As digital music began to eclipse CDs in the early 2000s, iTunes emerged as the leading platform for legally purchasing music. However, in 2008, Spotify introduced a new model that allowed users to pay for access to a vast music library rather than purchasing individual songs or albums.
By 2016, music streaming revenue had overtaken digital download revenue for the first time, significantly altering the financial dynamics of the music industry.
Spotify, holding a 31.7% market share as of late 2023 according to Statista, and boasting over 600 million active users by early 2024, leads globally in contemporary music consumption. Although competitors like Apple, Amazon, and YouTube are competing for a share of the market, Spotify stands as the preeminent force in the industry.
Regarding musicians’ earnings from Spotify, less well-known artists with smaller audiences typically do not generate substantial income through the platform. However, prominent, multinational artists whose annual streams reach billions can earn tens or even hundreds of millions of dollars annually in Spotify royalties, which range between $0.003 and $0.005 per stream. It is noteworthy that most artists with streams in the millions are signed to major record labels, so the amount of Spotify revenue that translates into their actual earnings can vary depending on their contracts and distribution agreements.
The following list details the top 12 artists in terms of royalty earnings from Spotify, based on all-time streaming data as of late 2024. This information, derived from ChartMasters.org, excludes streams where an artist is featured on another’s track. Estimated royalty amounts are calculated using an average payout of $0.004 per stream.
Taylor Swift – Total streams: 92.27 billion; Estimated royalties: $369.07 million; Monthly listeners: 91.78 million; Songs on Spotify: 442.
Drake – Total streams: 80.25 billion; Estimated royalties: $321 million; Monthly listeners: 75.32 million; Songs on Spotify: 331.
Bad Bunny – Total streams: 76.19 billion; Estimated royalties: $304.77 million; Monthly listeners: 63.2 million; Songs on Spotify: 193.
The Weeknd – Total streams: 62.42 billion; Estimated royalties: $249.69 million; Monthly listeners: 120.25 million; Songs on Spotify: 235.
Ed Sheeran – Total streams: 50.11 billion; Estimated royalties: $200.44 million; Monthly listeners: 76.98 million; Songs on Spotify: 296.
Ariana Grande – Total streams: 48.21 billion; Estimated royalties: $192.84 million; Monthly listeners: 82 million; Songs on Spotify: 243.
Eminem – Total streams: 46.22 billion; Estimated royalties: $184.9 million; Monthly listeners: 79.87 million; Songs on Spotify: 334.
Justin Bieber – Total streams: 44.73 billion; Estimated royalties: $178.9 million; Monthly listeners: 82.23 million; Songs on Spotify: 226.
Kanye West – Total streams: 42.34 billion; Estimated royalties: $169.33 million; Monthly listeners: 68.24 million; Songs on Spotify: 289.
Post Malone – Total streams: 42.26 billion; Estimated royalties: $169.04 million; Monthly listeners: 76.2 million; Songs on Spotify: 149.
Billie Eilish – Total streams: 40.61 billion; Estimated royalties: $162.44 million; Monthly listeners: 107.67 million; Songs on Spotify: 80.
- BTS – Total streams: 40.25 billion; Estimated royalties: $160.98 million; Monthly listeners: 26.17 million; Songs on Spotify: 274.
Spotify generates revenue primarily through advertising and subscriptions. Advertisers pay the service to deliver ads to users, while Spotify Premium subscribers pay a monthly fee for ad-free listening and offline downloads. This revenue is used to pay royalties to musicians.
Spotify distributes streaming revenue to music rights holders (artists, record labels, etc.) based on the number of streams. This distribution reportedly follows a 70% (to rights holders) and 30% (to Spotify) model. Although this model is not confirmed on Spotify’s website, it is known that rights holders receive between $0.003 and $0.005 per stream, with streams needing to last at least 30 seconds to count. Factors such as geographic location and whether the listener is a Premium subscriber influence the amount received.
To qualify for revenue sharing, a song must achieve at least 1,000 streams within a 12-month period. However, this requirement poses no issue for the artists listed, as their streaming figures consistently exceed this threshold.
For quick reference, Spotify’s streaming data indicates a music streaming market share of 31.7%, approximately $9 billion in royalties paid out in 2023, over 615 million active users, and more than 239 million Premium subscribers.
