2021-12-24 10:00:01
𝙷𝚘𝚠 𝚂𝚝𝚛𝚎𝚊𝚖𝚒𝚗𝚐 𝙶𝚒𝚊𝚗𝚝 𝚂𝚙𝚘𝚝𝚒𝚏𝚢 𝙼𝚊𝚔𝚎𝚜, 𝙰𝚗𝚍 𝚂𝚙𝚎𝚗𝚍𝚜, 𝙸𝚝𝚜 𝙼𝚘𝚗𝚎𝚢
Spotify makes good use of a "freemium" model, offering up most of its services to users who don't want to pay... as long as they don't mind being interrupted by adverts.
Of Spotify's 380 million active users, 172 million actually pay for Spotify. The rest (more than 200 million) are ad-supported users.
But, as shown in the chart above, Spotify has a big incentive to convert those users into paid. Paid users brought in almost €2.2bn of revenue (~$2.5bn USD), almost 7x what Spotify made from advertising revenue.
About 73% of Spotify's revenue went on what it called "costs of revenue" — which is primarily what was distributed to record labels, artists, and music publishers.
Exactly how much Spotify pays artists is a) hard to find and b) likely to vary a lot from artist to artist, but estimates suggest that 1,000 streams of a song will net $3-5.
𝙲𝚑𝚊𝚛𝚝𝚛 | 𝙳𝚊𝚝𝚊 𝚂𝚝𝚘𝚛𝚢𝚝𝚎𝚕𝚕𝚒𝚗𝚐
37 views07:00