to see increased streaming activity and greater revenue retention in its music ecosystem.
