Spotify is perhaps the biggest music streaming platform in the world right now. As streaming becomes an vital infrastructure in music consumption, it has become an essential tool for musicians, singers, and artists to send their songs for streaming and get something in return.
Despite the controversy behind artist compensation, Spotify revealed that they have paid over $9 billion in 2023 to various music artists, labels, and publishers.
Spotify Paid $9 Billion For Artists In 2023
After Trevor Noah sniped on TikTok at the 2024 Grammy Awards for failing to strike a fair deal for musicians with Universal Music Group, the focus on Spotify and how they compensate these artists heightened.
"Shame on you, TikTok, for ripping off artists. How dare you do that? That's Spotify's job!" the Emmy-winning host quipped in his opening monologue during the ceremony.
Now, Spotify revealed in a recent press release that they have paid these artists a hefty amount in 2023.
"Spotify paid record labels and publishers - which represent artists and songwriters - more money than ever in 2023: $9B+. That figure has nearly tripled over the past six years, and represents a big part of the $48B+ Spotify has paid since its founding," a statement from the streaming giant said, as quoted by Popdust.
Billboard, on the other hand, noted that the $9 billion payout is for both recorded music and publishing rights. In comparison with other streaming platforms, YouTube paid $6 billion for rights.
READ ALSO: Top 5 Most-Streamed Albums of 2023 in the United States
Spotify Layoffs In 2023
The announcement came months after massive layoffs took effect on the company, which even saw the exit of its longtime partner and Chief Financial Officer Paul Vogel. The streaming company has also axed 17% of its global workforce, roughly around 1,500 heads, before 2023 wrapped up.
The Spotify layoff was the third round of layoffs in 2023. In January 2023, they slashed 6% of their global workforce, impacting more than 600 people on their podcast division. In June 2023, around 200 people, or 2% were also sacked.
CEO Daniel Ek explained that this was a crucial step" for a bigger effort to be "relentlessly resourceful."
Ek revealed that despite the huge impact of Spotify worldwide, the global operation has remained "too big" and that "considering the gap between our financial goal and our current operational costs," Ek decided that a substantial action to rightsize the company's costs was the "best option" to accomplish our objectives."
READ MORE: Spotify Axes More Employees Globally As 2023 Wraps Up: Here's Why
